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UMS Integration receives approval from Bursa Malaysia Securities for proposed secondary listing
UMS Integration has received a receipt of approval from Bursa Malaysia Securities for the proposed secondary listing on the main market of Bursa Malaysia Securities.
This announcement comes after UMS received the approval from the Securities Commission Malaysia for the proposed secondary listing on the main market of Bursa Malaysia on March 24.
Following the approval from both the Securities Commission and Bursa Malaysia, a prospectus relating to the proposed secondary listing will be issued and made available, says UMS.
The mainboard listed semiconductor firm first announced the proposed secondary listing in a July 17 bourse filing. It said the move would broaden the company&rsquo s investor reach and widen its investor base, and potentially increase the liquidity of the company&rsquo s shares.
On Dec 31, UMS said that the proposed secondary listing does not involve any offering of shares.
UMS Integration held its IPO on the Singapore Exchange back in 2001, where it raised $51.6 million via a placement of 40 million new shares at $1.29 each. About a decade later, it attempted a dual listing in Korea to tap the semiconductor ecosystem there. But a non-Korean company ahead of UMS in the application was caught for fraud, and the dual listing eventually did not go through.
Record highest price was above 1.7 in August 2021 from 5 years chart, will this be broken?
Probably will see UMS slowly move up before the secondary listing in Bursa in July.
This is to close the valuation gap with the listed Malaysian tech counters in Bursa first.
Yesterday AEM. Today UMS for easy money
UMS Integration' s Bursa listing is seen to help narrow valuation gap: UOBKH
UMS Integration is on track to complete its Bursa dual-listing in late July and its valuation gap with its Malaysia-listed peers should narrow thereafter, according to UOB Kay Hian' s John Cheong in his June 11 note, where he has kept his ' buy' call and $1.32 target price.
Cheong notes that UMS, trading at 16x FY2026 earnings, is a discount of around 30% versus 23x fetched by its Malaysian peers, such as UWC and Sam Engineering.
Besides a lower valuation, UMS, giving a yield of 4%, is dishing out its dividends more frequently on a quarterly basis, which makes it more appealing to its peers.
" We also understand that the majority of the institutional funds in Malaysia have a mandate of investing only in Bursa-listed stocks.
" Moreover, UMS will engage the service of market makers at the initial phase to help enhance the liquidity of Malaysia-listed entity before more shares are being transferred from Singapore to Malaysia," adds Cheong.
The dual-listing aside, UMS is seeing healthy orders which gives it the confidence to maintain its revenue guidance of 10% growth q-o-q.
According to Cheong, a new customer for UMS is giving it a " strong order flow" as it diverts its US supply source to Asia.
In addition, the company' s capability to complete the majority of the manufacturing processes in-house such as plating, anodizing, brazing, welding, chemical cleaning will help to maintain healthy margins and achieve prompt delivery.
" UMS has not seen any impact from the US trade tariffs as semiconductors are exempted from the tariffs. UMS has several measures in resolving its labour issues including training foreign workers and enhancing its staff retention strategy," adds Cheong.
His target price of $1.32 is based on an unchanged PE-based valuation of 17.5x FY2026 earnings, which is pegged to 1SD above UMS&rsquo s historical mean PE to reflect the better production ramp-up from UMS&rsquo new customer and improvement in its earnings quality from new contributions from its new customer.
For Cheong, catalysts that might help the share price move include higher-than-expected factory utilisation rates return of orders for aircraft components to benefit its subsidiary JEP Holdings and better-than-expected cost management.
In mid-July,... after approval from shareholders in today' s EGM and from Msian authorities,........
ryukifaiz ( Date: 05-Jun-2025 22:01) Posted:
| When is the listing on Bursa going to commence? |
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Nasdaq semicon ciong, Singapore reverse gear, why???
When is the listing on Bursa going to commence?
Waiting for Secondary Listing to start on BUrsa now,....
