SINGAPORE (July 22): KGI has upgraded UMS Holdings, which provides equipment and manufacturing services for the semiconductor industry, to ‘neutral’, with a new target price of 89 cents from 74 cents previously. 

Several major semiconductor capital equipment companies have reported that demand for their products did not wane in the second quarter, as they work to fulfill orders pushed back from the initial months of the Covid-19 disruptions.

Applied Materials (AMAT), a US-based semiconductor equipment manufacturer which is UMS’ key client, estimates that US$650 million ($901.5 million) of sales may have been pushed back into later quarters. This should translate to double-digit growth for UMS, says KGI analyst Kenny Tan in his July 22 report.

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