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UGHealthcare Last:0.084

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Gloves and more

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Longtermer 17-May-2021 11:37
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UG still undervalued.
TP at $1.20 just 6 times PE.
No $1 no sell. Cheers

Longtermer ( Date: 13-May-2021 12:50) Posted:

UG Healthcare Corp Ltd
Too cheap to ignore
By CIMB 11 May 2021
a) 3QFY6/21 NP of S$34.3m (a 56-fold increase yoy) was in line, despite logistical disruptions which continued to hamper sales volume.
b) Earnings could continue on an uptrend in 4QFY21, as production capacity growth offsets a gradual decline in ASP.
c) UGHC trades at an undemanding valuation of 5.4x CY22F P/E, and backed by net cash of S$50m. Maintain Add, with a DCF-based TP of S$1.20.

3QFY21: Stronger margins offset topline weakness
UG Healthcare Corp&rsquo s (UGHC) 3QFY21 net profit of S$34.3m (+6% qoq, a 56-fold increase yoy) was in line with expectations.
9M21 net profit made up 77% of our FY21F.
Despite continued logistical disruptions and shipping delays which caused lower revenue recognition in the quarter, margins surprised on the upside.
We understand utilisation rate of UGHC&rsquo s production plans remained optimal (90-95%) during the quarter, and
the higher inventory level (c.S$70m as of end-Mar) will be progressively recognised in coming months with gradual easing of shipping delays.

Gradual tapering off in ASPs
Given the increase in global glove supply with incoming capacity from new and existing glove makers, we understand that glove prices have generally started to taper off since Mar.
UGHC&rsquo s ASPs is expected to normalise at a slower pace in 4QFY21 compared to peers, as we believe its original brand manufacturing (OBM) model allows it to have more control over pricing.
Our FY21F forecast remains intact as we had previously factored in monthly ASP declines since Apr
we continue to expect UGHC to report a stronger profit sequentially in 4Q as production capacity growth offsets the negative impact from ASP decline.

On the lookout for further capacity expansion
Capacity expansion of 500m pcs/annum came on stream since Apr 2021, and the new factory for additional 1.2bn pcs/annum capacity should be fully commissioned by end-Sep.
Post which, UGHC&rsquo s total manufacturing capacity will reach 4.6bn pcs/annum (+59% yoy).
Leveraging on the industry&rsquo s favourable demand-supply dynamics and UGHC strengthened balance sheet (net cash of S$50m as of end-3QFY21),
we see the possibility of further production capacity expansion in CY22F.

Reiterate Add with DCF-based TP of S$1.20
Maintain Add as UGHC continues to enjoy tailwinds of higher glove prices, and valuation is undemanding at 5.4x CY22F P/E, supported by net cash of S$50m.
However, in view of the inflection in selling prices, we switch to a DCF valuation methodology to better reflect earnings normalisation in coming years.
Our TP is lowered to S$1.20, implying 9.9x CY22F P/E.
Re-rating catalysts include stronger-than-expected demand for gloves downside risks include steeper glove pricing decline.

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tritonyeah6666 17-May-2021 10:58
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Lol

Blowyouoff ( Date: 16-May-2021 17:44) Posted:

Thanks for your ' good intention' of posting this in every thread.. you will have good karma

boyboy61 ( Date: 16-May-2021 17:26) Posted:

Yup. Take this opportunity to get out. There may not be another opportunity

trader1970 17-May-2021 10:57
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Medtecs fired the first round of canon and came back..., RS ll follow...
UG has to catch up..:):)

trader1970 17-May-2021 09:56
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RS is backed by its impending listing in MSCI next week Medtecs is supported by the escalation in Taiwan COVID if both are uptrend towards higher high, UG ll ve to follow...
75 is a strong resistance, notwithstanding, BB ll attempt to break it and move it towards 78 to 80... :):):)

HungerStrike ( Date: 17-May-2021 09:51) Posted:

Maybe the current sentiments/ covid situation is strong enough to push past 745/750...

Shifu8888 ( Date: 17-May-2021 09:45) Posted:

75 is a hard resistance.
Don think it will break it till end of financial year reporting with dividence.

HungerStrike 17-May-2021 09:51
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Maybe the current sentiments/ covid situation is strong enough to push past 745/750...

Shifu8888 ( Date: 17-May-2021 09:45) Posted:

75 is a hard resistance.
Don think it will break it till end of financial year reporting with dividence.

Shifu8888 17-May-2021 09:45
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75 is a hard resistance.
Don think it will break it till end of financial year reporting with dividence.

Richardlai 17-May-2021 09:36
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Thanks. I sold a bit earlier, but still holding some which are fully picked up.
If it comes off, will add a bit more.

trader1970 17-May-2021 09:33
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If shot UG, better cover back.. Its Proxy UG and Medtecs refused to yield to selling... If cannot go down, it has to go up amid this negative sentiment only medical stocks can be played... watch....:):) any retracement BB ll buy bac...

Inferno 17-May-2021 09:14
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Everyone' s investment strategy is diff. Some may want to take profit. Some may feel the current situation is a boost to company biz so can buy in. As always, DYODD..

boyboy61 ( Date: 16-May-2021 17:26) Posted:

Yup. Take this opportunity to get out. There may not be another opportunity

FreedomAngelz ( Date: 15-May-2021 16:31) Posted:

Get ready for UG to burst up to $0.80 next week

Blowyouoff 16-May-2021 17:44
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Thanks for your ' good intention' of posting this in every thread.. you will have good karma

boyboy61 ( Date: 16-May-2021 17:26) Posted:

Yup. Take this opportunity to get out. There may not be another opportunity

FreedomAngelz ( Date: 15-May-2021 16:31) Posted:

Get ready for UG to burst up to $0.80 next week

boyboy61 16-May-2021 17:26
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Yup. Take this opportunity to get out. There may not be another opportunity

FreedomAngelz ( Date: 15-May-2021 16:31) Posted:

Get ready for UG to burst up to $0.80 next week

FreedomAngelz 15-May-2021 16:31
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Get ready for UG to burst up to $0.80 next week

muifan 15-May-2021 15:48
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Keep a close look out in how uk is handling
the b1617 indian variant as UG main
market is in Europe And uk...
Read that situation is worsening ..

Richardlai 15-May-2021 08:44
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Yes haha ... did good in a bad market thnx

Inferno 14-May-2021 21:34
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The fun is that you are making money already!!

Richardlai ( Date: 12-May-2021 15:54) Posted:

Okay I will try to pick a bit at 67 for fun.

FreedomAngelz 14-May-2021 17:26
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waiting for MT SGX to catch up to Taiwan side....will help pull up UG a lot

Richardlai 14-May-2021 17:09
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Me too, threw out some. but buying still strong so bought back some haha

trader1970 14-May-2021 16:55
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RS and UG are the leaders of MEDICAL.. both these are heavily sought after amid this CB pandemic... Good hedge against any bad news over the weekend..:):)

newbieliu ( Date: 14-May-2021 16:48) Posted:

indeed controlled from speculation too fast! last minute cheong to catch some shortists! Vested 67

trader1970 ( Date: 14-May-2021 16:47) Posted:

Get ready for the last minute spike up..:):)

newbieliu 14-May-2021 16:48
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indeed controlled from speculation too fast! last minute cheong to catch some shortists! Vested 67

trader1970 ( Date: 14-May-2021 16:47) Posted:

Get ready for the last minute spike up..:):)

trader1970 14-May-2021 16:47
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Get ready for the last minute spike up..:):)

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Gloves and more