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What’s next for UG Healthcare after a disappointing FY17

Michelle Zhu
Michelle Zhu9/4/2017 03:48 PM GMT+08  • 2 min read
What’s next for UG Healthcare after a disappointing FY17
SINGAPORE (Sept 4): Maybank Kim Eng Research is maintaining its “sell” call on UG Healthcare Corporation with a 16% lower price target of 21 cents while noting weak cost management and a weaker ability to pass on additional costs.
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SINGAPORE (Sept 4): Maybank Kim Eng Research is maintaining its “sell” call on UG Healthcare Corporation with a 16% lower price target of 21 cents while noting weak cost management and a weaker ability to pass on additional costs.

The new target price – which is based on 12 times FY18E earnings per share (EPS) estimates – represents an estimated 40% discount to its peers’ target price-earnings ratio (PER) of 22 times, which is due to the group’s comparatively smaller size and shorter listing track record.

This comes after the glove manufacturer and distributor’s FY17 earnings missed expectations by 19% on higher-than-expected administration expenses as well as weak contributions from associates.

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