UMS - DBS Research 2022-11-15: Customer Diversification Bearing Fruit

• UMS (SGX:558)'s 3Q22 revenue surged 48.1% y-o-y and 15.6% q-o-q to a high of S$100.1m,driven by the robust expansion of global wafer fabs. Net profit jumped 180.5% y-o-y (+110.6% q-o-q) to S$42.5m.
  • Within the semiconductor segment, which accounts for 89% of total revenue, semiconductor integrated system sales more than doubled y-o-y, while component sales went up by 18% y-o-y. As a result of the slower growth for the component division, which typically accounts for a higher proportion, the split between system and component sales is the same for 3Q22.
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• A dividend of S$0.01 was declared. See UMS's dividend history.
• For the 9M22 period, revenue of S$271.4m (+48% y-o-y) exceeded the sales achieved in FY21 and accounts for 76% of our forecast, broadly in line. All core business segments of UMS reported stronger results.
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Lower gross margin on higher material costs for new customers

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Lee Keng LING DBS Group Research | https://www.dbs.com/insightsdirect/ 2022-11-15 SGinvestors.io

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