UG Healthcare- the possible twin of Riverstone
- Thread starter Dream3881
- Start date
Crazy bull indeed. in 3 months since this post was made, this counter has gone up 10x. 30c to almost $3. Grats to those vested and still holding on.
goldnut
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How can anyone not be vested? Bought yesterday at 2.91, now it's 3.29. Fugging hell.
Hahaha exactly. Still holding on to my small amount bought at 1.6x
Shion
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UG Healthcare posts 'significant increase' in 2H20 earnings of $12.6 mil due to growth in volume of
UG Healthcare posts 'significant increase' in 2H20 earnings of $12.6 mil due to growth in volume of glove products
https://www.theedgesingapore.com/ca...rease-2h20-earnings-126-mil-due-growth-volume
UG Healthcare reported earnings of $12.6 million for 2H20 ended June, a 956.9% surge compared to earnings of $1.2 million in 2H19.
This brings FY20 earnings for the company to $13.4 million, from the $2.5 million a year ago.
Revenue for 2H20 and FY20 increased 80.9% and 57.2% y-o-y to $91.0 million and $144.2 million respectively.
UG Healthcare says the “significant increase” in revenue and net profit were attributable to the increase in the volume of glove products produced and sold. The increase was also contributed by new production lines, as well as the increase in the selling prices of gloves amid the Covid-19 outbreak.
2H20 gross profit surged 225.9% y-o-y to $32.8 million due to the higher selling prices of gloves, which brings the company’s FY20 gross profit to a total of $42.5 million.
2H20 gross profit margin saw a 16 percentage point increase to 36%, and a 9.1 percentage point increase to 29.5% for FY20.
On the back of higher earnings, UG Healthcare has declared a first and final dividend of 0.714 cents per ordinary share for FY20, an increase from the 0.259 cents a year ago. Shareholders will have the option of receiving their dividends in scrip or cash.
Geographically, UG Healthcare’s largest market is in Europe, which saw a 21.6% y-o-y increase to $51.8 million. Its South American market saw the largest growth with a 191.3% increase y-o-y to $47.5 million.
Sales in Africa and Asia increased by 83.1% and 52.1% y-o-y to $7.0 million and $13.0 million respectively.
For FY20, UG Healthcare logged higher other expenses of $6.3 million compared to the $0.2 million in FY19 due to the volatile fluctuations of the functional currencies including the Brazilian real, Chinese renminbi, and British pound against the US dollar, which led to foreign exchange losses.
In addition, the company recorded $0.6 million of allowance for doubtful debt in FY20.
“The global pandemic jolted everyone from our conventional lifestyle and led the group to a breakthrough pushing us forward at a quicker pace, as we have seen in our fourth quarter performance,” says UG Healthcare executive director Lee Jun Yih.
Lee added that UG Healthcare intends to bring forward its production capacity expansion plans to cope with the higher demand.
“The earlier planned additional capacity of 300 million pieces of gloves per annum by end June 2021 will be brought forward to March 2021 and the intended additional capacity will be raised by 200 million pieces per annum to 500 million pieces of gloves per annum,” he adds.
Shares in UG Healthcare closed 11 cents higher, or 3.4% up at $3.37 on Aug 11, prior to the announcement.
UG Healthcare posts 'significant increase' in 2H20 earnings of $12.6 mil due to growth in volume of glove products
https://www.theedgesingapore.com/ca...rease-2h20-earnings-126-mil-due-growth-volume
UG Healthcare reported earnings of $12.6 million for 2H20 ended June, a 956.9% surge compared to earnings of $1.2 million in 2H19.
This brings FY20 earnings for the company to $13.4 million, from the $2.5 million a year ago.
Revenue for 2H20 and FY20 increased 80.9% and 57.2% y-o-y to $91.0 million and $144.2 million respectively.
UG Healthcare says the “significant increase” in revenue and net profit were attributable to the increase in the volume of glove products produced and sold. The increase was also contributed by new production lines, as well as the increase in the selling prices of gloves amid the Covid-19 outbreak.
2H20 gross profit surged 225.9% y-o-y to $32.8 million due to the higher selling prices of gloves, which brings the company’s FY20 gross profit to a total of $42.5 million.
