Between Aug 18 and Aug 23, JEP Holdings executive chairman and CEO Andy Luong acquired 2,021,900 shares at an average price of S$0.302 per share.

 

With a consideration of S$610,501, this took his direct interest in the Catalist-listed provider of precision machining and engineering services from 0.70 per cent to 1.19 per cent.

 

Luong holds 15.89 per cent of the issued share capital of UMS Holdings, which in turn holds 73.85 per cent of the issued share capital of the company. This brings his total interest in JEP Holdings to 75.04 per cent.

 

Luong is also the executive chairman and CEO of UMS Holdings and has more than 20 years of experience in manufacturing front-end semiconductor components. As relayed over recent years, JEP Holdings has looked to maximise operational synergies with UMS Holdings to improve overall performance and seek new growth opportunities.

 

On Aug 11, JEP Holdings reported a 33.7 per cent decrease in H1 FY2023 (ended Jun 30) revenue from H1 FY2022, primarily attributed to a weaker performance from its equipment manufacturing and precision machining segments, which were impacted by the lower global demand for semiconductors.

 

Luong noted that while the global slowdown in demand for semiconductors and the economic challenges such as recession led to the group&rsquo s lower H1 FY2023 performance, JEP Holdings remained profitable with a healthy financial position. He added that the group will continue to focus on its twin growth engines in the semiconductor industry and the aerospace industry.

 

The group&rsquo s new factory in Penang, Malaysia is also scheduled for completion in the second half of 2023.

On Jul 5, JEP Holdings : 1J4 0% executive chairman Andy Luong acquired 150,000 shares at an average price of S$0.305 per share. With a consideration of S$45,750, this increased his direct interest in the company from 0.66 per cent to 0.70 per cent. This followed his acquisition of 115,000 shares at an average price of S$0.301 per share on Jun 28. Luong also holds 15.89 per cent of the issued share capital of UMS Holdings : 558 0%, which in turn holds 73.85 per cent of the issued share capital of JEP Holdings. This brings his total interest in JEP Holdings to 74.55 per cent

On Jun 28, JEP Holdings : 1J4 0% executive chairman Andy Luong acquired 115,000 shares at an average price of S$0.301 per share.

 

With a consideration of S$34,600, this increased his direct interest in the company from 0.63 per cent to 0.66 per cent.

 

Luong also holds 15.89 per cent of the issued share capital of UMS Holdings, which in turn holds 73.85 per cent of the issued share capital of JEP Holdings.

 

This brings his total interest in JEP Holdings to 74.51 per cent.

Between Jun 19 and 20, JEP Holdings : 1J4 -1.54% executive chairman Andy Luong acquired 500,000 shares at S$0.325 per share.

 

With a consideration of S$162,500, this increased his direct interest in the company from 0.51 per cent to 0.63 per cent.

 

Luong also holds 15.89 per cent of the issued share capital of UMS Holdings, which in turn holds 73.85 per cent of the issued share capital of JEP Holdings. This brings his total interest in JEP to 74.48 per cent. His preceding acquisition was on Jun 9, with 600,000 shares acquired at S$0.310 per share.

 

With over 30 years of operating history, JEP Holdings is a leading solutions provider of precision machining and engineering services, with a primary focus on the aerospace industry.

 

Luong noted in April that he expects a more noticeable recovery of JEP&rsquo s aerospace business in the second half of 2023, supported by volume production of complex and high value-added parts from its strategic customers.

 

The group&rsquo s new factory in Penang, Malaysia is scheduled for completion in the second half of 2023, and full production is expected to begin in the first quarter of 2024. This will enable the company to take on more customer orders and increase production output.

 

Luong has more than 20 years of experience in manufacturing front-end semiconductor components. He acquired his machining skills through his experience in working in his family machining business in Vietnam.

 

He emigrated to the United States from Vietnam in 1979 and shortly after college, started a precision business called Long&rsquo s Manufacturing. He is also the executive chairman and CEO of UMS Holdings.

