UGHealthcare    Last:0.085   -

Gloves and more

Price for UG is holding well , presently there could be a bit of collection. 

 

Patience.. bursa reversed already. Supermax up 4.4%. Dyodd.

 

Looking at min 85c which is institutions purchase price. Results next month ..

boyboy61      ( Date: 14-Jul-2021 10:29) Posted: going to 4 series soon Joelton      ( Date: 14-Jul-2021 09:36) Posted: Analysts mixed on UG Healthcare following halt in glove production due to EMCO Analysts from RHB Group Research and CGS-CIMB Research have given mixed reactions to UG Healthcare&rsquo s announcement on July 12 that it was halting operations of its manufacturing plants in Seremban temporarily due to Malaysia' s Enhanced Movement Control Order (EMCO) from July 9 to July 22.   RHB&rsquo s Singapore research team views the development as negative to UG Healthcare&rsquo s near-term earnings. The company disclosed that the plant closure will affect its production by 80 million pieces of gloves, or 2.35% of total production.   This is on top of the estimated productivity loss the group previously announced, bringing the total reduction in productivity to approximately 165 million pieces of gloves or 4.85% of the group&rsquo s annual production capacity of 3.4 billion pieces of gloves. To that end, the team has lowered their FY2022 ending June earnings forecast to $55 million, to reflect a lower utilisation rate assumption.   &ldquo We have assumed a lower utilisation rate to 85% for FY2022 from 90% due to the EMCO. FY2021 earnings are not affected, given that UGHC&rsquo s financial year-end is in June. We also maintain our FY2023 earnings, as we expect the EMCO to be over eventually,&rdquo the team writes in a July 13 research note.   The team also views that average selling prices (ASPs) for gloves have peaked in 1QFY2021, given the rising competition from new gloves supply in the market.   Given these factors, RHB has kept its &lsquo neutral&rsquo rating for UG Healthcare but with a lower target price of 57 cents, down from 61 cents previously.    Meanwhile, CGS-CIMB analyst Ong Khang Chuen has also lowered his earnings per share (EPS) forecasts to reflect the lower production. &ldquo We believe the negative impact will mainly be reflected in 1QFY2022, and our preliminary estimates point towards c.5.6% downside to our FY2022 EPS forecasts,&rdquo he says.   However, Ong believes that the announcement by UG Healthcare will have little effect on its share price. &ldquo We see limited share price reaction to UGHC&rsquo s latest announcement, as it has trended in line with peers since [the] announcement of Selangor EMCO,&rdquo he says in a Singapore rubber gloves sector research note on July 12.   He maintains his &ldquo add&rdquo call for UG Healthcare with a target price of $1.20. &ldquo UG Healthcare&rsquo s valuation is undemanding, trading at 4.6 times 2022 P/E while being supported by net cash of $50 million,&rdquo he highlights.   Overall, Ong remains neutral on the rubber gloves sector, the downtrend in ASP and near-term uncertainties on output. For more stories about where the money flows, click here for our Capital section   Noting that some 58% of Malaysia-produced gloves are manufactured at plants located in Selangor, Ong views that the overall production impact in Malaysia is now likely higher given the imposition of EMCO in more Selangor districts, as well as ongoing manpower limitations in other states.   &ldquo Should the operation suspension in EMCO districts be extended beyond the initially announced two weeks, we see longer-term repercussions, where global glove buyers may have no choice but to turn to glove makers in other countries, such as Thailand, China and Vietnam, to secure glove supplies and/or as alternative suppliers,&rdquo he remarks. &ldquo Riverstone Holdings remains the least impacted glovemaker (by the EMCO) under our glove coverage, as most of its operations are located in Taiping, Perak,&rdquo he adds.

 

Bursa glove burst up strongly....hope its the start of a strong reversal back to 0.70

 

MY has done a lousy job in controlling the COVID spread and with Haji round the corner, the situation may look worse in the coming months.