2H20 gross profit margin saw a 16 percentage point increase to 36%, and a 9.1 percentage point increase to 29.5% for FY20.
On the back of higher earnings, UG Healthcare has declared a first and final dividend of 0.714 cents per ordinary share for FY20, an increase from the 0.259 cents a year ago. Shareholders will have the option of receiving their dividends in scrip or cash.
Geographically, UG Healthcare’s largest market is in Europe, which saw a 21.6% y-o-y increase to $51.8 million. Its South American market saw the largest growth with a 191.3% increase y-o-y to $47.5 million.
Sales in Africa and Asia increased by 83.1% and 52.1% y-o-y to $7.0 million and $13.0 million respectively.
For FY20, UG Healthcare logged higher other expenses of $6.3 million compared to the $0.2 million in FY19 due to the volatile fluctuations of the functional currencies including the Brazilian real, Chinese renminbi, and British pound against the US dollar, which led to foreign exchange losses.
In addition, the company recorded $0.6 million of allowance for doubtful debt in FY20.
“The global pandemic jolted everyone from our conventional lifestyle and led the group to a breakthrough pushing us forward at a quicker pace, as we have seen in our fourth quarter performance,” says UG Healthcare executive director Lee Jun Yih.
Lee added that UG Healthcare intends to bring forward its production capacity expansion plans to cope with the higher demand.
“The earlier planned additional capacity of 300 million pieces of gloves per annum by end June 2021 will be brought forward to March 2021 and the intended additional capacity will be raised by 200 million pieces per annum to 500 million pieces of gloves per annum,” he adds.
Shares in UG Healthcare closed 11 cents higher, or 3.4% up at $3.37 on Aug 11, prior to the announcement.
Explosive results. Ready to see this fly tomorrow. Still holding tightly to mine
Not a good start, drop 20%
lucky I sold mine ytd at 3.3But still early in the morning, fingers crossed it will bounce back and fly
goldnut
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Not a good start, drop 20%
But still early in the morning, fingers crossed it will bounce back and fly
Profit taking + Russian announcement = huge drop.
Russian announcement most likely bullsh!t which means we may see a gradual rise back up in the following week.
In any case, the end of Covid means less demand for PPE so I'm planning to exit by 4th quarter.
When Covid does end, what's going to rise will be airline stocks.
Shion
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UG Healthcare proposes placement of up to 7.5m shares to raise S$19.1m
UG Healthcare proposes placement of up to 7.5m shares to raise S$19.1m
https://www.businesstimes.com.sg/co...-placement-of-up-to-75m-shares-to-raise-s191m
CATALIST-LISTED glove manufacturer UG Healthcare Corporation has proposed to place up to 7.5 million shares at S$2.545 apiece to raise a total sum of S$19.1 million.
The placement price represents a discount of about 9.9 per cent to the volume-weighted average price of S$2.8247 for trades done on the Singapore Exchange on Tuesday.
UG Healthcare said in a bourse filing on Tuesday night that it had decided to undertake the proposed placement to strengthen the group’s financial position and flexibility to capitalise on growth opportunities.
It plans to use 85-90 per cent of the net proceeds to fund capital expenditure for the growth of the group’s business, including the construction of factory buildings and glove production lines, and the other 10-15 per cent for general working capital purposes, including meeting general overheads and other operating expenses of the group.
The placement shares represent 3.8 per cent of UG Healthcare’s existing share capital, and will represent 3.7 per cent of its enlarged share capital.
The proposed placement is not underwritten and will be undertaken by way of an exempt offering in Singapore.
The joint placement agents are CGS-CIMB Securities (Singapore) and SAC Capital, which have agreed to procure subscriptions on a best efforts basis.
UG Healthcare has also entered into a share lending agreement with controlling shareholder Zen UG to borrow 7.5 million shares to facilitate delivery of the placement shares to the potential subscribers.
UG Healthcare plans to later allot and issue to Zen UG an equivalent number of new shares as repayment for the loan securities. No fees will be payable, and no collateral will be provided by UG Healthcare to Zen UG.
