UG Healthcare: Stock price has fallen 35% in the past 2 days. In response, Maybank-KE hosted a conference call with management and our clients. Management assured that the company remains in good shape and addressed concerns. Production, pricing, margin and costs are within the targeted range. Maybank-KE expect results, due for release next week to show possible upside surprises due to strong USD & low rubber price. UG is now trading at 10x FY16E P/E, >60% discount to peers average.
The house maintain BUY & TP of SGD0.41, 46% upside.
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