 

 

going to 4 series soon

Joelton      ( Date: 14-Jul-2021 09:36) Posted: Analysts mixed on UG Healthcare following halt in glove production due to EMCO Analysts from RHB Group Research and CGS-CIMB Research have given mixed reactions to UG Healthcare&rsquo s announcement on July 12 that it was halting operations of its manufacturing plants in Seremban temporarily due to Malaysia' s Enhanced Movement Control Order (EMCO) from July 9 to July 22.   RHB&rsquo s Singapore research team views the development as negative to UG Healthcare&rsquo s near-term earnings. The company disclosed that the plant closure will affect its production by 80 million pieces of gloves, or 2.35% of total production.   This is on top of the estimated productivity loss the group previously announced, bringing the total reduction in productivity to approximately 165 million pieces of gloves or 4.85% of the group&rsquo s annual production capacity of 3.4 billion pieces of gloves. To that end, the team has lowered their FY2022 ending June earnings forecast to $55 million, to reflect a lower utilisation rate assumption.   &ldquo We have assumed a lower utilisation rate to 85% for FY2022 from 90% due to the EMCO. FY2021 earnings are not affected, given that UGHC&rsquo s financial year-end is in June. We also maintain our FY2023 earnings, as we expect the EMCO to be over eventually,&rdquo the team writes in a July 13 research note.   The team also views that average selling prices (ASPs) for gloves have peaked in 1QFY2021, given the rising competition from new gloves supply in the market.   Given these factors, RHB has kept its &lsquo neutral&rsquo rating for UG Healthcare but with a lower target price of 57 cents, down from 61 cents previously.    Meanwhile, CGS-CIMB analyst Ong Khang Chuen has also lowered his earnings per share (EPS) forecasts to reflect the lower production. &ldquo We believe the negative impact will mainly be reflected in 1QFY2022, and our preliminary estimates point towards c.5.6% downside to our FY2022 EPS forecasts,&rdquo he says.   However, Ong believes that the announcement by UG Healthcare will have little effect on its share price. &ldquo We see limited share price reaction to UGHC&rsquo s latest announcement, as it has trended in line with peers since [the] announcement of Selangor EMCO,&rdquo he says in a Singapore rubber gloves sector research note on July 12.   He maintains his &ldquo add&rdquo call for UG Healthcare with a target price of $1.20. &ldquo UG Healthcare&rsquo s valuation is undemanding, trading at 4.6 times 2022 P/E while being supported by net cash of $50 million,&rdquo he highlights.   Overall, Ong remains neutral on the rubber gloves sector, the downtrend in ASP and near-term uncertainties on output. For more stories about where the money flows, click here for our Capital section   Noting that some 58% of Malaysia-produced gloves are manufactured at plants located in Selangor, Ong views that the overall production impact in Malaysia is now likely higher given the imposition of EMCO in more Selangor districts, as well as ongoing manpower limitations in other states.   &ldquo Should the operation suspension in EMCO districts be extended beyond the initially announced two weeks, we see longer-term repercussions, where global glove buyers may have no choice but to turn to glove makers in other countries, such as Thailand, China and Vietnam, to secure glove supplies and/or as alternative suppliers,&rdquo he remarks. &ldquo Riverstone Holdings remains the least impacted glovemaker (by the EMCO) under our glove coverage, as most of its operations are located in Taiping, Perak,&rdquo he adds.

 

 

Doubt it will even hit 70 on the short term

Edward555      ( Date: 14-Jul-2021 01:24) Posted: Just read CIMB report and the TP 1.20 at just PE 4.6 times FY2022 is definitely achieveable. This is more than 100% over current price. Vested today. Good luck!   PhillipTan      ( Date: 13-Jul-2021 19:35) Posted: Analysts mixed on UG Healthcare following halt in glove production due to EMCO Analysts from RHB Group Research and CGS-CIMB Research have given mixed reactions to UG Healthcare' s announcement on July 12 that it was halting operations of its manufacturing plants in Seremban temporarily due to Malaysia' s Enhanced Movement Control Order (EMCO) from July 9 to July 22. RHB' s Singapore research team views the development as negative to UG Healthcare' s near-term earnings. The company disclosed that the plant closure will affect its production by 80 million pieces of gloves, or 2.35% of total production. This is on top of the estimated productivity loss the group previously announced, bringing the total reduction in productivity to approximately 165 million pieces of gloves or 4.85% of the group' s annual production capacity of 3.4 billion pieces of gloves. To that end, the team has lowered their FY2022 ending June earnings forecast to $55 million, to reflect a lower utilisation rate assumption. " We have assumed a lower utilisation rate to 85% for FY2022 from 90% due to the EMCO. FY2021 earnings are not affected, given that UGHC' s financial year-end is in June. We also maintain our FY2023 earnings, as we expect the EMCO to be over eventually," the team writes in a July 13 research note. The team also views that average selling prices (ASPs) for gloves have peaked in 1QFY2021, given the rising competition from new gloves supply in the market. Given these factors, RHB has kept its &lsquo neutral' rating for UG Healthcare but with a lower target price of 57 cents, down from 61 cents previously.  Meanwhile, CGS-CIMB analyst Ong Khang Chuen has also lowered his earnings per share (EPS) forecasts to reflect the lower production. " We believe the negative impact will mainly be reflected in 1QFY2022, and our preliminary estimates point towards c.5.6% downside to our FY2022 EPS forecasts," he says. However, Ong believes that the announcement by UG Healthcare will have little effect on its share price. " We see limited share price reaction to UGHC' s latest announcement, as it has trended in line with peers since [the] announcement of Selangor EMCO," he says in a Singapore rubber gloves sector research note on July 12. He maintains his " add" call for UG Healthcare with a target price of $1.20. " UG Healthcare' s valuation is undemanding, trading at 4.6 times 2022 P/E while being supported by net cash of $50 million," he highlights. Overall, Ong remains neutral on the rubber gloves sector, the downtrend in ASP and near-term uncertainties on output. Noting that some 58% of Malaysia-produced gloves are manufactured at plants located in Selangor, Ong views that the overall production impact in Malaysia is now likely higher given the imposition of EMCO in more Selangor districts, as well as ongoing manpower limitations in other states. " Should the operation suspension in EMCO districts be extended beyond the initially announced two weeks, we see longer-term repercussions, where global glove buyers may have no choice but to turn to glove makers in other countries, such as Thailand, China and Vietnam, to secure glove supplies and/or as alternative suppliers," he remarks. " Riverstone Holdings remains the least impacted glovemaker (by the EMCO) under our glove coverage, as most of its operations are located in Taiping, Perak," he adds. Shares in UG Healthcare closed down 0.5 cents or 0.89% lower at 55.5 cents on July 13.