Shares of UG Healthcare were trading at S$2.86 as at 10.02am on Wednesday, down S$0.02 or 0.7 per cent.
UG Healthcare proposes placement of up to 7.5m shares to raise S$19.1m
https://www.businesstimes.com.sg/co...-placement-of-up-to-75m-shares-to-raise-s191m
CATALIST-LISTED glove manufacturer UG Healthcare Corporation has proposed to place up to 7.5 million shares at S$2.545 apiece to raise a total sum of S$19.1 million.
The placement price represents a discount of about 9.9 per cent to the volume-weighted average price of S$2.8247 for trades done on the Singapore Exchange on Tuesday.
UG Healthcare said in a bourse filing on Tuesday night that it had decided to undertake the proposed placement to strengthen the group’s financial position and flexibility to capitalise on growth opportunities.
It plans to use 85-90 per cent of the net proceeds to fund capital expenditure for the growth of the group’s business, including the construction of factory buildings and glove production lines, and the other 10-15 per cent for general working capital purposes, including meeting general overheads and other operating expenses of the group.
The placement shares represent 3.8 per cent of UG Healthcare’s existing share capital, and will represent 3.7 per cent of its enlarged share capital.
The proposed placement is not underwritten and will be undertaken by way of an exempt offering in Singapore.
The joint placement agents are CGS-CIMB Securities (Singapore) and SAC Capital, which have agreed to procure subscriptions on a best efforts basis.
UG Healthcare has also entered into a share lending agreement with controlling shareholder Zen UG to borrow 7.5 million shares to facilitate delivery of the placement shares to the potential subscribers.
UG Healthcare plans to later allot and issue to Zen UG an equivalent number of new shares as repayment for the loan securities. No fees will be payable, and no collateral will be provided by UG Healthcare to Zen UG.
Shares of UG Healthcare were trading at S$2.86 as at 10.02am on Wednesday, down S$0.02 or 0.7 per cent.
Shion
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UG Healthcare raises $19.1 million in share placement
UG Healthcare raises $19.1 million in share placement
https://www.theedgesingapore.com/news/company-news/ug-healthcare-raises-191-million-share-placement
Disposable gloves manufacturer UG Healthcare Corporation has successfully raised $19.1 million through its share placement.
The placement was oversubscribed by over 2.5 times. The gross proceeds of the placement will be used for the company’s capacity expansion plans as well as general working capital purposes.
On August 18, the company proposed a placement of up to 7.5 million fully paid-up ordinary shares at the placement price of $2.545 following the placement agreement it entered with CGS-CIMB Securities (Singapore) and SAC Capital.
The placement price represents a discount of some 9.9% to the volume weighted average price of $2.8247 per share on August 18.
The 7.5 million ordinary shares placed represent an approximate 3.82% of the existing issued share capital of 196.1 million shares. It will represent about 3.68% of the enlarged issued share capital of 203.6 million shares.
CGS-CIMB Securities (Singapore) and SAC Capital are the joint placement agents for this placement.
Shares in UG Healthcare closed 4 cents higher, or 1.5% up, at $2.69 on August 21.
UG Healthcare raises $19.1 million in share placement
https://www.theedgesingapore.com/news/company-news/ug-healthcare-raises-191-million-share-placement
Disposable gloves manufacturer UG Healthcare Corporation has successfully raised $19.1 million through its share placement.
The placement was oversubscribed by over 2.5 times. The gross proceeds of the placement will be used for the company’s capacity expansion plans as well as general working capital purposes.
On August 18, the company proposed a placement of up to 7.5 million fully paid-up ordinary shares at the placement price of $2.545 following the placement agreement it entered with CGS-CIMB Securities (Singapore) and SAC Capital.
The placement price represents a discount of some 9.9% to the volume weighted average price of $2.8247 per share on August 18.
The 7.5 million ordinary shares placed represent an approximate 3.82% of the existing issued share capital of 196.1 million shares. It will represent about 3.68% of the enlarged issued share capital of 203.6 million shares.
CGS-CIMB Securities (Singapore) and SAC Capital are the joint placement agents for this placement.
Shares in UG Healthcare closed 4 cents higher, or 1.5% up, at $2.69 on August 21.