UMS Integration
On May 26, UMS Integration CEO Andy Luong acquired 100,000 shares at an average price of S$1.15 per share. This increased his deemed interest from 15.36 per cent to 15.38 per cent. His preceding acquisitions on the open market were in April, with 199,800 shares acquired at S$0.925 apiece and in September 2024 with 600,000 shares acquired at S$0.983 apiece.
This followed the Q1 FY2025 business update released on May 9. Luong noted that the group performed well in Q1, achieving improved revenue, gross margin expansion, and healthy cash flow despite a challenging global business environment compared with the same period last year. He added that significant progress was made in meeting the needs of key customers, with sales in Malaysia nearly trebling due to strong orders from a new key customer.
Luong also maintained that despite the ongoing trade tensions affecting global sentiment, the order forecasts from the group&rsquo s key customers remain unchanged.
Andy buy @ $1.15
Emm,... If you look closely at the numbers and ' at Note (8)' of the Income Statement, Revenue, and compare accordingly, you' ll see the -ve value for SG was very high when comparing 1QFY23 and 1QFY24, but when you compare for SG betw 1QFY24 and 1QFY25, the -ve value is very much lower. What this means is the customer here is starting to bottom-out their drop in orders. The next stage would be recovery in orders for the SG customer.
pkli899 ( Date: 19-May-2025 20:00) Posted:
Yes, indeed.
My disappointment is rather because I was expecting robust revenue/profit with the new customer coming on board.
Instead, it was contribution from new source with diminishing earning from old customer. |
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Yes, indeed.
My disappointment is rather because I was expecting robust revenue/profit with the new customer coming on board.
Instead, it was contribution from new source with diminishing earning from old customer.
Bro,... The Revenue from Msia is
big enough to cover the drops in US starting from 1QFY2025 - sorry,... I have not referred to the latest Business Update before I wrote the earlier input,..
....
pkli899 ( Date: 19-May-2025 14:56) Posted:
My concern too.
chengwh1 ( Date: 17-May-2025 14:03) Posted:
Will the growth in sales in Msia be able to offset the big reduction in sales figures in Singapore ? That' s the million-dollar question. And Sales translates into Profits which finally translates into cashflow and dividend payouts.  |
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My concern too.
chengwh1 ( Date: 17-May-2025 14:03) Posted:
Will the growth in sales in Msia be able to offset the big reduction in sales figures in Singapore ? That' s the million-dollar question. And Sales translates into Profits which finally translates into cashflow and dividend payouts.
Joelton ( Date: 17-May-2025 13:04) Posted:
New customer orders for UMS warms analysts&rsquo sentiments
Analysts are looking forward to a rosier FY2025 for UMS Integration after the group reported earnings of $9.8 million for the 1QFY2025 ended March 31, a negligible change from the same period a year ago.
The analysts at UOB Kay Hian (UOBKH), Maybank Securities (Maybank) and DBS Group Research (DBS) have all kept their &ldquo buy&rdquo calls on the stock, at respective raised target prices (TP) of $1.32 from $1.21 previously, $1.19 from $1.16 previously and $1.38 from $1.31 previously.
UOBKH&rsquo s John Cheong notes that the group&rsquo s flat earnings came in-line with his expectations, meeting 20% of his full-year estimate.
He writes: &ldquo UMS&rsquo gross margin rose to 56% from 53% in 1QFY2024 due to the change in product mix as semiconductor components, which command a higher margin, accounted for a larger share of overall sales.&rdquo
In the period, while revenue grew 7% y-o-y due to the larger semiconductor segment, semiconductor sales fell 6% y-o-y, due to what Cheong sees as weaker global chip demand.
On the other hand, semiconductor component sales grew 19% y-o-y to $29 million, while integrated systems declined 8% y-o-y to $21 million, due to since-resolved supply chain issues.
&ldquo Geographically, all key markets except Malaysia and the US posted lower revenue in 1QFY2025. Revenue in Malaysia surged 287% in 1QFY2025 as UMS continued to ramp up production of semiconductor components for the new major customer,&rdquo writes Cheong.