 

Just read CIMB report and the TP 1.20 at just PE 4.6 times FY2022 is definitely achieveable.
This is more than 100% over current price.
Vested today.
Good luck!
 

PhillipTan      ( Date: 13-Jul-2021 19:35) Posted: Analysts mixed on UG Healthcare following halt in glove production due to EMCO Analysts from RHB Group Research and CGS-CIMB Research have given mixed reactions to UG Healthcare' s announcement on July 12 that it was halting operations of its manufacturing plants in Seremban temporarily due to Malaysia' s Enhanced Movement Control Order (EMCO) from July 9 to July 22. RHB' s Singapore research team views the development as negative to UG Healthcare' s near-term earnings. The company disclosed that the plant closure will affect its production by 80 million pieces of gloves, or 2.35% of total production. This is on top of the estimated productivity loss the group previously announced, bringing the total reduction in productivity to approximately 165 million pieces of gloves or 4.85% of the group' s annual production capacity of 3.4 billion pieces of gloves. To that end, the team has lowered their FY2022 ending June earnings forecast to $55 million, to reflect a lower utilisation rate assumption. " We have assumed a lower utilisation rate to 85% for FY2022 from 90% due to the EMCO. FY2021 earnings are not affected, given that UGHC' s financial year-end is in June. We also maintain our FY2023 earnings, as we expect the EMCO to be over eventually," the team writes in a July 13 research note. The team also views that average selling prices (ASPs) for gloves have peaked in 1QFY2021, given the rising competition from new gloves supply in the market. Given these factors, RHB has kept its &lsquo neutral' rating for UG Healthcare but with a lower target price of 57 cents, down from 61 cents previously.  Meanwhile, CGS-CIMB analyst Ong Khang Chuen has also lowered his earnings per share (EPS) forecasts to reflect the lower production. " We believe the negative impact will mainly be reflected in 1QFY2022, and our preliminary estimates point towards c.5.6% downside to our FY2022 EPS forecasts," he says. However, Ong believes that the announcement by UG Healthcare will have little effect on its share price. " We see limited share price reaction to UGHC' s latest announcement, as it has trended in line with peers since [the] announcement of Selangor EMCO," he says in a Singapore rubber gloves sector research note on July 12. He maintains his " add" call for UG Healthcare with a target price of $1.20. " UG Healthcare' s valuation is undemanding, trading at 4.6 times 2022 P/E while being supported by net cash of $50 million," he highlights. Overall, Ong remains neutral on the rubber gloves sector, the downtrend in ASP and near-term uncertainties on output. Noting that some 58% of Malaysia-produced gloves are manufactured at plants located in Selangor, Ong views that the overall production impact in Malaysia is now likely higher given the imposition of EMCO in more Selangor districts, as well as ongoing manpower limitations in other states. " Should the operation suspension in EMCO districts be extended beyond the initially announced two weeks, we see longer-term repercussions, where global glove buyers may have no choice but to turn to glove makers in other countries, such as Thailand, China and Vietnam, to secure glove supplies and/or as alternative suppliers," he remarks. " Riverstone Holdings remains the least impacted glovemaker (by the EMCO) under our glove coverage, as most of its operations are located in Taiping, Perak," he adds. Shares in UG Healthcare closed down 0.5 cents or 0.89% lower at 55.5 cents on July 13.

