UGHealthcare    Last:0.084    -0.002

Gloves and more

Stagnant, Waiting for boss instruction? 

 

If i am not wrong, the distributor companies are also UG subsidiaries (either partially or fully owned). They profit both from trading gloves and other medical supplies and also from upstream gloves products. They manage and control pricings better than other OEM companies. Dyodd.

grateful      ( Date: 18-May-2021 12:27) Posted: UG may not give big dividend payout like other OEM glove players. Remember that they have distribution which they also need to give credit to their local distributors and customers. The trade facilities under the short-term borrowing will increase when covid situation normalise.  Think need to pay cash for gloves, that is why short-term borrowings is lower.  Currently, the 4.6 billion production capacity from FY22 is still very small compared to Riverstone and others.  No economies of scale and the recent announcement said they have plans for further capacity expansion.  Capital gain is better than dividend from a fast growing company.  If pay high dividends, the biggest beneficiary is the major shareholders. lol  I rather they reinvest the cash resources to grow the company than to pay themselves via fat dividends.    Longtermer      ( Date: 18-May-2021 10:50) Posted: Look at UG past business development and progress over the years. They increased factory capacities, build up the distribution networks, create branding awareness etc incurring heavy capex over the last 2-3 years just bf Covid.  I think they had debts of about $30m plus minus. How to give dividend when you are growing the biz then? Due to the Covid19, they have now paid off most debts and become net cash company in just 1 year. They did a placement at 85c per share lto some institutions last year to further increase their capacities to 4.6b gloves. This year they reported record rev and profits are close to $90m for 3 qtrs. Est full year profits to be about $125 to $130m and eps will be about 20c. They are likely to give dividend this year due to record profits, huge cash on hand and it is also time reward their royal shareholders and placement institutions imo.. Question is whether they give 20% or 30%  or 40% of their huge earnings. Note that Malaysia gloves companies incl RS give 40%.  August we shall all know.. Dyodd.

 

Yes agreed capital gains will be better. But Funds may want to see some dividends too even if it is small. 

 

UG may not give big dividend payout like other OEM glove players.
Remember that they have distribution which they also need to give credit to their local distributors and customers.
The trade facilities under the short-term borrowing will increase when covid situation normalise. 
Think need to pay cash for gloves, that is why short-term borrowings is lower. 
Currently, the 4.6 billion production capacity from FY22 is still very small compared to Riverstone and others. 
No economies of scale and the recent announcement said they have plans for further capacity expansion. 
Capital gain is better than dividend from a fast growing company. 
If pay high dividends, the biggest beneficiary is the major shareholders. lol 
I rather they reinvest the cash resources to grow the company than to pay themselves via fat dividends. 
 

Longtermer      ( Date: 18-May-2021 10:50) Posted: Look at UG past business development and progress over the years. They increased factory capacities, build up the distribution networks, create branding awareness etc incurring heavy capex over the last 2-3 years just bf Covid.  I think they had debts of about $30m plus minus. How to give dividend when you are growing the biz then? Due to the Covid19, they have now paid off most debts and become net cash company in just 1 year. They did a placement at 85c per share lto some institutions last year to further increase their capacities to 4.6b gloves. This year they reported record rev and profits are close to $90m for 3 qtrs. Est full year profits to be about $125 to $130m and eps will be about 20c. They are likely to give dividend this year due to record profits, huge cash on hand and it is also time reward their royal shareholders and placement institutions imo.. Question is whether they give 20% or 30%  or 40% of their huge earnings. Note that Malaysia gloves companies incl RS give 40%.  August we shall all know.. Dyodd.   PhillipTan      ( Date: 17-May-2021 23:27) Posted: Seems like UG only gave their first dividends last year after going public in 2014 UG hasn' t been consistently giving div every Aug So how is the div in August expected?

 

I am very sure there will be an dividend announcement in August. Its either 4 cents, 4.5 cents or 5 cents. 

 

The dividend in Aug is definitely expected because their year end is June period i.e results reported in Aug2021 are for fy2021. But dividend payout not expected to match other big gloves companies because company is growing and is looking to double their capacity in the near future. Dyodd to differentiate between the different gloves companies to suit your risk appetite.

PhillipTan      ( Date: 18-May-2021 11:43) Posted: Most companies take on debts If company is profitable and is able to do both loan repayment and interest payment and still have excess cash, they may give divs too Having debts doesn' t necessarily mean a company can' t give divs whether stable or growing On the other hand, sometimes even when companies are very profitable and established, they are not giving dividends too Eg. Alibaba Yes, UG may be very profitable and cash rich due to covid situation now There is this good possibility that there will be div in August, something that shareholders are hoping for But I don' t really agree that div in August is something that is expected, unless they mentioned about it in their reports or agms etc Or if they had a previous record of doing so We shall know in August lol   Longtermer      ( Date: 18-May-2021 10:50) Posted: Look at UG past business development and progress over the years. They increased factory capacities, build up the distribution networks, create branding awareness etc incurring heavy capex over the last 2-3 years just bf Covid.  I think they had debts of about $30m plus minus. How to give dividend when you are growing the biz then? Due to the Covid19, they have now paid off most debts and become net cash company in just 1 year. They did a placement at 85c per share lto some institutions last year to further increase their capacities to 4.6b gloves. This year they reported record rev and profits are close to $90m for 3 qtrs. Est full year profits to be about $125 to $130m and eps will be about 20c. They are likely to give dividend this year due to record profits, huge cash on hand and it is also time reward their royal shareholders and placement institutions imo.. Question is whether they give 20% or 30%  or 40% of their huge earnings. Note that Malaysia gloves companies incl RS give 40%.  August we shall all know.. Dyodd.

