- UMS's outlook is positive, driven by several factors:
- Significant production ramp-up and new product introductions (NPIs) for a new customer;
- stable performance from key existing customers, including contributions from their new Tampines plant;
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- a robust semiconductor market, projected to grow 12.7% in 2025 to US$705.4bn, and another 8.9% in 2026, according to Gartner.
1Q25 slightly below expectations; lower system sales and higher costs a drag.
- UMS's 1Q25 revenue rose 7% y-o-y to S$ 57.7mil, supported by continued strength in the semiconductor and aerospace segments, which grew 6% and 22% respectively. Semiconductor remained the dominant contributor, accounting for 84% of revenue. Within this, component sales surged 19% to S$ 28.9mil, buoyed by rising orders from a major new customer, while Integrated System (IS) sales fell 8% y-o-y due to earlier supply chain disruptions – now resolved. On a q-o-q basis, semiconductor revenue fell 15%, mainly due to lower IS shipments.
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- Revenue and net profit accounted for 21% and 19% of our FY25F forecasts, respectively, slightly short of expectations.
- The group declared an interim dividend of 1.0 cents, lower than the 1.2 cents declared in 1Q24.
No direct impact from tariffs.
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