We see UMS (SGX:558) as a long-term beneficiary of artificial intelligence (AI)-led semiconductor sector's growth. 1Q26 net profit was in line with our estimates as new customer orders gained traction.
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1Q26 net profit in line.
1Q26's revenue and net profit came in at S$69m (+20% y-o-y) and S$14m (+43% y-o-y) – within our forecasts. Revenue growth was driven by ramp-up of orders from UMS's new major customer, which saw both Malaysia, Taiwan, and other market's (particularly South Korea) sales grow by 28%, 63%, and 256% y-o-y to S$12m, S$6m, and S$6m. Singapore's sales grew by 10% y-o-y to S$39m due to higher shipment of semiconductor integrated systems sales.
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Gross profit margin was lower at 52.4% (-3.4ppts) as new customer orders garnered a slightly lower margin for this quarter. This has also caused EBIT margins to be lower at 19.7% (-1.5ppts). Nonetheless, EBIT grew 12% y-o-y to S$14m.
Non-operating items, particularly FX gains, helped to lift net profit to S$14m (+43% y-o-y).
Strong outlook ahead.
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Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
Alfie Yeo 
