UG Healthcare

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#11
There was an article posted just yesterday which highlight on the inventory level of UG, which can be found from the link below:

http://www.fool.sg/2014/12/03/1-importan...ould-note/

I have then do a comparison with Riverstone and Hartalega and noted it is true that UG's inventories turnover is rather high. But if we carefully look into the product mix, I think the better comparison for UG would be Supermax. Both UG and Supermax are mainly manufacture for their own brands and thus it probably make sense to have higher inventories level, it should not be compared with other OEM players where they probably tend keep lower inventories. Please correct me as I am no expert in this area Big Grin

Also would like to share a rather old article from Affin, in which they "believe there is no oversupply issue, and that oncoming supply can be absorbed by growing demand", though the effect of Ebola outbreak has not been put into consideration.

Having said all this, I have still little confidence with UG in view of the fact that the rest of valuebuddies are rather muted. But to satisfy my itching hands, I will go for a small subscription for the sake of fun, hit and run.

Happy IPOing!


Attached Files
.pdf   RUBBER GLOVES SU_AFFIN 20140326.PDF (Size: 168.3 KB / Downloads: 10)
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#12
(04-12-2014, 10:27 AM)valuebuddies Wrote: There was an article posted just yesterday which highlight on the inventory level of UG, which can be found from the link below:

http://www.fool.sg/2014/12/03/1-importan...ould-note/

I have then do a comparison with Riverstone and Hartalega and noted it is true that UG's inventories turnover is rather high. But if we carefully look into the product mix, I think the better comparison for UG would be Supermax. Both UG and Supermax are mainly manufacture for their own brands and thus it probably make sense to have higher inventories level, it should not be compared with other OEM players where they probably tend keep lower inventories. Please correct me as I am no expert in this area Big Grin

Let's me contribute on Roverstone and Hartalega brand. Both companies are selling their own brands too. "RS" brand for Riverstone. Hartalega should has its brand too, and the company has done a promotion of its brand on few emerging countries recently.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#13
I think most of the big manufacturers derives significant revenue from OEM than OBM, with the exception of Supermax. I recalled seeing an old reports which comparing among those big names that listed in Bursa and apparently Supermax is the outstanding one with more than 50/60% revenue derived from OBM, the rest (including Hartalega) just 20% or less. As for Riverstone, I presume that their OBM isn't strong. Why I think so is because if you were to do a search from Amazon or Ebay, you will find Unigloves but not RS gloves, despite Riverstone has bigger production capacity comparing to UG.

EDIT: report attached


Attached Files
.pdf   ALLIANCE -RUBBER GLOVE - 120208 - INITIATION (3).PDF (Size: 851.48 KB / Downloads: 18)
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#14
(04-12-2014, 05:34 PM)valuebuddies Wrote: I think most of the big manufacturers derives significant revenue from OEM than OBM, with the exception of Supermax. I recalled seeing an old reports which comparing among those big names that listed in Bursa and apparently Supermax is the outstanding one with more than 50/60% revenue derived from OBM, the rest (including Hartalega) just 20% or less. As for Riverstone, I presume that their OBM isn't strong. Why I think so is because if you were to do a search from Amazon or Ebay, you will find Unigloves but not RS gloves, despite Riverstone has bigger production capacity comparing to UG.

EDIT: report attached

Interesting findings. FYI, Riverstone business model is go direct to end-users, instead of via 3rd parties. I reckon RS brand is more for enterprise customers, rather for retail customers.

Hartalega follows a different model, via 3rd parties, either as OEM or OBM model.

For Riverstone, none of its customer has contributed more than 10% of revenue. Hartalega's top customer contributes 25% of sales, which is 50% previously before one of the major customers was acquired by the company.

The attached report is interesting, Thanks
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#15
Just a little reminder on a Global Brand Name listed down under:

Ansell

http://www.valuebuddies.com/thread-5849-...l#pid97030

This is the real stuff... without one of these leaders all the support industry players are nobody...

GG

(04-12-2014, 10:02 PM)CityFarmer Wrote:
(04-12-2014, 05:34 PM)valuebuddies Wrote: I think most of the big manufacturers derives significant revenue from OEM than OBM, with the exception of Supermax. I recalled seeing an old reports which comparing among those big names that listed in Bursa and apparently Supermax is the outstanding one with more than 50/60% revenue derived from OBM, the rest (including Hartalega) just 20% or less. As for Riverstone, I presume that their OBM isn't strong. Why I think so is because if you were to do a search from Amazon or Ebay, you will find Unigloves but not RS gloves, despite Riverstone has bigger production capacity comparing to UG.

EDIT: report attached

Interesting findings. FYI, Riverstone business model is go direct to end-users, instead of via 3rd parties. I reckon RS brand is more for enterprise customers, rather for retail customers.

