UMS Holdings

Will FY18 be another record year for UMS Holdings?

SINGAPORE (Mar 1): DBS and CIMB are positive on the outlook of UMS Holdings, maintaining their respective “buy” calls with higher target prices after the group delivered record 4Q profits on higher revenue and a one-off gain.

See: UMS Holdings' 4Q17 earnings treble to $15.8 mil on higher revenue & one-off gain

UMS Holdings' 4Q17 earnings treble to $15.8 mil on higher revenue & one-off gain

SINGAPORE (Feb 27): Precision engineering group UMS Holdings saw a near trebling of its 4Q17 earnings to $15.8 million from $6 million a year ago on higher revenue and a one-off gain.

Revenue for 4Q grew 13% to $38.7 million from $34.2 million due to higher sales from the semiconductor segment, driven by a higher proportion of contributions from component sales which grew to $19.3 million from $13.9 million 4Q16.

Singapore remained the major contributor, accounting for more than 60% of the group’s total sales in the latest quarter.

UMS Holdings acquires 7.48% stake in JEP Holdings for $5.7 mil

SINGAPORE (Jan 16): UMS Holdings, the precision engineering company, today announced that it has acquired a 7.48% stake or 109 million ordinary shares in JEP Holding for $5.7 million.

The shares were acquired through the open market.

The group satisfied the consideration in cash, funded through internal resources.

Shares in UMS Holdings closed flat at $1.04 on Tuesday, while shares in JEP Holdings closed 0.1 cent lower at 6 cents.

Positive 3Q surprise gets UMS Holdings an upgrade; raises expectations of higher special dividend

SINGAPORE (Nov 13): CIMB Research is maintaining its “add” call on UMS Holdings while raising its target price to $1.21 from $1.13, as it increases its P/BV multiple to 2.88 times versus 2.8 times previously on higher ROEs.

In a Friday report, CIMB analyst William Tng recalls how the semiconductor equipment manufactuer's recently reported net profit for 3Q17 came in above expectations at 34% of CIMB’s full-year forecast, and is at its highest since the research house initiated coverage on the stock in 2010.

UMS’ strong bonds with Applied Materials is biggest selling point

SINGAPORE (Sept 15): Maybank Kim Eng likes UMS Holdings, the high precision components manufacturer, given the group’s strong ties with lead semi-conductor equipment maker Applied Materials.

UMS manufactures the wafer transfer modules used in Applied Materials’ Endura deposition system as well as precision components for other equipment.

UMS supplies 70% of water transfer modules for Endura. It has a strong client relationship with Applied Materials which in 2016, cornered 21% wafer-level equipment market share, according to Gartner.

CIMB cuts UMS to ‘hold’ on moderating demand in second half of the year

SINGAPORE (Aug 14): CIMB is downgrading UMS Holdings to “hold” as it expects demand to moderate in 2H17.

Management says demand from a major customer of UMS is expected to moderate in 2H17. The renewed system integration contract announced earlier this year has a lower average selling price. UMS will mitigate this via efforts to increase production activities in lower-cost Penang where its new cleanroom and new system integration team will be ready in 3Q17.

UMS Holdings 1H earnings double to $22.7 mil; proposes bonus issue and interim dividend

SINGAPORE (Aug 11): UMS Holdings, the provider of equipment manufacturing and engineering services in the semiconductor industry, reported 1H17 earnings more than doubled to $22.7 million from $9.8 million a year ago on robust growth of the group's semiconductor business.

The group is proposing a special bonus issue of up to 107.3 million new shares of the company on the basis of one bonus share for every four shares held by shareholders as well as a one cent tax-exempt interim dividend.

Positive outlook keeps Singapore’s tech manufacturing services sector ‘overweight’

SINGAPORE (July 5): CIMB is keeping its “overweight” rating on Singapore’s tech manufacturing services sector as it remains positive on most of the industry’s stocks under its coverage.

In a Wednesday report, analyst William Tng individually assesses selected stocks from the eight counters covered by CIMB, as he argues that they come from three diverse sub-industries within the sector: semiconductor, plastic injection moulding and printed circuit board (PCB) drilling space.

3 reasons to accumulate on UMS, where all systems go

SINGAPORE (May 17): DBS Vickers Securities is maintaining its “buy” call on precision engineering group UMS Holdings, raising its target price on the stock to $1.07 from 73 cents previously after the group recorded its highest quarterly earnings in over a decade.

(See also: UMS 1Q earnings treble to $11.2 mil on doubling of sales)

UMS seeks to stay as solid yield play

SINGAPORE (May 5): UMS Holdings’ diversification into the water and chemical engineering solutions business is not likely to affect its dividend policy, says executive chairman and CEO Andy Luong.

In the past five years, the company had consistently paid out between 75% and 114% of its earnings. Over that period, its dividend yield had not dipped below 5%, earning UMS a reputation as a solid yield play.

“It is our usual practice to reward shareholders with dividends for their loyalty and continuous support of UMS,” Luong says.

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