Equity Analysis /
Singapore

SG : UG Healthcare Corp Ltd - Tailwinds subsiding

    Khangchuen Ong
    Khangchuen Ong

    Research Analyst

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    CGS-CIMB
    30 August 2021
    Published byCGS-CIMB

    UG Healthcare (UGHC) reported an FY6/21 net profit of S$118.8m (+786% yoy), in line with expectations. Glove ASPs have been declining since Mar; UGHC could be more resilient given its: 1) product mix, and 2) downstream presence in emerging markets. Reiterate Add, with a TP of S$0.65. Valuation is undemanding at 6.1x CY22F P/E, supported by net cash of S$49.8m (15% of market cap).