Shion
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UG Healthcare proposes 1-for-3 stock split
UG Healthcare proposes 1-for-3 stock split
https://www.businesstimes.com.sg/companies-markets/ug-healthcare-proposes-1-for-3-stock-split
CATALIST-listed Malaysian glove maker UG Healthcare is proposing a share split of every one existing share into three shares, on a record date to be determined by the board later.
The proposed stock split will reduce the price of each board lot and give investors greater flexibility in terms of the size of their trades, enhancing trading liquidity, the board said. It will also broaden the base of shareholders.
Currently, UG Healthcare has an issued and paid-up share capital of S$58.7 million comprising 205 million shares. Following the completion of the proposed share split, an additional 410 million shares will be allotted and issued.
For illustration purposes only and assuming that the proposed stock split had been completed on Aug 31, the theoretical price for the shares traded after the split would be S$0.75223 (based on the lowest daily weighted average price of the shares for trades done from July 31 to Aug 30).
The stock split is subject to shareholders' approval and a circular will be despatched in due course to provide shareholders with information relating to the proposed stock split, together with the notice of the general meeting.
On Aug 11, the group had recommended a final dividend of S$0.00714 per share amounting to a total amount of approximately S$1.4 million, subject to shareholders' approval at the forthcoming annual general meeting.
Subject to shareholders' approval being received for the proposed stock split, the final dividend will be adjusted to S$0.00238 per share. The total amount of dividends payable will be increased to about S$1.5 million after taking into consideration 7.5 million shares and 1.4 million shares issued pursuant to the placement exercise and the exercise of share options pursuant to the Unigloves Employee Share Option Scheme. The placement would raise S$19.1 million, UG Healthcare had said in late August.
UG Healthcare shares rose five Singapore cents or 2.24 per cent to S$2.28 on Monday.
UG Healthcare proposes 1-for-3 stock split
https://www.businesstimes.com.sg/companies-markets/ug-healthcare-proposes-1-for-3-stock-split
CATALIST-listed Malaysian glove maker UG Healthcare is proposing a share split of every one existing share into three shares, on a record date to be determined by the board later.
The proposed stock split will reduce the price of each board lot and give investors greater flexibility in terms of the size of their trades, enhancing trading liquidity, the board said. It will also broaden the base of shareholders.
Currently, UG Healthcare has an issued and paid-up share capital of S$58.7 million comprising 205 million shares. Following the completion of the proposed share split, an additional 410 million shares will be allotted and issued.
For illustration purposes only and assuming that the proposed stock split had been completed on Aug 31, the theoretical price for the shares traded after the split would be S$0.75223 (based on the lowest daily weighted average price of the shares for trades done from July 31 to Aug 30).
The stock split is subject to shareholders' approval and a circular will be despatched in due course to provide shareholders with information relating to the proposed stock split, together with the notice of the general meeting.
On Aug 11, the group had recommended a final dividend of S$0.00714 per share amounting to a total amount of approximately S$1.4 million, subject to shareholders' approval at the forthcoming annual general meeting.
Subject to shareholders' approval being received for the proposed stock split, the final dividend will be adjusted to S$0.00238 per share. The total amount of dividends payable will be increased to about S$1.5 million after taking into consideration 7.5 million shares and 1.4 million shares issued pursuant to the placement exercise and the exercise of share options pursuant to the Unigloves Employee Share Option Scheme. The placement would raise S$19.1 million, UG Healthcare had said in late August.
UG Healthcare shares rose five Singapore cents or 2.24 per cent to S$2.28 on Monday.
Shion
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UG Healthcare to set up third manufacturing facility in Negeri Sembilan
UG Healthcare to set up third manufacturing facility in Negeri Sembilan
https://www.businesstimes.com.sg/co...ird-manufacturing-facility-in-negeri-sembilan
GLOVE manufacturer UG Healthcare Corporation has started work on a new manufacturing facility in Malaysia that will boost its production capacity by 1.2 billion pieces of gloves per annum.
In filings to the Singapore Exchange on Tuesday, the group said it acquired the land for the facility through its acquisition of UG Engineering, a company incorporated for the purpose of buying the property.