He adds: &ldquo US revenue grew 7% while sales in Singapore eased 5% in 1QFY2025, due to lower shipments. Lower component spares sales caused a 22% slump in Taiwan revenue.&rdquo
Despite the ongoing trade war, UMS' key customers' order forecasts have not changed.
On this, Cheong writes: &ldquo UMS is encouraged by the strong order flow from its new key customer as it seeks to divert its US supply source to Asia. While US trade tariffs and export controls continue to disrupt global markets, the semiconductor industry remains tariff-exempt for now.&rdquo
The analyst, citing industry association SEMI, says that global fab equipment spending for front-end facilities in 2025 is anticipated to increase by 2% y-o-y to US$110 billion ($142.7 billion).
He adds that the International Air Transport Association (IATA) expects the number of air travellers around the world to surpass five billion whilst total industry revenue is set to exceed US$1 trillion for the first time in 2025.
After reducing his FY2025, FY2026 and FY2027 gross margin assumptions by 0.5 percentage points (ppts) to 50.5% to account for the weaker US dollar against the Malaysian ringgit and Singapore dollar, Cheong has trimmed his earnings by 3%, 4% and 4% respectively.
He writes: &ldquo To recap, the majority of UMS&rsquo revenue is denominated in US$, while it incurs local operating costs in Malaysia and Singapore. However, UMS has a natural hedge of 30% as it procures raw materials in US$.&rdquo
&ldquo The reason for pegging our price-to-earnings ratio (P/E)-based valuation multiple to above mean is to reflect the better production ramp-up from UMS&rsquo new customer and improvement in UMS&rsquo earnings quality from new contributions from its new customer,&rdquo adds Cheong.
Share price catalysts noted by him include higher-than-expected factory utilisation rates, the return of orders for aircraft components to benefit UMS&rsquo subsidiary, JEP Holdings and finally, better-than-expected cost management.
Meanwhile, Maybank analyst Jarrick Seet expects the contribution from the group&rsquo s new customer to increase q-o-q as the ramp up in production yields continues to improve, while revenue from its existing customer should also grow slightly y-o-y.
He writes: &ldquo Revenue from Malaysia surged 287% y-o-y to $9.4 million from $2.4 million, mainly due to the production ramp up of semiconductor components for the new major customer.&rdquo
&ldquo Management expects to hit a revenue target of $1.5 million a week by the end of 2025. It is currently at a $600,000 to $650,000 a week run-rate,&rdquo adds Seet.
The analyst concludes: &ldquo Earnings likely bottomed in FY2024 and should improve in the years ahead, especially as its new major customer is finally commencing production and profitability should start to improve q-o-q.&rdquo
Upside factors noted by him includes stronger-than-expected revenue momentum following capacity expansion in the FY2022 and better-than-expected contributions from subsidiaries Kalf Engineering, Starke and JEP Holdings.
Conversely, downsides include higher-than-expected labour costs, lower-than-expected margins due to negative operating leverage if volume falls and finally, lower-than-expected dividends which may spook yield investors.
Finally, DBS&rsquo s Ling understands that while geopolitical risks and rising tariffs present challenges, the group does not anticipate a direct impact on its operations.
She writes: &ldquo UMS primarily ships to its customers&rsquo operations in Malaysia and Singapore, adopting a local-for-local model. For direct shipments to the US, which account for approximately 13% of the group&rsquo s revenue in 1QFY2025, applicable tariffs are absorbed by the customers.&rdquo
One key risk noted by Ling is the consequence of disruptions to UMS&rsquo relationship with Applied Materials, or any weakness in the latter&rsquo s end-demand, which could significantly weigh on the group&rsquo s performance.
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UMS share looks weak today, hopefully it goes higher tomorrow
Will the growth in sales in Msia be able to offset the big reduction in sales figures in Singapore ? That' s the million-dollar question. And Sales translates into Profits which finally translates into cashflow and dividend payouts.
