- Initiate coverage on UMS Integration (SGX:558) with BUY, S$1.85 target price offers 26% upside with ~4% FY26F yield. We are positive on UMS Integration, as we see it as a long-term beneficiary of the semiconductor sector’s growth.
- - Read this at SGinvestors.io -
- The stock is valued at a PEG of below 1 – at a compelling ~18x FY26F P/E against our FY24- 27F earnings growth CAGR of 20% - and below the peer average of 21x.
Benefitting from a positive semiconductor outlook.
- UMS offers a recovery play on the front-end semiconductor sub-sector. The wafer fabrication (fab) equipment segment is expected to grow by 7% y-o-y in 2025 and 10% y-o-y in 2026 (2024: +10% y-o-y), according to Semiconductor Equipment and Materials International’s (SEMI) latest Mid-Year Total Semiconductor Equipment Forecast – OEM Perspective report.
- - Read this at SGinvestors.io -
- investment in capacity expansion; and
- leading-edge production from chip innovations on the back of artificial intelligence (AI) applications, data centres (DC), high-performance computing, and automotive electrification.
- This makes UMS a key beneficiary of the semiconductor equipment growth trend.
New customer and Penang facility to drive growth.
- Read more at SGinvestors.io.