UG Engineering bought the property in January for RM5 million (S$1.65 million) and remained dormant until UG Healthcare purchased both the subsidiary and property.
The property is a vacant leasehold industrial plot measuring approximately 17,233 square metres. It is located near UG Healthcare's two manufacturing plants in Seremban in the state of Negeri Sembilan, which the company said would boost its economies of scale.
UG Healthcare executive director and finance director Lee Jun Yih said work has started on the new facility, which is expected to be completed by the end of June 2021.
With the additional production capacity of 1.2 billion pieces per annum, UG Healthcare's total anticipated production capacity will increase to 4.6 billion pieces of gloves per annum, a 59 per cent increase from the current capacity of 2.9 billion pieces of gloves per annum.
"Having invested and strengthened our distribution network in key strategic markets over the last few years, we believe it is timely for us to expand our production capacity to narrow the gap between our upstream manufacturing supply and downstream distribution market demand," Mr Lee said.
UG Healthcare to set up third manufacturing facility in Negeri Sembilan
https://www.businesstimes.com.sg/co...ird-manufacturing-facility-in-negeri-sembilan
GLOVE manufacturer UG Healthcare Corporation has started work on a new manufacturing facility in Malaysia that will boost its production capacity by 1.2 billion pieces of gloves per annum.
In filings to the Singapore Exchange on Tuesday, the group said it acquired the land for the facility through its acquisition of UG Engineering, a company incorporated for the purpose of buying the property.
UG Engineering bought the property in January for RM5 million (S$1.65 million) and remained dormant until UG Healthcare purchased both the subsidiary and property.
The property is a vacant leasehold industrial plot measuring approximately 17,233 square metres. It is located near UG Healthcare's two manufacturing plants in Seremban in the state of Negeri Sembilan, which the company said would boost its economies of scale.
UG Healthcare executive director and finance director Lee Jun Yih said work has started on the new facility, which is expected to be completed by the end of June 2021.
With the additional production capacity of 1.2 billion pieces per annum, UG Healthcare's total anticipated production capacity will increase to 4.6 billion pieces of gloves per annum, a 59 per cent increase from the current capacity of 2.9 billion pieces of gloves per annum.
"Having invested and strengthened our distribution network in key strategic markets over the last few years, we believe it is timely for us to expand our production capacity to narrow the gap between our upstream manufacturing supply and downstream distribution market demand," Mr Lee said.
Shion
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‘Buy’ UG Healthcare on the expectation of 50x higher profits: CGS-CIMB
‘Buy’ UG Healthcare on the expectation of 50x higher profits: CGS-CIMB
https://www.theedgesingapore.com/ca...hcare-expectation-50x-higher-profits-cgs-cimb
CGS-CIMB analyst Ong Khang Chuen says he “remains positive” on UG Healthcare (UGHC) as he believes the global shortage of gloves will persist till at least end 2021, given the “gravity” of the Covid-19 outbreak.
On the back of continued demand for gloves due to the acceleration of the pandemic globally and the possibility of a second wave of infections in Europe, inventory levels across the supply chain - notably for distributors and end-users - remain low due to extended order lead times for glove manufacturers.
As such, he expects glove demand to remain high in the medium term even with the eventual discovery of a vaccine.
This is given current vaccine manufacturing and distribution constraints hampering mass availability, a structural increase in glove demand given increasing hygiene awareness, and a need to restock inventory across supply chains.
In a September 25 report, Ong estimates a 50x jump y-o-y in the company’s 1Q21 net profit to $15.7 million. Accordingly, he expects “even stronger earnings” in subsequent quarters ahead, and forecasts UGHG to record net profit of $70.5 million (a 400% growth y-o-y) in FY21F.
The growth, Ong explains, is likely to be driven by a further increase in ASP, higher sales volume, and higher economies of scale.
“We estimate ASPs could rise by 10-15% monthly between Sep to Nov 2020, versus 10-12% monthly from May to Aug. We understand the recent hike in nitrile glove (around 40% of FY20 revenue contribution) prices was catalysed by raw material shortages,” he says.