 

Analysts mixed on UG Healthcare following halt in glove production due to EMCO

Analysts from RHB Group Research and CGS-CIMB Research have given mixed reactions to UG Healthcare' s announcement on July 12 that it was halting operations of its manufacturing plants in Seremban temporarily due to Malaysia' s Enhanced Movement Control Order (EMCO) from July 9 to July 22.

RHB' s Singapore research team views the development as negative to UG Healthcare' s near-term earnings. The company disclosed that the plant closure will affect its production by 80 million pieces of gloves, or 2.35% of total production.

This is on top of the estimated productivity loss the group previously announced, bringing the total reduction in productivity to approximately 165 million pieces of gloves or 4.85% of the group' s annual production capacity of 3.4 billion pieces of gloves.

To that end, the team has lowered their FY2022 ending June earnings forecast to $55 million, to reflect a lower utilisation rate assumption.

" We have assumed a lower utilisation rate to 85% for FY2022 from 90% due to the EMCO. FY2021 earnings are not affected, given that UGHC' s financial year-end is in June. We also maintain our FY2023 earnings, as we expect the EMCO to be over eventually," the team writes in a July 13 research note.

The team also views that average selling prices (ASPs) for gloves have peaked in 1QFY2021, given the rising competition from new gloves supply in the market.

Given these factors, RHB has kept its &lsquo neutral' rating for UG Healthcare but with a lower target price of 57 cents, down from 61 cents previously. 

Meanwhile, CGS-CIMB analyst Ong Khang Chuen has also lowered his earnings per share (EPS) forecasts to reflect the lower production. " We believe the negative impact will mainly be reflected in 1QFY2022, and our preliminary estimates point towards c.5.6% downside to our FY2022 EPS forecasts," he says.

However, Ong believes that the announcement by UG Healthcare will have little effect on its share price. " We see limited share price reaction to UGHC' s latest announcement, as it has trended in line with peers since [the] announcement of Selangor EMCO," he says in a Singapore rubber gloves sector research note on July 12.

He maintains his " add" call for UG Healthcare with a target price of $1.20. " UG Healthcare' s valuation is undemanding, trading at 4.6 times 2022 P/E while being supported by net cash of $50 million," he highlights.

Overall, Ong remains neutral on the rubber gloves sector, the downtrend in ASP and near-term uncertainties on output.

Noting that some 58% of Malaysia-produced gloves are manufactured at plants located in Selangor, Ong views that the overall production impact in Malaysia is now likely higher given the imposition of EMCO in more Selangor districts, as well as ongoing manpower limitations in other states.

" Should the operation suspension in EMCO districts be extended beyond the initially announced two weeks, we see longer-term repercussions, where global glove buyers may have no choice but to turn to glove makers in other countries, such as Thailand, China and Vietnam, to secure glove supplies and/or as alternative suppliers," he remarks.

" Riverstone Holdings remains the least impacted glovemaker (by the EMCO) under our glove coverage, as most of its operations are located in Taiping, Perak," he adds.

Shares in UG Healthcare closed down 0.5 cents or 0.89% lower at 55.5 cents on July 13.

 

 

Share price is holding up pretty well, might move back up end of the day !

 

It is good that UG had built up buffer stock for customers so as to continue delivering during the lockdown period. Seems that once UG opens up fully again it will be pretty busy building up its stocks for delivery again.Its good that there are plenty or orders to fulfill.

 

The reported 2.35% reduction is just 80m gloves. It is quite small when compared to an increase of 500m gloves produced  from their new plant starting April 2021.
Note that Q3 results ended in March 2021 and does not include this additional gloves production.
Expecting good results for full year FY2021 with the latest 500m gloves capacity included and also logistical or container issues mostly resolved i believe.
Will know in early August. Hold tight your shares. Dyodd. 
 

