The Singapore research team from RHB Research Group has downgraded UG Healthcare to “neutral” from “buy” with a lower discounted cash flow (DCF)-derived target price of 61 cents from 75 cents previously.

The downgrade comes as Malaysia announced the extension of Phase 1 of the National Recovery Plan (NRP1).

Due to the extension of the NRP1, UG Healthcare’s manufacturing plants in Seremban and Negeri Sembilan will have to comply with the current restrictions, which may have a negative impact on UG Healthcare’s near-term earnings.

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