“Meanwhile, latex glove (around 50% revenue contribution) prices are also on the rise as more end-users from developed countries are increasingly open to switching from nitrile to latex gloves given the long order lead time for nitrile. We forecast UGHC to record ASP growth of +69% yoy in FY21F,” he adds.
Ong has thus maintained his “add” or “buy” call on the counter with an unchanged target price of $4.80.
“UGHC remains our preferred pick among Singapore-listed rubber glove companies, due to its undemanding valuation (a 52% discount to the Malaysia-listed glove sector average CY21F P/E of 16.7x) and OBM business model, which allows it to garner stronger ASP upside potential vs. its peers,” Ong says.
“Potential re-rating catalysts include higher-than-expected increase in selling prices; downside risks include earlier-than-expected widespread availability of a vaccine for Covid-19,” he adds.
As at 12.43pm, shares of UGHC were trading at $2.61, with a FY21 price-to-book ratio of 3.83 and dividend yield of 1.37%.
‘Buy’ UG Healthcare on the expectation of 50x higher profits: CGS-CIMB
https://www.theedgesingapore.com/ca...hcare-expectation-50x-higher-profits-cgs-cimb
CGS-CIMB analyst Ong Khang Chuen says he “remains positive” on UG Healthcare (UGHC) as he believes the global shortage of gloves will persist till at least end 2021, given the “gravity” of the Covid-19 outbreak.
On the back of continued demand for gloves due to the acceleration of the pandemic globally and the possibility of a second wave of infections in Europe, inventory levels across the supply chain - notably for distributors and end-users - remain low due to extended order lead times for glove manufacturers.
As such, he expects glove demand to remain high in the medium term even with the eventual discovery of a vaccine.
This is given current vaccine manufacturing and distribution constraints hampering mass availability, a structural increase in glove demand given increasing hygiene awareness, and a need to restock inventory across supply chains.
In a September 25 report, Ong estimates a 50x jump y-o-y in the company’s 1Q21 net profit to $15.7 million. Accordingly, he expects “even stronger earnings” in subsequent quarters ahead, and forecasts UGHG to record net profit of $70.5 million (a 400% growth y-o-y) in FY21F.
The growth, Ong explains, is likely to be driven by a further increase in ASP, higher sales volume, and higher economies of scale.
“We estimate ASPs could rise by 10-15% monthly between Sep to Nov 2020, versus 10-12% monthly from May to Aug. We understand the recent hike in nitrile glove (around 40% of FY20 revenue contribution) prices was catalysed by raw material shortages,” he says.
“Meanwhile, latex glove (around 50% revenue contribution) prices are also on the rise as more end-users from developed countries are increasingly open to switching from nitrile to latex gloves given the long order lead time for nitrile. We forecast UGHC to record ASP growth of +69% yoy in FY21F,” he adds.
Ong has thus maintained his “add” or “buy” call on the counter with an unchanged target price of $4.80.
“UGHC remains our preferred pick among Singapore-listed rubber glove companies, due to its undemanding valuation (a 52% discount to the Malaysia-listed glove sector average CY21F P/E of 16.7x) and OBM business model, which allows it to garner stronger ASP upside potential vs. its peers,” Ong says.
“Potential re-rating catalysts include higher-than-expected increase in selling prices; downside risks include earlier-than-expected widespread availability of a vaccine for Covid-19,” he adds.
As at 12.43pm, shares of UGHC were trading at $2.61, with a FY21 price-to-book ratio of 3.83 and dividend yield of 1.37%.
Shion
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Hot stock: UG Healthcare up 9% after Malaysia EPF Board raises stake
Hot stock: UG Healthcare up 9% after Malaysia EPF Board raises stake
https://www.businesstimes.com.sg/co...re-up-9-after-malaysia-epf-board-raises-stake
SHARES of Malaysian glove manufacturer UG Healthcare Corporation jumped on Monday amid active trading, following news that the Employees Provident Fund (EPF) Board of Malaysia had become a substantial shareholder with a direct interest of 5.29 per cent, up from its previous 4.99 per cent stake.
The stock began the day at S$0.96 before reaching a high of S$1.04 at 1.16pm. It was trading at S$1.02 as at 3.51pm, up S$0.085 or 9.1 per cent from Friday’s close.
