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;
- Read this at SGinvestors.io -
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.
- Read this at SGinvestors.io -
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.
Read more at SGinvestors.io.
Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
