- We expect UMS's 2H25 earnings to be stronger than 1H25, mainly due to the ramp up of the new customer as more parts are being qualified. They have secured a new product from AMAT which will start production in 4Q25. Capex cycle will also likely be completed by end 2025 which could potentially see UMS's dividends increase.
- - Read this at SGinvestors.io -
New product from AMAT.
- UMS has secured a new product order from AMAT which is slated to start production in 4Q25. This could potentially be worth up to 20% of the existing revenue from AMAT if the ramp up goes well.
- - Read this at SGinvestors.io -
New customer ramping up.
- UMS’s revenue from Malaysia surged 250% to S$17.4m in 2Q25 from S$5m in 2Q24 mainly due to the ramp up from its new customer. As more parts are being qualified, management expects this ramp up to continue but UMS is facing worker shortage issues and has to hire from Singapore to then to train the locals in Malaysia.
- We expect 2H25 to be better than 1H in terms of revenue and profitability due to the expected increased contribution from the new customer. We make no change to our earnings estimates.
More dividends, bonus shares a possibility.
- Read more at SGinvestors.io.
