If you guys do a deep research on UG Healthcare (Malaysia’s company listed in Singapore), you guys will realize that it is quite similar to Malaysia listed Supermax and Top Glove. The reason Supermax and Top Glove up alot since Supermax release their quarter report is because these 2 companies are distributing their own brand of glove which lead to higher profit margin. You guys can understand further from the video as per below link. After watching, you guys can go read UG's report and you guys will realize that UG has their own distribution center at China, Nigeria, UK, German, US and Brazil. Despite UG didnt own 100% of share of these companies, but definitely it helps UG to have better profit. Also, these coutries are badly affected by Covid-19.
Also, not to neglect that Ug Healthcare German is also selling mask, PPE, disinfection, protective clothes etc. All these products are high demand product during this Covid-19. Please refer to the link to understand better.
Besides, UG Healthcare Nigeria is also very interesting distribution center as it is selling the similar products that UG Healthcare German is selling but on top of that, it is also selling infra-red thermometer which is also high demand. Please refer to the link below.
The link below will enable you to understand better about Uniglove UK. Even though it is old news but it definitely will be benefited during this pandemic as it is Europe’s first antimicrobial nitrile glove.
If we do comparison between Rubberex Malaysia and UG Healthcare. UG healthcare is lagging behind. Rubberex market cap = (rm3.56/3.06) * 252195617 = SGD 293,404,051 UG heathcare market cap =(SGD 0.47 * 196092856)= SGD 92,163,642
UG yearly capacity is around 3B where Rubberex only 2B.
So if we use production capacity ratio to market cap as below calculation. UG should worth SGD (293404051 (Rubberex’s market cap) * 3B (UG’s capacity)) / 2b (Rubberex’s market cap) = 214685891
UG’s potential share price = 214685891 / 196092856 (no of UG’s issued share)= SGD 1.09
If we do comparison between Careplus Malaysia and UG Healthcare. UG healthcare is also lagging behind. Careplus market cap = (rm1.40/3.06) * 531,359,799 = SGD 243,105,790 UG heathcare market cap =(SGD 0.47 * 196092856)= SGD 92,163,642
So if we use production capacity ratio to market cap as below calculation. UG should worth SGD (243105790 (careplus’ market cap) * 3B (UG’s capacity)) / 4.1B (careplus’ capacity) = 177882285.4
UG’s potential share price = 177882285.4 / 196092856 (no of UG’s issued share) = SGD 0.907
Even though careplus produce 1B pcs extra compared to UG healthcare, but UG healthcare will benefitted from it’s own brand of glove as well as it’s distribution centers in UK, Brazil and Nigeria are selling others PPE and tools which are badly needed during this pandemic.
If we use the method of one of the Malaysia’s famous investor to calculation the price per glove, UG healthcare is on 0.09 per glove which is much more cheaper compared to peers.
Even though the last quarter report seems like “poor”, but it was mainly affected by the production modification cost where the board has decided to on hold the modification in order to cope with the sudden spike of demand. Do take note that the modification at the end will benefit the group as well. UG has reported positive earning for the last 3 FY. In fact, increase of marketing expenses is good for the company in long run as once everyone know about “Uniglove”, the marketing expenses eventually will come back and profit will go up.
Most likely August report will have flying colour result.
Riverstone hit a new record high today at $2.65 before closing at $2.61. After weeks of consolidation with strong support at $2.30, there is definitely more upside. All 3 research house gave a TP of $3.12, I think it is a v fair TP.
If supermax release a flying colour QR report, riverstone will likely have a flying colour report. Very soon we will not able to see riverstone below $3.
i think there are more similar to Hartalega as both as the leading gross margin company in the world. Just that i cannot figure out what is the main raw material that constitutes their cost of good sold. Anyone?
I think Bryan is right as Riverstone do have their own brand as well although not as good as UG in terms of OBM %.
Ninja - I think the main raw material cost for Nitrile glove makers like Hartalega and Riverstone is Nitrile Butadiene Rubber (NBR) where price falls in tandem when crude oil price falls.
Most of the counters have posted good result and with riverstone production capacity which can on par with supermax. No way that riverstone is not making good profit in coming report. If use the 1st quarter EPS and assume without any growth in term of net profit. The share price is worth more than $3.50. But it is impossible without any growth for the revenue and profit as 1st quarter is refer to Jan till Mar and these 3 months are not the peak yet. More to comeeeeeeeeeeeeee.