 

Will see if 70 cents can hold before picking up more.  Fundamentals are still good so will keep some for medium term.

johnsonyew      ( Date: 18-May-2021 11:11) Posted: please buy more to support, others glove green, this UG red! Big player take profit, small player suffer everyday Richardlai      ( Date: 18-May-2021 10:55) Posted: Nice summary Longtermer ! Yes they are doing good and seem to be pretty well managed .

 

when share price  going down, then a lot of " long trader" come out comment. When up, then " short trader" come out comment

 

Most companies take on debts
If company is profitable and is able to do both loan repayment and interest payment and still have excess cash, they may give divs too
Having debts doesn' t necessarily mean a company can' t give divs whether stable or growing

On the other hand, sometimes even when companies are very profitable and established, they are not giving dividends too
Eg. Alibaba

Yes, UG may be very profitable and cash rich due to covid situation now
There is this good possibility that there will be div in August, something that shareholders are hoping for
But I don' t really agree that div in August is something that is expected, unless they mentioned about it in their reports or agms etc
Or if they had a previous record of doing so
We shall know in August lol
 

Longtermer      ( Date: 18-May-2021 10:50) Posted: Look at UG past business development and progress over the years. They increased factory capacities, build up the distribution networks, create branding awareness etc incurring heavy capex over the last 2-3 years just bf Covid.  I think they had debts of about $30m plus minus. How to give dividend when you are growing the biz then? Due to the Covid19, they have now paid off most debts and become net cash company in just 1 year. They did a placement at 85c per share lto some institutions last year to further increase their capacities to 4.6b gloves. This year they reported record rev and profits are close to $90m for 3 qtrs. Est full year profits to be about $125 to $130m and eps will be about 20c. They are likely to give dividend this year due to record profits, huge cash on hand and it is also time reward their royal shareholders and placement institutions imo.. Question is whether they give 20% or 30%  or 40% of their huge earnings. Note that Malaysia gloves companies incl RS give 40%.  August we shall all know.. Dyodd.   PhillipTan      ( Date: 17-May-2021 23:27) Posted: Seems like UG only gave their first dividends last year after going public in 2014 UG hasn' t been consistently giving div every Aug So how is the div in August expected?

 

medical is buy on dips i think, collect some at 705/710

 

Cut at 0.715 lose commission, will skip this counter

fighting      ( Date: 17-May-2021 14:02) Posted: Bought at 0.715, now let's see if Medtec can break 1.100 then UG will follow fighting      ( Date: 17-May-2021 13:10) Posted: In accumulating mode, likely will go up soon

 

I am a believer of this counter. Huat ah.

 

please buy more to support, others glove green, this UG red! Big player take profit, small player suffer everyday

Richardlai      ( Date: 18-May-2021 10:55) Posted: Nice summary Longtermer ! Yes they are doing good and seem to be pretty well managed .

 

Nice summary Longtermer ! Yes they are doing good and seem to be pretty well managed .

 

Isn' t it too cheap to ignore?!

 

Look at UG past business development and progress over the years.
They increased factory capacities, build up the distribution networks, create branding awareness etc incurring heavy capex over the last 2-3 years just bf Covid.  I think they had debts of about $30m plus minus.
How to give dividend when you are growing the biz then?

Due to the Covid19, they have now paid off most debts and become net cash company in just 1 year. They did a placement at 85c per share lto some institutions last year to further increase their capacities to 4.6b gloves.

This year they reported record rev and profits are close to $90m for 3 qtrs. Est full year profits to be about $125 to $130m and eps will be about 20c.
They are likely to give dividend this year due to record profits, huge cash on hand and it is also time reward their royal shareholders and placement institutions imo..
Question is whether they give 20% or 30%  or 40% of their huge earnings.
Note that Malaysia gloves companies incl RS give 40%. 
August we shall all know.. Dyodd.
 

PhillipTan      ( Date: 17-May-2021 23:27) Posted: Seems like UG only gave their first dividends last year after going public in 2014 UG hasn' t been consistently giving div every Aug So how is the div in August expected?   FreedomAngelz      ( Date: 17-May-2021 19:57) Posted: That paltry dividend you received is called special dividend.  Full year result and the big dividend is expected in August.

 

This counter has been good for me generally. Yes I do trade and sell some when it is up . But have also been buying back.on dips.

 

continue buy lor.. discount price to u now

Richardlai      ( Date: 18-May-2021 10:12) Posted: Yes price coming off . Seems the BB cant hold the price. If 70 cents cant hold we will see 67 again. But doubt if will drop too much because of the company' s good  fundamentals. johnsonyew      ( Date: 18-May-2021 09:55) Posted: because there is one call " richard" and " trader1970" not comment when it goes dow

 

Yes price coming off . Seems the BB cant hold the price. If 70 cents cant hold we will see 67 again. But doubt if will drop too much because of the company' s good  fundamentals.

johnsonyew      ( Date: 18-May-2021 09:55) Posted: because there is one call " richard" and " trader1970" not comment when it goes down civicavantae      ( Date: 18-May-2021 09:41) Posted: How come UG is not perfoming like Medtecs???

 

Thx for the feedback on dividend guys. Unless UG declares a decent dividend this August, i may switch to some other glove counters which at least give good dividends withh the current record profits.