- We are positive on UMS Integration (SGX:558), as we see it as a long-term beneficiary of the semiconductor sector’s growth. Growth over the short-to-medium term should be driven by an increase in semiconductor equipment spending, ramp-up in new customer orders, and margin expansion.
3Q25 slightly below.
- - Read this at SGinvestors.io -
- Sales to both Singapore and US markets declined by 21% and 33% y-o-y to S$36m and S$6m on both semiconductor and semiconductor component sales. However, sales to Taiwan, Malaysia and other markets grew by 4%, 71% and 98% y-o-y to S$4m, S$8m and S$6m. From Malaysia, UMS saw a sales contribution from a new major customer, while its “Others” segment included sales to the new customer’s plant in Korea.
1-to-4 bonus issue.
- - Read this at SGinvestors.io -
- A third interim UMS's dividends of 1 SG cent was declared, which was below our 1.2 cents expectation.
- UMS also declared a 1-for-4 bonus issue to reward shareholders, which will improve liquidity and will result in a more affordable UMS's share price.
We cut FY25F and FY26F earnings by 9% and 7%.
- Read more at SGinvestors.io.
