Samurai Trader
2021-03-16

$UG HEALTHCARE CORPORATION LTD(8K7.SI)$Total UG share I’m holding is around 89 lot with an aggregate cost of $0.685

Why did I invest so much on UG? Because I study it’s financial and business plan and I like what I saw. First thing I would like to comment is in regards to UG special dividend. Special dividend are given to recognize the amazing result and profit as a result of Covid situation. I believe the management has decided on this after reducing their loan borrowings and setting aside some cash for possible future expansion plan. As an investor of a company, I believe many would like high dividend and high growth potentials but Unfortunately UG is still a mid size growing glove company and it is important that they keep expanding their production capability to keep up with the rest of its peer. It’s is also important to take note that the special dividend was announced for their 2H21 results. I strongly believe that the management will considera good dividend reward when they report their FY21 results somewhere in August this year. UG is grossly undervalue at today price and price has been suppress down due to concern of glove demand and price but I believe ASP and demand can still healthily maintained till 2022. People will ask me why buy UG when you can go for better glove company like STA, TG or RS in SGX? I think my answer to that is the it has that a M&A potential due to its wide distribution network and undervalued share price. DYODD

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Comments

  • Muchtolearn_
    2021-03-17
    Muchtolearn_
    Can’t agree more with your opinion. It’S impt to take note of its growth potential and short term fluctuation is just a little tardy Retail investor has to manage.
  • PTL_
    2021-03-21
    PTL_
    Hoping it wIll move up in coming weeks
  • 庭ST
    2021-10-08
    庭ST
    ?
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