UG Healthcare Corp Ltd $SGX-41A
Research by CGS CIMB
ADD (no change): Price Target: S$1.20

"Too cheap to ignore"

■ 3QFY6/21 NP of S$34.3m (a 56-fold increase yoy) was in line, despite logistical disruptions which continued to hamper sales volume.
■ Earnings could continue on an uptrend in 4QFY21, as production capacity growth offsets a gradual decline in ASP.
■ UGHC trades at an undemanding valuation of 5.4x CY22F P/E, and backed by net cash of S$50m. Maintain Add, with a DCF-based TP of S$1.20.

Ong Khang Chuen, CFA
T (65) 6210 8685
E khangchuen.ong@cgs-cimb.com