UMS's 1Q26 revenue and PATMI surged 20% and 43% y-o-y to S$69.4m and S$14m, higher than our estimates. Revenue from Semicon and Aerospace grew 21% and 18% y-o-y.
Management expects q-o-q growth, mainly due to the ramp-up of its new customer. They are also likely to expand capacity through the new P30B plant with an estimated S$100m capex.
Expect q-o-q improvement
- Read this at SGinvestors.io -
Execution will be key as demand and orders are there. UMS is currently lacking manpower and would be able to ramp up faster if it can hire more engineers or machinists.
Expansion of new plant for new customer
- Read this at SGinvestors.io -
Management aims to reach a S$300m annual run-rate in 5-8 years with the new customer.
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/.
