KGI Securities Research has maintained its ‘outperform’ on UMS Holdings with a higher target price of $1.43 from $1.22 previously following its 4Q2020 results ended December 2020.

The higher target price is underpinned by a slightly higher P/E of 15 times, on better than expected associate contributions, improved margins, and further clarity on UMS’s expansion initiatives.

USM’ 4Q2020 sales were up 9% y-o-y at $44.1 million, bringing FY2020 sales up 24.6% y-o-y at $164.4 million. Gross margins were up 40 basis points y-o-y to 53.3%.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook