{"id":33221,"date":"2024-04-25T14:15:17","date_gmt":"2024-04-25T06:15:17","guid":{"rendered":"https:\/\/umedic.com.my\/Stagging2025\/?p=33221"},"modified":"2024-04-25T14:15:17","modified_gmt":"2024-04-25T06:15:17","slug":"umcs-new-production-facility-seen-as-fuel-for-growth","status":"publish","type":"post","link":"https:\/\/umedic.com.my\/Stagging2025\/umcs-new-production-facility-seen-as-fuel-for-growth\/","title":{"rendered":"UMC\u2019s New Production Facility Seen As Fuel For Growth"},"content":{"rendered":"
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PhilipCapital says it remains positive on UMC\u2019s growth prospects following a recent update meeting. UMC has relocated its warehouse to the new facility to facilitate the expansion of its cleanroom facilities. The group\u2019s monthly production capacity currently stands at c.420k, a 40% increase from the previous 300k. The production capacity is expected to reach 600k, effectively doubling its previous capacity by Dec24. The new space allows for further capacity expansion through the installation of more manufacturing lines.<\/p>\n

With the new capacity, UMC is venturing into the new Latin American market to market its products. The house gathers that the current workforce of 150 workers is sufficient to cater to the increased monthly production of up to 600k bottles through increased automation. Marketing and distribution segment to complement UMediC Care Centre UMC has shortlisted identified potential locations for its new marketing offices in Kuala Lumpur and Johor Bahru. UMC purchased a 4-storey shop lot in Batu Kawan to establish the UMediC Care Centre in Dec23. The facility focuses on providing day-care and short and long-
\nterm care, is currently undergoing renovations, and is slated to commence operation by early Jul24. Most of the equipment required in the care centre is readily available from UMC\u2019s internal marketing and distribution business.<\/p>\n

PhilipCapital said it expects UMC\u2019s 2HFY24 results to be stronger on the back of expanded manufacturing capacity and better marketing and distribution segments. The house reiterates its BUY rating and target price at RM1.08, based on unchanged 25x PE multiple on FY25 EPS. It said it believes the strong expected earnings, driven by the commencement of the new factory and launch of the care centre business will serve as the next rerating catalyst. The transfer listing to the Main market, slated for completion by Jun24, should provide near-term share price support.<\/p>\n

Downside risks to call include a potential slowdown in medical equipment demand, operational disruptions, and the loss of license.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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\u2013 Business Today  \u2013<\/p>\n<\/div>\n<\/div>\n

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www.businesstoday.com.my<\/a><\/div>\n<\/div>\n

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PhilipCapital says it remains positive on UMC\u2019s growth prospects following a recent update meeting. UMC has relocated its warehouse to the new facility to facilitate the expansion of its cleanroom facilities. The group\u2019s monthly production capacity currently stands at c.420k, a 40% increase from the previous 300k. The production capacity is expected to reach 600k, […]<\/p>\n","protected":false},"author":129,"featured_media":28391,"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