Joelton ( Date: 17-May-2025 13:04) Posted:
New customer orders for UMS warms analysts&rsquo sentiments
Analysts are looking forward to a rosier FY2025 for UMS Integration after the group reported earnings of $9.8 million for the 1QFY2025 ended March 31, a negligible change from the same period a year ago.
The analysts at UOB Kay Hian (UOBKH), Maybank Securities (Maybank) and DBS Group Research (DBS) have all kept their &ldquo buy&rdquo calls on the stock, at respective raised target prices (TP) of $1.32 from $1.21 previously, $1.19 from $1.16 previously and $1.38 from $1.31 previously.
UOBKH&rsquo s John Cheong notes that the group&rsquo s flat earnings came in-line with his expectations, meeting 20% of his full-year estimate.
He writes: &ldquo UMS&rsquo gross margin rose to 56% from 53% in 1QFY2024 due to the change in product mix as semiconductor components, which command a higher margin, accounted for a larger share of overall sales.&rdquo
In the period, while revenue grew 7% y-o-y due to the larger semiconductor segment, semiconductor sales fell 6% y-o-y, due to what Cheong sees as weaker global chip demand.
On the other hand, semiconductor component sales grew 19% y-o-y to $29 million, while integrated systems declined 8% y-o-y to $21 million, due to since-resolved supply chain issues.
&ldquo Geographically, all key markets except Malaysia and the US posted lower revenue in 1QFY2025. Revenue in Malaysia surged 287% in 1QFY2025 as UMS continued to ramp up production of semiconductor components for the new major customer,&rdquo writes Cheong.
He adds: &ldquo US revenue grew 7% while sales in Singapore eased 5% in 1QFY2025, due to lower shipments. Lower component spares sales caused a 22% slump in Taiwan revenue.&rdquo
Despite the ongoing trade war, UMS' key customers' order forecasts have not changed.
On this, Cheong writes: &ldquo UMS is encouraged by the strong order flow from its new key customer as it seeks to divert its US supply source to Asia. While US trade tariffs and export controls continue to disrupt global markets, the semiconductor industry remains tariff-exempt for now.&rdquo
The analyst, citing industry association SEMI, says that global fab equipment spending for front-end facilities in 2025 is anticipated to increase by 2% y-o-y to US$110 billion ($142.7 billion).
He adds that the International Air Transport Association (IATA) expects the number of air travellers around the world to surpass five billion whilst total industry revenue is set to exceed US$1 trillion for the first time in 2025.
After reducing his FY2025, FY2026 and FY2027 gross margin assumptions by 0.5 percentage points (ppts) to 50.5% to account for the weaker US dollar against the Malaysian ringgit and Singapore dollar, Cheong has trimmed his earnings by 3%, 4% and 4% respectively.
He writes: &ldquo To recap, the majority of UMS&rsquo revenue is denominated in US$, while it incurs local operating costs in Malaysia and Singapore. However, UMS has a natural hedge of 30% as it procures raw materials in US$.&rdquo
&ldquo The reason for pegging our price-to-earnings ratio (P/E)-based valuation multiple to above mean is to reflect the better production ramp-up from UMS&rsquo new customer and improvement in UMS&rsquo earnings quality from new contributions from its new customer,&rdquo adds Cheong.
Share price catalysts noted by him include higher-than-expected factory utilisation rates, the return of orders for aircraft components to benefit UMS&rsquo subsidiary, JEP Holdings and finally, better-than-expected cost management.
Meanwhile, Maybank analyst Jarrick Seet expects the contribution from the group&rsquo s new customer to increase q-o-q as the ramp up in production yields continues to improve, while revenue from its existing customer should also grow slightly y-o-y.
He writes: &ldquo Revenue from Malaysia surged 287% y-o-y to $9.4 million from $2.4 million, mainly due to the production ramp up of semiconductor components for the new major customer.&rdquo
&ldquo Management expects to hit a revenue target of $1.5 million a week by the end of 2025. It is currently at a $600,000 to $650,000 a week run-rate,&rdquo adds Seet.
