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
SGX Stock Analyst Report ADD MAINTAIN ADD 0.420 SAME 0.420

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

Check out the most recent target prices at UG Healthcare Target Prices. Listing of analyst research reports at UG Healthcare Analyst Report.

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


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