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20 Must-See Numbers to Understand More About UG Healthcare Corporation Ltd

UG Healthcare Corporation Ltd (SGX: 41A) is a glove manufacturer, and its products are widely used in industries such as healthcare, food and beverage, and automotive.

The firm’s rivals in the industry include Riverstone Holdings Limited (SGX: AP4) and Top Glove (SGX: BVA).

UG Healthcare released its annual report for the financial year ended 30 June 2017 (FY2017) this week. Here are some statistics that investors might want to know about from the report.

Financial Figures

Revenue for FY2017 rose 10.9% year-on-year to a record of S$65.2 million, largely on the back of higher volume of gloves produced and sold through its global distribution network, as well as higher average selling prices of the gloves. Sales from Europe, its largest contributor, chipped in 48% of the total revenue at S$31.5 million, a growth of 7.9% year-on-year.

Despite the increase in revenue, the firm’s net profit fell 55.1% to S$2.4 million. This was mainly due to increases in raw materials costs and currency fluctuations.

The firm’s balance sheet weakened in FY2017. For the year, it had a net debt of S$15.3 million as compared to FY2016’s S$4.8 million.

Return on equity came in at 6.58%, a decline from 14.3% in the previous year.

For FY2017, the firm used S$7.1 million for its operating activities. In comparison, a year ago, net cash used in operations was S$1.4 million.

Dividend

There was no dividend declared for the latest financial year, but a dividend of 0.587 Singapore cent per share was dished out for FY2016.

FY2016’s dividend payout ratio was at 20.3%.

Manufacturing Capabilities

On top of producing natural latex and nitrile examination gloves under its Unigloves brand, the company manufactures third-party labels where the firm serves as an original equipment manufacturer. The firm sells its products to more than 50 countries.

UG Healthcare’s two manufacturing facilities located in Seremban, Malaysia produced 2.4 billion pieces of gloves in FY2017. The company is expanding its production facility to make an additional 500 million gloves, and this could create 2.9 billion gloves per annum by the end of FY2018.

The graph below shows the number of gloves produced over the years, including the projected capacity for FY2018:

Source: UG Healthcare Corporation Ltd Annual Report 2017

The new production facility could potentially increase its annual production capacity by around 1 billion gloves per year when it progressively achieves full production capacity.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Riverstone Holdings Limited. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.