UCREST (0005) UCREST BHD - Great Reward! Upside potential healthcare counter.
Hi to all investors and traders! It is me again, couple days ago I shared my view for certain glove stock, you can refer the link https://klse.i3investor.com/blogs/share4u2019/2020-01-28-story-h1482933129-LIMIT_UP_most_upside_potential_stock_A_Look_back_at_SARS.jsp
The market actually response very positive to the article and is ranked No.1 Top article, and today the counter is actually the ONLY glove counter which closed at higher price. Congratulation to the investors and let the profit run.
For overall, the glove sector seem to enter technical correction, and it is healthy for the market and all the investors, the longer the price sideways and rest, the stronger the spike later, for those who haven enter into glove stock, can consider to rest for awhile first.
Malaysia now has 7 confirmed Coronavirus, hopefully the number will not increase rapidly in the future.
https://www.freemalaysiatoday.com/category/nation/2020/01/29/malaysia-now-has-7-confirmed-coronavirus-cases/
Beside from glove and face mask industry, the other stocks related to medicine, medical equipment, healthcare also show some price increase.
But surprisingly the technology stock related to healthcare show no sign of moving, and this might be the golden opportunity to invest for the future.
Today I would like to share my thoughts to the following counter:
UCREST BHD or UCREST (Code 0005, ACE Market, Technology)
ABOUT UCREST
UCrest Berhad is a leading provider of the most advanced Cloud Hospital and mobile health services. Currently, the Company has operation in Singapore, Malaysia, China with partners in Taiwan and Russia.
Worth to know that the name UCREST is taken from United Crest, it is a group which has business involve semiconductor, software and healthcare, the United Crest Healthcare is part of the group, providing the most advanced telemedicine health service.
The world’s second-largest medical group, IHH Healthcare Group Holding Company is one of the United Crest Group’s shareholders, providing the group with a wealth of medical resources.
I-Medic is one of the products from United Crest healthcare:
I-Medic bridges the physical gap between your Doctor and you, allowing you to receive personal care from your doctor no matter where you are. By connecting to multiple medical devices, each time you take your measurements at home, your vitals are sent to your doctor in real-time, allowing him to alert you if anything is amiss. With I-Medic, you have access to global doctors from around the world, all in the comfort of your own home.
UCREST will earn the money from Franchising the I-Medic or through the Membership or Subscription Fee.
Why UCREST?
With the Coronavirus incident, it is important to realize the important of health and the speed of detect symptoms is crucial to get cure as soon as possible, and for the future, almost every one need online healthcare service in order to keep tracking the body condition, the services from UCREST expecting to be benefit from it.
Information taken from the annual report 2019 below, you can see that the company is entering and expanding their telemedicine and insurance business in year 2019, and expect the profit return in this year.
Based on a market survey released in May 2019, the digital health or telemedicine continues to grow at CAGR of 22.1% by 2025 to exceed a market size of USD118B.
The Group has expanded its products to pharmaceutical companies allowing online feedback of side effects and efficacy. The digital pharma platform is currently being rolled out in Malaysia and it is expected to expand into the Asia region.
Insurance is the major payor of the medical expenses in most countries and insurers are rushing to embark on digital insurance and digital health. The Group signed a partnership deal with Inova, a Third-Party Administrator that has presence in the USA and Asian countries to market the i-Medic products in these countries.
Since USA is leading in digital health and it is growing rapidly, we expect this territory to be a major revenue contributor for our FYE 2020 onwards.
and the chairman also said that he sees good prospects for this year, refer to the link. https://www.theedgemarkets.com/article/ucrest-sees-good-prospects-fy20
The technical chart above shows that the price fall from highest Rm 0.58 to current 0.13 because of couple QR not hitting the expectation, the market is over-reacting, the downside is limited, even though yesterday(Tuesday) the market is so bad(DJIA –400), the UCREST price still remain 0.125 there, there is no much place for it to continue fall.
CONCLUSION
For all the reasons above, I believe UCREST has potential for future, the Coronavirus is an opportunity for the business to expand, IHH also can give support to the company, and the management see good prospects for the 2020 financial year (FY20), the company will be getting better starting this year, TP1 RM 0.225, TP2 RM 0.3.
Thanks for reading and see you in the next post.
THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION ARTICLE AS A SHARING TO BSKL COMMUNITY MEMBERS.
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DISCLAIMER : Investment involve risk, including possible loss of principle and other losses. This article and charts are provided for information only and should not be construed as a solicitation to buy or sell any of the instruments mentioned herein. The author may have positions in soe of these instruments. The author shall not be responsible for any losses or lost profits resulting from investment decisions based on the use of the information contained herein. If investment and other professional advice are required, the services of a licensed professional person should be sought.
https://klse.i3investor.com/blogs/share4u2019/2020-01-30-story-h1482963022-Great_Reward_Upside_potential_healthcare_counter.jsp
