PhillipCapital’s research analyst Vivian Ye has identified three positive reasons for investors to invest in independent lubricant seller, United Global.

In its initiation report that is non-rated, the brokerage highlighted that United Global intends to leverage United Oil Company’s (UOC) new joint venture (JV) with Madrid-listed Repsol’s international brand presence to expand UOC’s scale and reach. UOC contributed US$5.39 million ($7.23 million) to United Global’s net profit for the FY2020. Its revenue fell 18.2% y-o-y to US$89.7 million due to lower manufacturing average selling prices (ASPs) and trading revenue.

UOC was a 100% subsidiary of United Global before the latter divested a 40% stake to Repsol.

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