About 38.8 million shares worth S$38.7 million changed hands. The stock was the most traded by volume on the Singapore bourse on Monday, and the second most traded by value.
The EPF Board had acquired 605,000 UG Healthcare shares on the open market at an average price of S$2.55 apiece for a total consideration of about S$1.5 million, Catalist-listed UG Healthcare said in a regulatory filing last Thursday. (see amendment note)
Before its stock split which took effect on Friday, the counter last traded at S$2.55 last Tuesday. When proposing the stock split in August, UG Healthcare said then that the move would enhance its trading liquidity and broaden its shareholder base.
Meanwhile, the EPF Board also became a substantial shareholder of mainboard-listed Riverstone Holdings, UG Healthcare's glove-making peer, on Sept 17.
Hot stock: UG Healthcare up 9% after Malaysia EPF Board raises stake
https://www.businesstimes.com.sg/co...re-up-9-after-malaysia-epf-board-raises-stake
SHARES of Malaysian glove manufacturer UG Healthcare Corporation jumped on Monday amid active trading, following news that the Employees Provident Fund (EPF) Board of Malaysia had become a substantial shareholder with a direct interest of 5.29 per cent, up from its previous 4.99 per cent stake.
The stock began the day at S$0.96 before reaching a high of S$1.04 at 1.16pm. It was trading at S$1.02 as at 3.51pm, up S$0.085 or 9.1 per cent from Friday’s close.
About 38.8 million shares worth S$38.7 million changed hands. The stock was the most traded by volume on the Singapore bourse on Monday, and the second most traded by value.
The EPF Board had acquired 605,000 UG Healthcare shares on the open market at an average price of S$2.55 apiece for a total consideration of about S$1.5 million, Catalist-listed UG Healthcare said in a regulatory filing last Thursday. (see amendment note)
Before its stock split which took effect on Friday, the counter last traded at S$2.55 last Tuesday. When proposing the stock split in August, UG Healthcare said then that the move would enhance its trading liquidity and broaden its shareholder base.
Meanwhile, the EPF Board also became a substantial shareholder of mainboard-listed Riverstone Holdings, UG Healthcare's glove-making peer, on Sept 17.
Shion
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UG Healthcare posts 74-fold increase in Q1 net profit to S$22.7m
UG Healthcare posts 74-fold increase in Q1 net profit to S$22.7m
https://www.businesstimes.com.sg/co...ts-74-fold-increase-in-q1-net-profit-to-s227m
GLOVE manufacturer UG Healthcare Corporation on Thursday reported net profit of S$22.7 million for the first fiscal quarter ended September, a 74-fold increase from net profit of S$305,000 in the corresponding quarter last year.
The group's latest quarterly profit had also exceeded its FY2020 net profit of S$13.4 million, said the group in a bourse filing.
UG Healthcare's revenue for the quarter rose 170.6 per cent to S$71.2 million from S$26.3 million in the year-ago period, due to a higher volume of gloves sold as well as higher average selling prices on the back of stronger demand for disposable gloves and supply constraints.
The group's revenue contributions from Europe, South America, Africa and Asia each more than doubled in the period under review, while the North America and others regions booked increases of 28.3 per cent and 41.3 per cent respectively.
Segmentally, UG Healthcare said its downstream distribution business has continued to see growing demand in all key markets for both developed and developing countries.
The upstream manufacturing business is also operating at its "optimum efficiency" of 2.9 billion pieces of gloves per annum, producing both nitrile and natural latex examination gloves. Some 85 per cent of these gloves are sold in UG Healthcare's own brand, Unigloves, through its downstream distribution companies, the company added.
On the back of improved margins for both its upstream and downstream business segments, UG Healthcare's gross margin for the quarter came in at 60.6 per cent, up by 41.7 percentage points year-on-year.
The company said that operating expenses for the quarter were "relatively stable", and its finance costs had been reduced due to lower borrowings.
Short-term borrowings were also reduced significantly on the back of stronger operating cash flow, and the company remains in a net cash position as at end-September.
