Brokers' take

UG Healthcare | Buy (maintained) Aug 28 close: S$0.177 Target price: S$0.30 RHB Research Institute, Aug 28

Full-year revenue was up 17 per cent from the previous year. The new production facility - which achieved full commercialisation at end January - led to an additional annual capacity of 500 million pieces of gloves.

There was overall production efficiency and economies of scale, which contributed to the 47 per cent rise in FY2019 gross profit. UG's earnings for this period stood at S$0.54 million, down 59 per cent, mainly due to higher marketing, distribution, administrative, and finance expenses. Whilst FY2019 net profit disappointed, the gross profit rise reflects strength.