The analyst concludes: &ldquo Earnings likely bottomed in FY2024 and should improve in the years ahead, especially as its new major customer is finally commencing production and profitability should start to improve q-o-q.&rdquo
Upside factors noted by him includes stronger-than-expected revenue momentum following capacity expansion in the FY2022 and better-than-expected contributions from subsidiaries Kalf Engineering, Starke and JEP Holdings.
Conversely, downsides include higher-than-expected labour costs, lower-than-expected margins due to negative operating leverage if volume falls and finally, lower-than-expected dividends which may spook yield investors.
Finally, DBS&rsquo s Ling understands that while geopolitical risks and rising tariffs present challenges, the group does not anticipate a direct impact on its operations.
She writes: &ldquo UMS primarily ships to its customers&rsquo operations in Malaysia and Singapore, adopting a local-for-local model. For direct shipments to the US, which account for approximately 13% of the group&rsquo s revenue in 1QFY2025, applicable tariffs are absorbed by the customers.&rdquo
One key risk noted by Ling is the consequence of disruptions to UMS&rsquo relationship with Applied Materials, or any weakness in the latter&rsquo s end-demand, which could significantly weigh on the group&rsquo s performance.
|
|
New customer orders for UMS warms analysts&rsquo sentiments
Analysts are looking forward to a rosier FY2025 for UMS Integration after the group reported earnings of $9.8 million for the 1QFY2025 ended March 31, a negligible change from the same period a year ago.
The analysts at UOB Kay Hian (UOBKH), Maybank Securities (Maybank) and DBS Group Research (DBS) have all kept their &ldquo buy&rdquo calls on the stock, at respective raised target prices (TP) of $1.32 from $1.21 previously, $1.19 from $1.16 previously and $1.38 from $1.31 previously.
UOBKH&rsquo s John Cheong notes that the group&rsquo s flat earnings came in-line with his expectations, meeting 20% of his full-year estimate.
He writes: &ldquo UMS&rsquo gross margin rose to 56% from 53% in 1QFY2024 due to the change in product mix as semiconductor components, which command a higher margin, accounted for a larger share of overall sales.&rdquo
In the period, while revenue grew 7% y-o-y due to the larger semiconductor segment, semiconductor sales fell 6% y-o-y, due to what Cheong sees as weaker global chip demand.
On the other hand, semiconductor component sales grew 19% y-o-y to $29 million, while integrated systems declined 8% y-o-y to $21 million, due to since-resolved supply chain issues.
&ldquo Geographically, all key markets except Malaysia and the US posted lower revenue in 1QFY2025. Revenue in Malaysia surged 287% in 1QFY2025 as UMS continued to ramp up production of semiconductor components for the new major customer,&rdquo writes Cheong.
He adds: &ldquo US revenue grew 7% while sales in Singapore eased 5% in 1QFY2025, due to lower shipments. Lower component spares sales caused a 22% slump in Taiwan revenue.&rdquo
Despite the ongoing trade war, UMS' key customers' order forecasts have not changed.
On this, Cheong writes: &ldquo UMS is encouraged by the strong order flow from its new key customer as it seeks to divert its US supply source to Asia. While US trade tariffs and export controls continue to disrupt global markets, the semiconductor industry remains tariff-exempt for now.&rdquo
The analyst, citing industry association SEMI, says that global fab equipment spending for front-end facilities in 2025 is anticipated to increase by 2% y-o-y to US$110 billion ($142.7 billion).
He adds that the International Air Transport Association (IATA) expects the number of air travellers around the world to surpass five billion whilst total industry revenue is set to exceed US$1 trillion for the first time in 2025.
After reducing his FY2025, FY2026 and FY2027 gross margin assumptions by 0.5 percentage points (ppts) to 50.5% to account for the weaker US dollar against the Malaysian ringgit and Singapore dollar, Cheong has trimmed his earnings by 3%, 4% and 4% respectively.
