“The company is still trading below book value with net cash of $84 million,” he says.
Analysts are turning negative on UG Healthcare Corporation after its earnings for the FY2022 ended June fell 69% y-o-y to $36.8 million. The dip in earnings was mainly due to the lower average selling price (ASP) of disposable examination gloves as the world adjusts to living with Covid-19 as an endemic.
PhillipCapital analyst Paul Chew has downgraded his recommendation to “neutral”, as glove selling prices remained “sluggish”, inching lower on a q-o-q basis. He has also lowered his target price to 20 cents from 32 cents previously. The new target price is pegged to a discount to the big four Malaysian glove makers or an FY2022 P/E of 5x.
