Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

MSCI Emerging Markets Index / Technical Analysis

EM equities remain long-term leadership despite giving up some ground over the last month to developed markets. Given the intact relative strength uptrend, we reiterate our overweight EM recommendation. Energy and Health Care stocks are outperforming and remain attractive. Technology is consolidating and we would use recent weakness as a buying opportunity. Today’s report includes a wide variety of bottom-up recommendations, spanning most sectors and all market capitalizations.

EM equities remain long-term leadership despite giving up some ground over the last month to developed markets. Given the intact relative strength uptrend, we reiterate our overweight EM recommendation. Energy and Health Care stocks are outperforming and remain attractive. Technology is consolidating and we would use recent weakness as a buying opportunity. Today’s report includes a wide variety of bottom-up recommendations, spanning most sectors and all market capitalizations.

EM Strategy: Overweight Technology, Energy, and Health Care.

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Equity Bottom-Up

<ul><li>Earnings on an upcycle trend, low correlation with Western stock markets, and solid short-term earnings momentum relative to its sector</li><li>A CAGR of 26% for revenue in the last 12 years should continue with expansion adding 11bn pieces or 40% in capacity by end of 2018</li><li>Increase in glove consumption in developing nations likely to boost sales with world demand growing around 10% per year</li><li>Attractive at a 18CE* PEG ratio of 0.7 versus ASEAN Health Care at a PEG ratio of 2.7</li><li>Risks: Raw materials cost increase, delays in expansion</li></ul>* Consensus Estimates

Earnings on an upcycle trend, low correlation with Western stock markets, and solid short-term earnings momentum relative to its sectorA CAGR of 26% for revenue in the last 12 years should continue with expansion adding 11bn pieces or 40% in capacity by end of 2018Increase in glove consumption in developing nations likely to boost sales with world demand growing around 10% per yearAttractive at a 18CE* PEG ratio of 0.7 versus ASEAN Health Care at a PEG ratio of 2.7Risks: Raw materials cost increase, delays in expansion* Consensus Estimates

HART (HART MK): Largest in the World in Nitrile Gloves

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<h2>FY2016 Results</h2>UG Healthcare ("UGHC") <a href="http://infopub.sgx.com/FileOpen/UG%20Healthcare%20FY2016%20Full%20Year%20Results_Final.ashx?App=Announcement&amp;FileID=418672" target="_blank">posted</a> FY2016 results last night, and in their <a href="http://infopub.sgx.com/FileOpen/UG%20Heatlhcare%20FY2016%20Results%20News%20Release_Final.ashx?App=Announcement&amp;FileID=418673" target="_blank">news release</a> the Group announced that they have:<ul>
<li>Achieved 72% increase in net profit to SGD 5.5m for FY 2016</li>
<li>Achieved planned production capacity of 1.9 billion gloves per annum, representing a 27% increase
</li>
<li>They have also proposes a final dividend of S$0.00587 per share amounting in aggregate to 20% of net profit of the Group for FY2016</li>
<li>80% of issued shares have committed to elect new shares in lieu of share dividend…</li>
</ul>

FY2016 ResultsUG Healthcare ("UGHC") posted FY2016 results last night, and in their news release the Group announced that they have:
Achieved 72% increase in net profit to SGD 5.5m for FY 2016
Achieved planned production capacity of 1.9 billion gloves per annum, representing a 27% increase

They have also proposes a final dividend of S$0.00587 per share amounting in aggregate to 20% of net profit of the Group for FY2016
80% of issued shares have committed to elect new shares in lieu of share dividend…


UG Healthcare - FY16 Results; Capacity Increase to Continue to Drive Growth

UG Healthcare (Mcap: US$42m) reported a 20.1% YoY increase in 1H16 revenue to S$30.1m and a 31.0% YoY increase in 1H16 Net Profits. <ul><li>1H16 results indicates a healthy performance as it managed to improve both top and bottom line over the last 6 months</li><li>The company is on track to achieve a production capacity of 1.9 billion gloves per annum by end FY 2016 (June 2016)</li><li>Management is targeting a further increase in annual production capacity of 400-500 million gloves per annum by FY 2017</li><li>UG has plans to further expand their surgical glove distribution in emerging markets, in order to increase share of premium products</li><li>Stock remains attractive versus peers who are trading at higher EV/EBITDA and PE multiples</li></ul>

UG Healthcare (Mcap: US$42m) reported a 20.1% YoY increase in 1H16 revenue to S$30.1m and a 31.0% YoY increase in 1H16 Net Profits. 1H16 results indicates a healthy performance as it managed to improve both top and bottom line over the last 6 monthsThe company is on track to achieve a production capacity of 1.9 billion gloves per annum by end FY 2016 (June 2016)Management is targeting a further increase in annual production capacity of 400-500 million gloves per annum by FY 2017UG has plans to further expand their surgical glove distribution in emerging markets, in order to increase share of premium productsStock remains attractive versus peers who are trading at higher EV/EBITDA and PE multiples

Bottom Line Delivers, Plans on the Anvil for Further Capacity Expansion and Premiumisation

Malaysia

Hartalega Holdings Bhd. manufactures a wide range of latex gloves. The Company's products include natural rubber examination gloves, nitrile examination gloves, nitrile clean room gloves and natural rubber surgical gloves.

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Hartalega Holdings (HART MK)

EM Strategy: Overweight Technology, Energy, and Health Care.

EM equities remain long-term leadership despite giving up some ground over the last month to developed markets. Given the intact relative strength...

Vermilion Research

HART (HART MK): Largest in the World in Nitrile Gloves

Earnings on an upcycle trend, low correlation with Western stock markets, and solid short-term earnings momentum relative to its sector A CAGR of...

A. Stotz Investment Research

UG Healthcare - FY16 Results; Capacity Increase to Continue to Drive Growth

FY2016 ResultsUG Healthcare ("UGHC") posted FY2016 results last night, and in their news release the Group announced that they have: Achieved 72%...

Crispin Francis

Bottom Line Delivers, Plans on the Anvil for Further Capacity Expansion and Premiumisation

UG Healthcare (Mcap: US$42m) reported a 20.1% YoY increase in 1H16 revenue to S$30.1m and a 31.0% YoY increase in 1H16 Net Profits. 1H16 results...

Crispin Francis

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