UG Health care registered a 61.3% year on years lower earnings of $21.2 million for the 1HFY2022 that ended on 31st December 2021. For the period, its earnings per share stood at 3.42 cents from a high of 9.05 cents for the same period the year.
The company’s revenue dropped by 26.4% year on year to $117.3 million. The company has also reported lower earnings during the first quarter in 2022. It announced earnings of $106 million.
The low figures are attributed to the temporary closure in Malaysia, which affected the group manufacturing operations based in Seremban. Its operations resumed on 23rd July but resulted in a low production volume of disposable examination gloves.
About UG Healthcare
UG Healthcare Corporation Limited is an investment holding company that manufactures and sells disposable gloves. The company operates in three segments which include:
- Nitrile examination gloves
- Latex examination gloves
- Other ancillary products
They offer latex examination gloves made of single chlorinate or double chlorinated polymer coated gloves and nitrile examination gloves.
UG Healthcare also distributed ancillary products such as vinyl and disposable cleanroom gloves, surgical gloves, face masks, and other medical disposables like shoe covers and other related products. Most of the company’s products are used in healthcare, high tech, manufacturing, food and beverage, beauty, and research and development sectors.
Founded in 1989 in Singapore, the corporation serves its customers under the Unigloves brand name in Malaysia, North America, Europe, Africa, South America, and Asia. UG healthcare products conform to international requirements and standards, including:
- ASTM International
- European standard for medical gloves (“EN455”)
- Acceptance Quality Level requirements under the Food and Drug Administration (“USFDA”)
- ISO 11193 standards (International Organization for Standardization for Single-use medical examination gloves)
- China Food and Drug Administration (“CFDA”)
- The National Agency for Food and Drug Business Strategy Administration and Control (“NAFDAC”)
- Brazilian Health Regulatory Agency (“Anvisa”)
UG Healthcare is also looking to broaden its product portfolio through strategic collaborations and access a broader customer base.
UG Health Share Price & Target Price
Here are UG corporation’s share price and target price:
- SGD 0.245 0.000 / 0.00%
- Share Price as of: 2022-04-12 12:58
- Market Cap: S$ 152.8 M
- Market / ISIN Code: Catalyst /
- Sector / Industry Group / Industry: Health Care / Health Care Equipment & Services / Healthcare Equipment and Supplies
The graph information comes from SGinvestors.io on Apr 27, 2022.
The graph information comes from SGinvestors.io on Apr 27, 2022.
Here is an overview of UG Healthcare’s dividend history:
|Ex-Dividend Date||Dividend||Payment Date||Yield|
|Nov 09, 2021||0.001||Dec 23, 2021||2.00%|
|Nov 09, 2021||0.00406||Dec 23, 2021||1.33%|
|Mar 02, 2021||0.00105||Mar 18, 2021||0.56%|
|Nov 09, 2020||0.00238||Dec 23, 2020||0.25%|
|Oct 30, 2019||0.00259||Dec 17, 2019||1.73%|
|Oct 30, 2018||0.00235||Dec 17, 2018||1.12%|
|Oct 28, 2016||0.00587||Dec 15, 2016||1.89%|
UG Healthcare dividends took deep from December 2020 to March 2021, but performance has since then improved.
What Do Analysts Say?
UG Healthcare’s performance aligns with analyst expectations 2QFY22(Oct 2021 to Dec 2021). However, its net profit was a flat quarter on quarter as volume recovery offset weaknesses in the average selling prices.
The corporation has also stepped up its outsourcing efforts after the distribution margins improved, with the end-market pricing remaining relatively sticky. With the own-branding manufacturing model, UG Healthcare can now perform much better than its peers currently facing pricing pressure.
Analysts predict a fair price rise in the stock in the futures since there is some stability with the gloves selling prices. Any rebound in the pricing will remain elusive due to the massive influx in the nitrile capacity in China.
Chinese manufacturers remain the most significant price disrupters in the market, prompting UG Healthcare to lower their prices to match their prices or come closer to their costs. The hug capacity in China is reflected by their ability to deliver to their clients at a short delivery time.
There is also a gloves demand in other industries, such as beauty and farming, where UG Healthcare is experiencing increased demand. These emerging markets are upgrading their quality standards after rising health awareness after the pandemic—exposure to the new markets such as Brazil. Nigeria and China have contributed 45% of their sales.