 

JEP Holdings 1J4 0.00%   has reported earnings of $2.1 million for the 2HFY2022 ended Dec 31, 2022, 65.2% lower y-o-y. The earnings plunge was due to the slowdown in the global semiconductor industry during the 4QFY2022, says the group.

 

FY2022 earnings fell by 3.7% y-o-y to $7.6 million mainly due to foreign exchange (forex) losses arising from a weaker US dollar (USD) during the period.

 

Revenue for the FY2022 grew by 8.8% y-o-y to $82.6 million as most of the group&rsquo s segments saw revenue growth on a y-o-y basis. Only sales in the precision machining segment fell due to lower electronic component sales amid a slow recovery in the aviation sector. During the 2HFY2022, revenue fell by 18.2% y-o-y to $38.0 million as most segments saw revenue decline y-o-y and mitigated by the y-o-y growth in the trading and other segments revenue.

 

During the year, most of the group&rsquo s key markets expanded, with sales in Malaysia leading the growth. China and Canada, on the other hand, saw lower sales y-o-y.

 

Gross profit for FY2022 increased by 8.7% y-o-y to $16.5 million while gross profit for 2HFY2022 fell by 40.5% y-o-y to $6.6 million.

 

FY2022 other operating income fell by 62.7% y-o-y to $808,000 due to the lesser grant amount received and forex losses compared to forex gains in the year before.

 

FY2022 earnings per share (EPS) stood at 1.832 cents.

 

As at Dec 31, 2022, cash and bank balances stood at $23.8 million.

 

No dividend has been declared for the period.

 

Looking ahead, the group says it expects to see a more noticeable recovery of its aerospace business in the 2HFY2023 due to higher volume production of new complex and high value-added parts from its strategic customers.

 

However, the near-term outlook on the semiconductor industry is less buoyant with revenue expected to decline.

 

On its plans, the group says it will proceed with its production expansion plan and optimise its production mix to boost performance. Its new factory in Penang, Malaysia is scheduled for completion in the second half of 2023 which will enable it to take on more customer orders and increase production output.

 

&ldquo Moving forward, the group will continue to maximize operational synergies with UMS to improve overall performance and seek new business opportunities,&rdquo says the group.

 

On Apr 22, UMS Holdings : 558 0% increased its interests in JEP Holdings above 73.0 per cent, with 1,654,200 shares acquired at an average price of 37.9 cents per share.

 

With a consideration of S$626,231, this increased UMS Holdings&rsquo direct interest in the Catalist-listed stock from 72.92 per cent to 73.32 per cent.

 

According to UMS Holdings, last year JEP Holdings provided readily available manufacturing facilities in Singapore to support its strong customer order flows, alleviating the production challenges faced in the group&rsquo s Penang campus due to the manpower crunch in Malaysia during the year.

 

UMS Holdings began acquiring shares of JEP Holdings in January 2018, with a mandatory unconditional cash offer triggered last year, with a final offer price of 20.0 cents per share that closed with valid acceptances representing 71.66 per cent of JEP Holdings.

 

JEP Holdings is a leading solutions provider of precision machining and engineering services, with a primary focus on the aerospace industry. For its H2 FY21 (ended Dec 31), JEP Holdings achieved record revenue and profit over a 6-month period, with a pre-tax profit of S$9.5 million for its FY21 compared to S$1.0 million in FY20.

 

Executive chairman and CEO of both UMS Holdings and JEP Holdings, Andy Luong, has more than 20 years of experience in manufacturing front-end semiconductor components.

 

He recently noted that the current focus of JEP Holdings pivots towards the semiconductor equipment segment, while awaiting the recovery of its core aerospace component manufacturing business.

 

In FY21, the aerospace industry and equipment manufacturing respectively contributed 19 per cent and 37 per cent of JEP Holding&rsquo s revenue, compared to 47 per cent and 30 per cent in FY20, and 63 per cent and 17 per cent in FY19.