UG Healthcare - Concerns Over Lower ASPs Largely Priced In
- UG Healthcare (SGX:8K7)'s 1QFY22 (Jul 2021 to Sep 2021) results were below expectations, due to:
- weaker volumes, given production disruptions, and
- lower ASPs.
- End-demand seeing signs of recovery; UG Healthcare has stepped up outsourcing efforts as distribution margins set to improve with ex-factory prices stabilising.
- Reiterate ADD rating on UG Healthcare, with a lower target price of S$0.42, based on 11.2x CY23F P/E.
- We cut our FY22-24F earnings per share forecast for UG Healthcare by 32%-42% to account for lower ASP assumptions.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
ONG Khang Chuen CFA CGS-CIMB Research | https://www.cgs-cimb.com 2021-11-16 2021-11-16
Read also CGS-CIMB's most recent report:
2022-05-20 UG Healthcare - OBM Model Bears Fruit
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