UMS Integration - DBS Research 2026-03-02: Gearing Up For Growth

• For FY25, UMS (SGX:558)'s revenue increased 4% y-o-y to S$251.1mil, driven by 5% growth in semiconductor sales, with the segment remaining the key earnings contributor as component sales rose 10% y-o-y alongside stable IS demand, reflecting deeper customer integration and stronger recurring manufacturing intensity.

Core semiconductor demand remains firm despite quarterly volatility.

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• A final dividend of 2.0 cents was declared, bringing full year UMS's dividends to 5 cents, yield of 3.4%.

4Q25 component sales lower, likely due to timing and execution factors rather than underlying demand weakness.

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• We believe the softer component sales were mainly driven by timing and execution factors rather than underlying demand weakness, given the still constructive outlook for semiconductor equipment makers.
• Reflecting a less favourable quarterly product mix, 4QFY25 gross margin moderated to 49.6% from 58.2% in 3QFY25. Net profit remained resilient at S$11.1mil, flat y-o-y but up 5.7% q-o-q.

Customer demand visibility strengthens medium-term growth outlook.

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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/.

Previous report by DBS:
2025-11-11 UMS Integration - 3QFY25 Margins Improved Despite Weaker Sales.

Price targets by 3 other brokers at UMS Target Prices.

Listing of research reports at UMS Analyst Reports.

Relevant links:
UMS Share Price History,
UMS Announcements,
UMS Dividend Payout Dates & Corporate Actions,
UMS News