- We hosted UMS (SGX:558) for our Mini Tech Conference in Malaysia on 22 Sep 2022.
- Key points from the tech conference
- Outlook: UMS's management remained positive on the outlook for 2H22F. It reiterated its 2Q22 results commentary that order forecasts from its key customer remained strong as its customer continued to be supply constrained. Furthermore, the customer has also announced accelerating technology inflections which will enable it to outgrow the semiconductor market in the years ahead.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- Despite our projection of net profit growth over FY22-24F, we maintain our diuvidend forecast at 5.0 cents in FY22-24F as we think UMS will allocate capital to grow the business opportunity with its new 300,000 sq ft plant.
- Customer diversification: At end-1H22, the semicon segment accounted for 87% of revenue with one key customer. UMS has a ~500,000 sq ft plant mainly dedicated to serve this customer. UMS is targeting to have a new 300,000 sq ft plant ready by end- 2022F and is in active discussions with a new semicon customer to dedicate this plant to their needs. As the new plant is 60% of the existing plant’s size, we think that meaningful customer diversification can be achieved over time if negotiations with the new potential customer are successful. Management also discussed the risk factors involved such as
- Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2022-09-23
Read also CGS-CIMB's most recent report:
2024-02-05 UMS Holdings - A Timely Placement.Previous report by CGS-CIMB:
2023-11-13 UMS - Remains Optimistic On FY24 Outlook.Price targets by 4 other brokers at UMS Target Prices.
Listing of research reports at UMS Analyst Reports.
Relevant links:
UMS Share Price History,
UMS Announcements,
UMS Dividends & Corporate Actions,
UMS News Articles
UMS - Customer Diversification Catalyst
UMS HOLDINGS LIMITED (SGX:558)