As mentioned earlier, UG Healthcare has same business model as Supermax. Both of these company are OBM and have their own distribution center at different countries.
Below link is an article produced by a famous investor in Malaysia. We can use the similar method to apply on UG Healthcare.
There is very high possibility that UG has very good first half result as the share price going up non stop.
Coincidently that all their distribution centers are located at the countries that badly affected by Covid-19 such as Brazil, US, German and Nigeria.
If we search deeper, the direction of the company seems like toward a one stop solution model. If we google Uniglove Germany or Uniglove Nigeria, we can see that these distribution centers are selling glove, mask, disinfection under it's own brand - Uniglove. Please read the links below.
Not to neglected that Uniglove UK is also selling antimicrobial glove which is high demand for this pandemic as this glove can kill gems. So far in the market, only Hartalega which listed in Bursa Malaysia produces antimicrobial glove in large scale. In short, UG healthcare will be benefitted as UK is one of the country that badly impacted by Covid-19.
In conclusion, UG overall business will be benefitted as many of the product they are selling are high demand during this pandemic.
I agree on better profit of course for Riverstone & UG no doubt. I expect RM316 million revenue & RM70 million net profit for Riverstone. For UG, i really cannot get enough info on their ASP and OBM% that we are able to forecast from April-June quarter. I got info that their distribution centre/division can order gloves from Topglov/Harta or other manufacturers to OEM. So it is more complicated. Interesting...
So what about UG Healthcare which is OBM (Unigloves) and also have distribution centers at US, UK, German, Brazil and Nigeria? Besides glove, there are selling PPE and other healthcare products which are high demand during pandemic.
the vaccine news & force labour issue faced by TG gonna stay another 1 week at least. The next surge should be when the TG annnounce the detention cleared, estimated around 6-7 tradings day provided no further flaming on the vaccine.
4 heavenly Kings now too rich in valuation so it won't go double or triple anymore
Maximum up side will be another 50% to 80% at most
When Supermax was Rm1.73 we bought in. Now over Rm18.00 already Up a Whopping 1,000%
Best buy now is Careplus (0163) at Rm3.30
Careplus will expand by converting its warehouse to more glove lines. Plus it bought a Budget Hotel in Negeri Sembilan to convert it into Workers' hotel
Being able to avoid Topglove bad publicity due to labour issues it has wisely bought a nice facility to create a good image for foreign media
PLUS IT HAS EXPANSION IN BRAZIL
Now with
4 Billion Medical Gloves
6 Billion by year end
8 billion by end 2021
ITS LOCATION IN SENAWANG, N SEMBILAN IS PERFECT. VERY NEAR SEPANG INTERNATIONAL AIRPORT WHICH IT CAN EXPORT ITS GLOVES WORLD WIDE
These are the 3 Super growth glove stocks of Malaysia
1. Supermax. Profit jumped by 2,500%
2. Careplus ....faster than a Cheetah
3. Hlt. This one with latest cutting edge tech of Tripple Former Dipper liners will expand to 5.3 billion high quality medical exam gloves Can expect Hlt to grow by leaps and bounds
And one more is disinfectant and sanitizer company of Malaysia called Ancom ((4758)
"Today's Food For Thought: The Long Term view, the view from 30,000 feet, is the only way to make successful decisions. Short-term views are presented to give market participants a feel for the current situation. It should be noted that strategic investment decisions should NOT be based on any short-term views. These views contain a lot of noise and will lead an investor into whipsaw action that tends to detract from the overall performance."
Hi all, for the bonus issue 1:1 will automatically credit to our system ? I'm not sure how Maybank Kim Eng Pre-funded account works. Im new to SGX rules and also first time to trade in SGX. Please guide me ?
Most of the Europe country request resume natural gas supply from Russia in private as they can afford country daily operation without normal natural gas supply, Russia plan to increase military force to invade Ukraine recently without negotiation, Beijing full lock down confirm, all news from China insider govement.
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chiongster1234
41 posts
Posted by chiongster1234 > 2018-01-02 20:47 | Report Abuse
top glove increased one dollar already