Sunday 06 Oct 2024
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KUALA LUMPUR (April 17): Hong Leong Investment Bank (HLIB) has maintained its “buy” rating on UMediC Group Bhd (UMC) at 62.5 sen with an unchanged target price (TP) of 91 sen and said UMC's expansion efforts post completion of its new facility aim to double manufacturing capacity to 600,000 units per month by Dec 2024.

In a company update on Wednesday, the research house said it also sees potential for further expansion beyond this expansion initiative, considering the robust demand for own manufactured products.

“Its pivot towards healthcare services, evidenced by UMC Care Centre, also underscores its diversification strategy.

“Our TP represents a P/E multiple of 26.5x, tagged to its CY24f EPS of 3.4 sen,” it said.

HLIB said it continues to like UMC, driven by its strong capacity expansion efforts.

“The recent Main Market transfer approval is also expected to garner greater institutional interest and bolster share price upon completion.

“We advocate investors eyeing long-term growth to accumulate on share price weakness,” it said.

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