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‘Buy’ UG Healthcare on the expectation of 50x higher profits: CGS-CIMB

Lim Hui Jie
Lim Hui Jie9/28/2020 01:36 PM GMT+08  • 3 min read
‘Buy’ UG Healthcare on the expectation of 50x higher profits: CGS-CIMB
CGS-CIMB remains positive on UG Healthcare, and forecasts a strong earnings showing as glove prices rise due to Covid-19
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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.

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