Hartalega follows a different model, via 3rd parties, either as OEM or OBM model.

For Riverstone, none of its customer has contributed more than 10% of revenue. Hartalega's top customer contributes 25% of sales, which is 50% previously before one of the major customers was acquired by the company.

The attached report is interesting, Thanks
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#16
(04-12-2014, 10:13 PM)greengiraffe Wrote: Just a little reminder on a Global Brand Name listed down under:

Ansell

http://www.valuebuddies.com/thread-5849-...l#pid97030

This is the real stuff... without one of these leaders all the support industry players are nobody...

GG

Ansell is a key competitor defined for glove used in electronic sector, by Riverstone. One other key competitor is Kimberly-Clark. I am not sure the Ansell position in healthcare sector.

UG prospectus has provided a list of key competitors, but all from M'sia, and Ansell isn't one of them.

Do you happen to know the annual sale volume of Ansell for glove?
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#17
(05-12-2014, 11:01 AM)CityFarmer Wrote: Ansell is a key competitor defined for glove used in electronic sector, by Riverstone. One other key competitor is Kimberly-Clark. I am not sure the Ansell position in healthcare sector.

UG prospectus has provided a list of key competitors, but all from M'sia, and Ansell isn't one of them.

Do you happen to know the annual sale volume of Ansell for glove?

Ansell doesn't compete directly with the Malaysian glove makers. Most of its portfolio consists of reusable gloves in the chemical, construction and automotive industries with brands such as Hyflex, Alpha-Tec and Touch N Tuff. They recently announced a re-organization where their industrial division has been split into "Single-Use" and "Industrial". Even then, the single use gloves they own are mostly from their acquisition of BSSI in USA.

If you look at their medical division, they do examination gloves (which is the nitrile type), but their strength lies in surgical gloves which cannot easily be produced by the OEMs in Malaysia. Surgical gloves command a higher ASP and margin than examination gloves.

Ansell does not disclose sales volumes - you can check their latest AR 2014 (their year-end is in June 30). The best you can find from their presentation slides are the sale of gloves by brand and type (e.g. chemical-resistant).

http://www.ansell.com/en/About/Investor-...ments.aspx
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#18
Welcome back MW,

It has been a long time coming... Thanks for your detailed analysis.

Frankly, I m getting old and am not into all these detail analysis unless I have substantial interests in the stocks that I m interested.

Thank you again.

GG

(05-12-2014, 11:12 PM)Musicwhiz Wrote:
(05-12-2014, 11:01 AM)CityFarmer Wrote: Ansell is a key competitor defined for glove used in electronic sector, by Riverstone. One other key competitor is Kimberly-Clark. I am not sure the Ansell position in healthcare sector.

UG prospectus has provided a list of key competitors, but all from M'sia, and Ansell isn't one of them.

Do you happen to know the annual sale volume of Ansell for glove?

Ansell doesn't compete directly with the Malaysian glove makers. Most of its portfolio consists of reusable gloves in the chemical, construction and automotive industries with brands such as Hyflex, Alpha-Tec and Touch N Tuff. They recently announced a re-organization where their industrial division has been split into "Single-Use" and "Industrial". Even then, the single use gloves they own are mostly from their acquisition of BSSI in USA.

If you look at their medical division, they do examination gloves (which is the nitrile type), but their strength lies in surgical gloves which cannot easily be produced by the OEMs in Malaysia. Surgical gloves command a higher ASP and margin than examination gloves.

Ansell does not disclose sales volumes - you can check their latest AR 2014 (their year-end is in June 30). The best you can find from their presentation slides are the sale of gloves by brand and type (e.g. chemical-resistant).

http://www.ansell.com/en/About/Investor-...ments.aspx
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#19
(05-12-2014, 11:26 PM)greengiraffe Wrote: Welcome back MW,

It has been a long time coming... Thanks for your detailed analysis.

Frankly, I m getting old and am not into all these detail analysis unless I have substantial interests in the stocks that I m interested.

Thank you again.

GG

Haha thank you GG. Frankly I am now much busier and therefore come here less often. Also, I don't really comment in threads where I feel I cannot add value, so most of the time I end up reading a lot, which is also good for me. It's my job as an investor to gain knowledge all the time.

To be honest, my analysis was not detailed Smile Investors need to take the trouble to visit websites and retrieve publicly available information in order to make an informed investment decision. Some data is easier to obtain than others, of course, but the general idea is that if the information is public, then it should be easily obtainable through a Google search.

These days, I prefer to comment only if I feel it adds value and only if I think I can be sufficiently detailed.

Thanks and take care.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#20
Great to see u back Musicwhiz!! Look forward to your informative postings again! Smile
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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