Dear all, UG Healthcare (“UG”) recently caught my attention. It has tumbled approximately 20% from an intraday high of around $1.15 on 7 Aug 2020 to close $0.915 on 26 Oct 2020. The doji formation on 26 Oct 20 on good volume may be an early indication that selling may abate in the near term. The recent weakness in UG’s share price is likely attributed to profit taking in the share prices of its Malaysia listed peers and occasional news on the development of vaccines which may result in demand for gloves and consequently their average selling price (“ASP”) falling off the cliff. I have outlined six interesting aspects of UG which caught my attention.

1. Average analyst target $1.49; implies 63% potential upside

Based on Figure 1 below, two analysts cover UG with target prices ranging $1.38 – 1.60. Average analyst target is at $1.49, implying a hefty...