UG Healthcare said it is on track to achieve its production capacity expansion plans to cope with the higher demand for gloves that was brought about by the Covid-19 pandemic. On Sept 8, the company said it has commenced work on a new manufacturing facility in Malaysia that will boost its production capacity by 1.2 billion pieces of gloves per annum.
The company is also looking to expand its production lines to produce an additional 500 million pieces of gloves per annum, which would bring its total production capacity to 3.4 billion pieces of gloves by end-March 2021.
UG Healthcare executive director and finance director Lee Jun Yih said: "We believe that our group's strategy will drive production volume in our upstream manufacturing, and enhance flexibility and sustainability in our business operations."
He added that the company is also expecting to benefit from further economies of scale beyond FY2021 with the additional capacity.
UG Healthcare said it has used some S$4.6 million out of the S$18.4 million in net proceeds that it had raised from the placement of 7.5 million new shares that was completed on Aug 21.
The group has utilised S$3.7 million of this amount for capital expenditure for production capacity expansion plans, while the remaining S$0.9 million was used for general working capital purposes.
UG Healthcare shares closed at S$0.98 on Thursday prior to the results announcement, up 2.6 per cent or 2.5 Singapore cents.
UG Healthcare posts 74-fold increase in Q1 net profit to S$22.7m
https://www.businesstimes.com.sg/co...ts-74-fold-increase-in-q1-net-profit-to-s227m
GLOVE manufacturer UG Healthcare Corporation on Thursday reported net profit of S$22.7 million for the first fiscal quarter ended September, a 74-fold increase from net profit of S$305,000 in the corresponding quarter last year.
The group's latest quarterly profit had also exceeded its FY2020 net profit of S$13.4 million, said the group in a bourse filing.
UG Healthcare's revenue for the quarter rose 170.6 per cent to S$71.2 million from S$26.3 million in the year-ago period, due to a higher volume of gloves sold as well as higher average selling prices on the back of stronger demand for disposable gloves and supply constraints.
The group's revenue contributions from Europe, South America, Africa and Asia each more than doubled in the period under review, while the North America and others regions booked increases of 28.3 per cent and 41.3 per cent respectively.
Segmentally, UG Healthcare said its downstream distribution business has continued to see growing demand in all key markets for both developed and developing countries.
The upstream manufacturing business is also operating at its "optimum efficiency" of 2.9 billion pieces of gloves per annum, producing both nitrile and natural latex examination gloves. Some 85 per cent of these gloves are sold in UG Healthcare's own brand, Unigloves, through its downstream distribution companies, the company added.
On the back of improved margins for both its upstream and downstream business segments, UG Healthcare's gross margin for the quarter came in at 60.6 per cent, up by 41.7 percentage points year-on-year.
The company said that operating expenses for the quarter were "relatively stable", and its finance costs had been reduced due to lower borrowings.
Short-term borrowings were also reduced significantly on the back of stronger operating cash flow, and the company remains in a net cash position as at end-September.
UG Healthcare said it is on track to achieve its production capacity expansion plans to cope with the higher demand for gloves that was brought about by the Covid-19 pandemic. On Sept 8, the company said it has commenced work on a new manufacturing facility in Malaysia that will boost its production capacity by 1.2 billion pieces of gloves per annum.
The company is also looking to expand its production lines to produce an additional 500 million pieces of gloves per annum, which would bring its total production capacity to 3.4 billion pieces of gloves by end-March 2021.
UG Healthcare executive director and finance director Lee Jun Yih said: "We believe that our group's strategy will drive production volume in our upstream manufacturing, and enhance flexibility and sustainability in our business operations."
He added that the company is also expecting to benefit from further economies of scale beyond FY2021 with the additional capacity.
UG Healthcare said it has used some S$4.6 million out of the S$18.4 million in net proceeds that it had raised from the placement of 7.5 million new shares that was completed on Aug 21.
The group has utilised S$3.7 million of this amount for capital expenditure for production capacity expansion plans, while the remaining S$0.9 million was used for general working capital purposes.
UG Healthcare shares closed at S$0.98 on Thursday prior to the results announcement, up 2.6 per cent or 2.5 Singapore cents.
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