PhillipTan      ( Date: 12-Jul-2021 22:32) Posted: UG Healthcare to see further 2.4% drop in glove production due to EMCO Malaysian glove maker UG Healthcare announced that its manufacturing operations have temporarily halted in compliance with Malaysia' s Enhanced Movement Control Order (EMCO) from July 9 to July 22 in Seremban, where the group' s manufacturing division is located in.  The temporary closure will result in a further reduction in productivity by approximately 80 million pieces of gloves or 2.35% of the group' s annual production capacity. This is on top of the estimated productivity loss the group previously announced, bringing the total reduction in productivity to approximately 165 million pieces of gloves or 4.85% of the group' s annual production capacity of 3.4 billion pieces of gloves. To recap, the group previously announced on June 28 that it has 18 positive Covid-19 cases among its employees. It has since taken action to screen test the rest of its employees. Those who tested positive were isolated in a quarantine and treatment centre with adequate healthcare facilities provided.  The temporary closure of the group' s manufacturing operations in Malaysia, coupled with the limit on workforce capacity to 60% as mandated by the Malaysian government as at June 28, would result in a reduction in capacity of approximately 85 million pieces of gloves or 2.5% of the group' s total annual production capacity of 3.4 billion pieces of gloves.  The group operates an integrated business comprising of an upstream manufacturing division and a downstream distribution division to market and sell disposable gloves under its proprietary &ldquo Unigloves&rdquo brand. Therefore, it has better control and management on the fulfilment of orders to its customer base. During the financial year ended June 30, the group has expanded production capacity from 2.9 billion pieces of gloves to 3.4 billion pieces of gloves, which acts as a natural buffer during this time. The group remains committed to ensure that its customers have the required inventory to meet their needs. Shares in UG Healthcare closed at 56 cents on July 12.

 

UG Healthcare to see further 2.4% drop in glove production due to EMCO

Malaysian glove maker UG Healthcare announced that its manufacturing operations have temporarily halted in compliance with Malaysia' s Enhanced Movement Control Order (EMCO) from July 9 to July 22 in Seremban, where the group' s manufacturing division is located in. 

The temporary closure will result in a further reduction in productivity by approximately 80 million pieces of gloves or 2.35% of the group' s annual production capacity.

This is on top of the estimated productivity loss the group previously announced, bringing the total reduction in productivity to approximately 165 million pieces of gloves or 4.85% of the group' s annual production capacity of 3.4 billion pieces of gloves.

To recap, the group previously announced on June 28 that it has 18 positive Covid-19 cases among its employees. It has since taken action to screen test the rest of its employees. Those who tested positive were isolated in a quarantine and treatment centre with adequate healthcare facilities provided. 

The temporary closure of the group' s manufacturing operations in Malaysia, coupled with the limit on workforce capacity to 60% as mandated by the Malaysian government as at June 28, would result in a reduction in capacity of approximately 85 million pieces of gloves or 2.5% of the group' s total annual production capacity of 3.4 billion pieces of gloves. 

The group operates an integrated business comprising of an upstream manufacturing division and a downstream distribution division to market and sell disposable gloves under its proprietary &ldquo Unigloves&rdquo brand. Therefore, it has better control and management on the fulfilment of orders to its customer base.

During the financial year ended June 30, the group has expanded production capacity from 2.9 billion pieces of gloves to 3.4 billion pieces of gloves, which acts as a natural buffer during this time. The group remains committed to ensure that its customers have the required inventory to meet their needs.

Shares in UG Healthcare closed at 56 cents on July 12.

 

 

think its a dead cat bounce today, given sti green green.
monday if can rise back to 6 series will be good else. keep in store room and freeze

 

TA wise, reversal up coming.

 

hahahaha....zhun bo?

trader1970      ( Date: 09-Jul-2021 14:52) Posted: UG ll have to catch up soon.. Watch for the burst up soon... :):):) Richardlai      ( Date: 09-Jul-2021 12:04) Posted: Yes it was supposed to have an overhang of shortists I read ...but those that dropped more will also rebound more. Riverstone doing good too

 

UG ll have to catch up soon.. Watch for the burst up soon... :):):)

Richardlai      ( Date: 09-Jul-2021 12:04) Posted: Yes it was supposed to have an overhang of shortists I read ...but those that dropped more will also rebound more. Riverstone doing good too ! trader1970      ( Date: 09-Jul-2021 11:54) Posted: Top Glove gonna to be top 30 vol soon.. Should attract more retail participate and will push up all together...just be patient,,:)

 

Yes it was supposed to have an overhang of shortists I read ...but those that dropped more will also rebound more. Riverstone doing good too !

trader1970      ( Date: 09-Jul-2021 11:54) Posted: Top Glove gonna to be top 30 vol soon.. Should attract more retail participate and will push up all together...just be patient,,:)

 

Top Glove gonna to be top 30 vol soon.. Should attract more retail participate and will push up all together...just be patient,,:)