CGS-CIMB’s William Tng has upgraded his rating on UMS from “hold” to “add” on the back of better-than-expected 3QFY2020 earnings, along with a raised target price of $1.27 from $1.10. 

UMS’s revenue rose 37% y-o-y to $45.2 million in 3QFY2020, beating the brokerage’s and Bloomberg consensus’ expectations at 29% of Tng’s FY2020F forecast.

Tng said despite higher revenue contribution from lower margin system integration sales, the group’s gross material margin was still respectable at 55.3% in 3Q0220, compared to 54.9% in 3QFY2019. 

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