SINGAPORE (April 24): RHB is initiating coverage on UG Healthcare with a “buy” recommendation and a target price of 32 Singapore cents, as the research house is positive on the long-term global demand growth for gloves, with demand rising at a 5.7% CAGR over the past 12 years.

In a Monday report, analyst Leng Seng Choon says, “Our expectations of an appreciating USD vs MYR would also indicate an improved earnings outlook for glove manufacturers.”

The RHB economics team expects USD/MYR to average 4.05 in 2H18 and 4.10 in 1Q19, mainly driven by the view that inflation could surprise on the upside, resulting in higher-than-expected interest rates that could benefit the USD... (Click here to read the full story)