He writes: &ldquo To recap, the majority of UMS&rsquo revenue is denominated in US$, while it incurs local operating costs in Malaysia and Singapore. However, UMS has a natural hedge of 30% as it procures raw materials in US$.&rdquo
&ldquo The reason for pegging our price-to-earnings ratio (P/E)-based valuation multiple to above mean is to reflect the better production ramp-up from UMS&rsquo new customer and improvement in UMS&rsquo earnings quality from new contributions from its new customer,&rdquo adds Cheong.
Share price catalysts noted by him include higher-than-expected factory utilisation rates, the return of orders for aircraft components to benefit UMS&rsquo subsidiary, JEP Holdings and finally, better-than-expected cost management.
Meanwhile, Maybank analyst Jarrick Seet expects the contribution from the group&rsquo s new customer to increase q-o-q as the ramp up in production yields continues to improve, while revenue from its existing customer should also grow slightly y-o-y.
He writes: &ldquo Revenue from Malaysia surged 287% y-o-y to $9.4 million from $2.4 million, mainly due to the production ramp up of semiconductor components for the new major customer.&rdquo
&ldquo Management expects to hit a revenue target of $1.5 million a week by the end of 2025. It is currently at a $600,000 to $650,000 a week run-rate,&rdquo adds Seet.
The analyst concludes: &ldquo Earnings likely bottomed in FY2024 and should improve in the years ahead, especially as its new major customer is finally commencing production and profitability should start to improve q-o-q.&rdquo
Upside factors noted by him includes stronger-than-expected revenue momentum following capacity expansion in the FY2022 and better-than-expected contributions from subsidiaries Kalf Engineering, Starke and JEP Holdings.
Conversely, downsides include higher-than-expected labour costs, lower-than-expected margins due to negative operating leverage if volume falls and finally, lower-than-expected dividends which may spook yield investors.
Finally, DBS&rsquo s Ling understands that while geopolitical risks and rising tariffs present challenges, the group does not anticipate a direct impact on its operations.
She writes: &ldquo UMS primarily ships to its customers&rsquo operations in Malaysia and Singapore, adopting a local-for-local model. For direct shipments to the US, which account for approximately 13% of the group&rsquo s revenue in 1QFY2025, applicable tariffs are absorbed by the customers.&rdquo
One key risk noted by Ling is the consequence of disruptions to UMS&rsquo relationship with Applied Materials, or any weakness in the latter&rsquo s end-demand, which could significantly weigh on the group&rsquo s performance.
UMS Integration Q1 earnings nearly flat at S$9.8 million
Revenue climbs 7% year on year to S$57.7 million, from S$54 million
[SINGAPORE] Semiconductor player UMS Integration : 558 0% on Friday (May 9) reported profit of S$9.8 million for the first quarter ended Mar 31, 2025, almost unchanged from the group&rsquo s profit in the corresponding year-ago period.
This translates to earnings per share of S$0.0138, down from S$0.0141 a year earlier.
The group declared an interim dividend of S$0.01 per share for the period under review, lower than the S$0.012 in Q1 FY2024.
Revenue for the period climbed 7 per cent year on year to S$57.7 million, from S$54 million.
The higher revenue was driven by better performances from both the group&rsquo s semiconductor and aerospace businesses, which grew 6 per cent and 22 per cent, respectively.
However, this was offset by a 12 per cent decline in its others segment, as its tooling and material distribution business was affected by the prevailing soft market conditions.
UMS chair and chief executive Andy Luong said the group&rsquo s sales in Malaysia &ldquo almost tripled on the back of strong orders from its new key customer&rdquo .
The Malaysian market delivered a 287 per cent sales surge to S$9.4 million in Q1 FY2025, from S$2.4 million in FY2024, as the group continued to ramp up production of semiconductor components for a new major customer.
&ldquo We are especially encouraged by the strong order flow from our new key customer as it seeks to divert its US supply source to Asia,&rdquo said Luong.