Is UG Healthcare A Good Stock To Buy?
Yes. If you want to invest in a stock with great returns, UG Healthcare Corporation Limited is a good investment option. Its prices quote 0.740 SGD as of 8th April 2022. Based on our analysis, it is expected to increase in the long term, and its “41A” stock price prognosis for 2026-01-14 is S$3.262.
How Do You Invest In UG Healthcare Stocks?
If you want to invest in UG Healthcare stocks in Singapore, here are the easy steps to follow:
1. Choose a stock trading platform
2. Open an investment brokerage account with the stock trading platform of your choice
3. Fund your brokerage account through your bank account
4. Decide on which stocks you want to invest in
5. Buy the shares
6. Chill out and collect dividends
Is UG Healthcare A Good Buy?
Yes. It is an outstanding stock to buy based on its average performance if you look for great returns in the long run.
Why Did The UG Healthcare Price Drop?
The COVID-19 pandemic resulted in the temporary closure of the manufacturing facilities and a mandated 60 percent workforce capacity in Malaysia’s manufacturing operations. This leads to lower production volumes and leading to lower earnings per share.
What Does UG Healthcare Do?
UG Health Corporation limited manufactures disposable gloves and has established a downstream distribution chain in the market under its proprietary brand ‘Unigloves.’
What Are The UG Healthcare Subsidiaries?
UG Healthcare Corporation subsidiaries include N.S. Uni-Gloves Sdn Bhd, UG Global Resources Sdn Bhd, UG Glovetech Sdn Bhd, Unigloves (Singapore) Pte Ltd, UGHC Marketing Pte Ltd, and UG Engineering Sdn Bhd.
Why Should You Consider Investing in Stocks?
Investing in stocks of any kind comes with a lot of benefits. Here are some of them:
1. Stay Ahead of Inflation
Stocks yield great annualized returns and are much better than the average annualized inflation rates. With stocks, you can buy and hold for a long while, even when the value of the stock drops temporarily.
2. You Get to Take Advantage Of The Growing Economy
Corporate earnings grow as the economy grows. This is mainly because economic growth creates jobs and income-making sales.
So the more the economy grows, the higher the value of your shares, hence a great way to invest.
3. Stocks Are Easy to Buy
The stock market makes it easy for you to buy shares from companies. You can easily purchase stocks from a financial planner, broker, or online broker. Once you set up your brokerage account, you can start buying stocks within hours.
4. Stocks Do Not Require a Lot of Capital to Invest In
Some retail brokers will buy and sell your stock commission-free. Others do not require you to have a minimum balance to start trading. Other expensive stocks can be too costly, and you can buy fractional shares if your broker allows for such an investment.
5. Stocks Have High Liquidity
The stock market allows you to invest in stocks at any time. The term liquidity in finance refers to the fact that you can turn shares into cash very quickly and with low transaction costs. This means that stocks are a great option if you need money fast.
What Are the Risks of Investing in Stocks?
1. Risk of Losing Your Money
With stocks, there is the risk that you could lose your entire investment. If the company you invest in does poorly, you will sell your stock at a lower price than your initial investment.
2. You Need to Take Time to Monitor Your Shares
If you buy your stocks on your own, you have to invest time in researching and monitoring the company you decide to invest in. You have to keep tabs even on the best-performing stocks since they also fall in a market correction, bear market, or crash.
3. Trading Stocks Is Emotionally Tiring
Stock prices keep rising and falling every second. Most people tend to buy out high out of greed and sell low out of fear. The best thing to do is not to check stock price fluctuations every time but regularly.
UG healthcare corporation is an outstanding stock to invest in. Even after being hit during the COVID-19 pandemic, the company has risen to make profits over time. It is expected that its revenue will grow due to its branding and marketing efforts. UG Healthcare is also looking to expand its business to increase revenue.
Find out more about the best stocks to invest in.
- UG Healthcare Ltd manufactures and sells disposable gloves.
- Its Price to Earnings ratio (PE ratio) is reasonable compared to the Asian medical equipment industry.
- UG Healthcare share price has gradually improved after its deep during the pandemic
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