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RHB trims UG Healthcare target price to 27 cents on 'tougher quarters ahead'

Atiqah Mokhtar
Atiqah Mokhtar11/15/2021 4:28 PM GMT+08  • 3 min read
RHB trims UG Healthcare target price to 27 cents on 'tougher quarters ahead'
UG Healthcare is expected to book weaker earnings in subsequent quarters due to an ASP downtrend.
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RHB Group Research has reiterated its “neutral” rating for UG Healthcare albeit with a lower target price of 27 cents, from 37 cents previously.

The way the RHB team sees it, UG Healthcare will book weaker earnings in subsequent quarters due to a downtrend in average selling prices (ASPs).

In a Nov 15 research note, the team highlights that UG Healthcare’s 1QFY2022 ended September performance was heavily impacted by production losses following the halt in manufacturing operations after Malaysia’s Enhanced Movement Control Order (EMCO) was imposed last July.

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