Although glove prices are slowly moderating due to increased global supply, UG Healthcare is “too cheap to ignore”, says CGS-CIMB Research analyst Ong Khang Chuen. 

While Ong maintains his “add” call on the company, he is lowering the target price to $1.20 from $1.70 as prices are expected to trend downwards. 

“UG Healthcare continues to enjoy tailwinds of higher glove prices, and valuation is undemanding at 5.4x 2022F P/E, supported by net cash of $50 million,” writes Ong in his May 11 note. 

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