UMS (SGX:558) is working on many NPIs (new product introductions) with its new key customer to expand product offerings coupled with the upbeat forecast for 2026. They have also purchased raw materials in bulk at a lower cost, hence margins will likely expand.
- Read this at SGinvestors.io -
New customer to further ramp up in FY26E.
The majority of the 91% y-o-y surge in revenue to S$33.3m from S$17.5m in Malaysia is due to its new customer. With more NPIs in the works and the upbeat forecast given by its new customer, we expect FY26 UMS's revenue from its new client to surge further by 100% y-o-y as the ramp up continues for more products.
- Read this at SGinvestors.io -
Renews IS contract for another 3 years.
UMS renewed its Integrated System (IS) contract with its existing key customer for another 3 years. This will enable UMS to benefit from the robust growth in demand that this customer has on its orderbook.
Revenue from Singapore dipped y-o-y 4% in FY25, but could potentially start to increase again in FY26/27E due to the AI capex cycle. They have also been chosen by the customer to be one of the key suppliers for the next generation packaging system, which could potentially boost their volumes going forward.
We expect 15-20% y-o-y revenue growth for this customer.
Potential beneficiary of AI capex cycle.
Read more at SGinvestors.io.
Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
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