{"id":32704,"date":"2024-01-12T13:45:43","date_gmt":"2024-01-12T05:45:43","guid":{"rendered":"https:\/\/umedic.com.my\/Stagging2025\/?p=32704"},"modified":"2024-02-05T13:22:26","modified_gmt":"2024-02-05T05:22:26","slug":"umcs-capacity-likely-to-double-by-the-end-of-the-year","status":"publish","type":"post","link":"https:\/\/umedic.com.my\/Stagging2025\/umcs-capacity-likely-to-double-by-the-end-of-the-year\/","title":{"rendered":"UMC’s capacity likely to double by the end of the year"},"content":{"rendered":"

PETALING JAYA: UMediC Group Bhd (UMC) will see its capacity doubling by the end of the year, with its new plant up and running, according to Phillip Capital Research.<\/p>\n

The newly constructed plant is adjacent to the company\u2019s existing factory and it started operations last December.<\/p>\n

\u201cThis new facility will see capacity doubling by the end of 2024. The expansion will be implemented in phases, with 40% scheduled to start up by the first half of 2024 (1H24) followed by the remaining 60% in 2H24.<\/p>\n

\u201cUMC also plans to relocate its existing storage to the new facility with the existing factory focusing on clean room and manufacturing processes,\u201d Phillip Capital said in a note to clients yesterday.<\/p>\n

UMC is involved in marketing, distribution and manufacturing of medical devices.<\/p>\n

Reaffirming its positive outlook on UMC for 2024, the research firm said UMC\u2019s management is also positive about the demand of two new products being rolled out.<\/p>\n

One is the prefilled nebulizer, which started production last December. The second new product is the sterile water inhalation, which is scheduled to be launched in 1Q24.<\/p>\n

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\u201cWe expect the demand for the new products to drive the strong earnings growth inFY25.<\/p>\n

\u201cIn terms of new marketing and distribution channels, UMC is actively exploring new locations in Kuala Lumpur and Johor to showcase its medical devices,\u201d said the research house.<\/p>\n

On the company\u2019s 2Q24 results, which is slated to be announced in March, Phillip Capital expects earnings to recover sequentially on the back of higher sales and normalization of its marketing costs.<\/p>\n

\u201cRecall that 1Q24 margin and profit were impacted by the higher marketing costs and increased administrative expenses as UMC hired additional workers to cater for the new facility.<\/p>\n

\u201cWith the absence of the lumpy marketing costs incurred last quarter, we expect the earnings before interest, taxes, depreciation, and amortization margin to show sequential improvement in the upcoming quarter,\u201d said the research house.<\/p>\n

It maintained a \u201cbuy\u201d rating on the stock with a target price of 87 sen, which is pegged at 25 times price-to-earnings multiple.<\/p>\n

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\u2013 The Star \u2013 <\/div>\n
http:\/\/thestar.com.my<\/a><\/div>\n
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PETALING JAYA: UMediC Group Bhd (UMC) will see its capacity doubling by the end of the year, with its new plant up and running, according to Phillip Capital Research. The newly constructed plant is adjacent to the company\u2019s existing factory and it started operations last December. \u201cThis new facility will see capacity doubling by the […]<\/p>\n","protected":false},"author":130,"featured_media":28859,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"

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UMediC Group Berhad (KLSE:UMC<\/a>) Second Quarter 2023 Results<\/h2>\r\n

Key Financial Results<\/h3>\r\n