UG Healthcare - CGS-CIMB Research 2022-02-16: OBM Model Bears Fruits

UG Healthcare - OBM Model Bears Fruits

  • UG Healthcare (SGX:8K7)'s 2QFY22 (Oct 2021 to Dec 2021) results in line with expectations. Net profit was flattish q-o-q as volume recovery offset weakness in ASPs.
  • End-demand recovering well; UG Healthcare has stepped up outsourcing efforts as distribution margins improved, with end-market pricing relatively sticky.
  • We believe UG Healthcare’s OBM (own-brand manufacturing) model enables it to fare better than OEM peers, which currently face pricing pressure.
  • Reiterate ADD call on UG Healthcare and target price of S$0.42, based on 11.2x CY23F P/E (a 30% discount to the glove sector’s historical mean).

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 | 2022-02-16

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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