UOC was a 100% subsidiary of United Global before the latter divested a 40% stake to Repsol.
SEE:United Global in JV with Japan's M-TechX to produce oil-absorbent nano-fibre materials
As it is, United Global currently has a network of distributors spanning across 40 countries.
In addition, the global lubricant market is projected to reach US$182.6 billion by 2025, from US$157.6 billion in 2020.
According to Ye, this would translate to a compound annual growth rate (CAGR) of 3.0%.
The Asean region, where UOC derived about 55% of its FY2019 revenue, is expected to remain heavily dependent on lubricants, she adds.
This is especially the case for automotive lubricants, as the region is “not yet fully industralised”.
Lastly, United Global has ample means for expansion, with it being in a net cash position since its listing in 2016.
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As at Dec 31, 2020, the company has $9.7 million in net cash. It has also remained debt-free since 4QFY2019.
“This puts United Global in a comfortable position to pursue future acquisitions or business expansion,” she writes.
As at 11.32am, shares in United Global are trading flat at 42 cents.
