Vicplas International - CGS-CIMB Research 2022-03-14: Resilience In The Face Of Cost Increases

Vicplas International - Resilience In The Face Of Cost Increases

  • Vicplas International (SGX:569)'s 1H22 revenue of S$63.2m (+12% y-o-y, +10% h-o-h) was in line with our expectation. 1H22 net profit remained stable at S$5.0m (+0.6% y-o-y, -3% h-o-h) despite cost increases and lack of COVID-19-related government subsidies.
  • As Vicplas International continued its transition into a medical-focused group, it commercialised new projects and further expanded its global customer base in 1H22; this helped to increase its medical segment revenue to S$45m (+11% y-o-y, +13% h-o-h).
  • Management guided that its Changzhou plant extension (~7,000 sqm) is on track for opening near end-FY22F.
  • Reiterate ADD call on Vicplas International with target price of S$0.28 based on 11x CY23F EPS, in line with its FY17-22F average forward P/E multiple. We project FY22-23F dividend yields of 2.3-2.8%.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

William TNG CFA CGS-CIMB Research | Izabella TAN CGS-CIMB Research | 2022-03-14
SGX Stock Analyst Report ADD MAINTAIN ADD 0.280 UP 0.275

Previous report by CGS-CIMB:
2022-01-31 Vicplas International - Medical Business To Spearhead Growth

Relevant links:
Vicplas International Analyst Report,
Vicplas International Target Price,

Vicplas International Share Price History,
Vicplas International Announcements,
Vicplas International Dividends/ Corp Actions,
Vicplas International News Articles


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