UG Healthcare - CGS-CIMB Research 2021-11-16: Concerns Over Lower ASPs Largely Priced In

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:
    1. weaker volumes, given production disruptions, and
    2. 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 @

ONG Khang Chuen CFA CGS-CIMB Research | 2021-11-16

Read also CGS-CIMB's most recent report:
2022-08-29 UG Healthcare - Navigating Industry Headwinds.

Previous report by CGS-CIMB:
2022-05-20 UG Healthcare - OBM Model Bears Fruit.

Price targets by other brokers at UG Healthcare Target Prices.
Listing of research reports at UG Healthcare Analyst Reports.

Relevant links:
UG Healthcare Share Price History,
UG Healthcare Announcements,
UG Healthcare Dividends & Corporate Actions,
UG Healthcare News Articles

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