Valuation Update With 7 Day Price Move • May 18
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to S$2.73, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 31x in the Semiconductor industry in Asia. Total returns to shareholders of 302% over the past three years. Upcoming Dividend • Apr 30
Upcoming dividend of S$0.02 per share Eligible shareholders must have bought the stock before 07 May 2026. Payment date: 22 May 2026. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 2.3%. Lower than top quartile of Singaporean dividend payers (5.0%). Higher than average of industry peers (1.2%). Price Target Changed • Apr 29
Price target increased by 16% to S$2.14 Up from S$1.85, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of S$2.25. Stock is up 160% over the past year. The company is forecast to post earnings per share of S$0.067 for next year compared to S$0.047 last year. New Risk • Apr 22
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 107% Dividend per share is over 42x cash flows per share. Dividend yield: 2.5% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Apr 17
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: S$0.059 (up from S$0.057 in FY 2024). Revenue: S$251.1m (up 3.7% from FY 2024). Net income: S$41.6m (up 2.4% from FY 2024). Profit margin: 17% (in line with FY 2024). Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) exceeded analyst estimates by 21%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has increased by 31% per year, which means it is well ahead of earnings. Announcement • Apr 14
UMS Integration Limited, Annual General Meeting, Apr 30, 2026 UMS Integration Limited, Annual General Meeting, Apr 30, 2026, at 10:00 Singapore Standard Time. Location: 16 seletar aerospace crescent, 797567, Singapore Announcement • Mar 03
UMS Integration Limited (SGX:558) acquired remaining 30% stake in Starke Singapore Pte Ltd. from Luah Kian Tiong and Yue Chee San for SGD 8.2 million. UMS Integration Limited (SGX:558) acquired remaining 30% stake in Starke Singapore Pte Ltd. from Luah Kian Tiong and Yue Chee San for SGD 8.2 million on March 2, 2026. A cash consideration of SGD 8.22 million will be paid by UMS Integration Limited. The Acquisition will be funded by the Group’s internal resources and/or external bank borrowings. In connection with the Acquisition, the Parties have agreed that Luah Kian Tiong shall cease to be the managing director of Starke with effect from February 28, 2026. Following completion of the Acquisition, Starke would become a wholly owned subsidiary of UMS Integration Limited.
Xie Xingbei Pearlyn and Gwendolyn Gn of Shook Lin & Bok LLP acted as legal advisor for UMS Integration Limited.
UMS Integration Limited (SGX:558) completed the acquisition of remaining 30% stake in Starke Singapore Pte Ltd. from Luah Kian Tiong and Yue Chee San on March 2, 2026. Price Target Changed • Mar 03
Price target increased by 16% to S$1.71 Up from S$1.47, the current price target is an average from 5 analysts. New target price is 11% above last closing price of S$1.53. Stock is up 74% over the past year. The company is forecast to post earnings per share of S$0.063 for next year compared to S$0.059 last year. Declared Dividend • Mar 01
Third quarter dividend of S$0.02 announced Shareholders will receive a dividend of S$0.02. Ex-date: 7th May 2026 Payment date: 22nd May 2026 Dividend yield will be 3.0%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (85% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 3.1% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 45% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jan 08
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to S$1.14, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 26x in the Semiconductor industry in Asia. Total returns to shareholders of 3.0% over the past three years. Upcoming Dividend • Nov 24
Upcoming dividend of S$0.01 per share Eligible shareholders must have bought the stock before 01 December 2025. Payment date: 17 December 2025. Payout ratio is on the higher end at 85% but the company is not cash flow positive. Trailing yield: 3.8%. Lower than top quartile of Singaporean dividend payers (5.4%). In line with average of industry peers (3.6%). Major Estimate Revision • Nov 14
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from S$265.1m to S$253.1m. EPS estimate also fell from S$0.067 per share to S$0.059 per share. Net income forecast to grow 22% next year vs 46% growth forecast for Semiconductor industry in Singapore. Consensus price target broadly unchanged at S$1.75. Share price fell 6.0% to S$1.42 over the past week. Reported Earnings • Nov 09
Third quarter 2025 earnings released: EPS: S$0.015 (vs S$0.015 in 3Q 2024) Third quarter 2025 results: EPS: S$0.015 (in line with 3Q 2024). Revenue: S$59.3m (down 8.8% from 3Q 2024). Net income: S$10.5m (flat on 3Q 2024). Profit margin: 18% (up from 16% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Upcoming Dividend • Oct 02
Upcoming dividend of S$0.01 per share Eligible shareholders must have bought the stock before 09 October 2025. Payment date: 28 October 2025. Payout ratio is on the higher end at 85%, and the cash payout ratio is above 100%. Trailing yield: 3.6%. Lower than top quartile of Singaporean dividend payers (5.3%). In line with average of industry peers (3.6%). Declared Dividend • Aug 14
Second quarter dividend of S$0.01 announced Shareholders will receive a dividend of S$0.01. Ex-date: 9th October 2025 Payment date: 28th October 2025 Dividend yield will be 3.5%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (85% earnings payout ratio) but not covered by cash flows (221% cash payout ratio). The dividend has increased by an average of 3.1% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 74% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 13
Second quarter 2025 earnings released: EPS: S$0.014 (vs S$0.013 in 2Q 2024) Second quarter 2025 results: EPS: S$0.014 (up from S$0.013 in 2Q 2024). Revenue: S$67.3m (up 20% from 2Q 2024). Net income: S$10.3m (up 10% from 2Q 2024). Profit margin: 15% (down from 17% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Jul 31
UMS Integration Limited has filed a Follow-on Equity Offering in the amount of MYR 3.55268 billion. UMS Integration Limited has filed a Follow-on Equity Offering in the amount of MYR 3.55268 billion.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 710,535,941
Price\Range: MYR 5
Transaction Features: New Market Listing Price Target Changed • Jul 16
Price target increased by 17% to S$1.43 Up from S$1.23, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of S$1.41. Stock is up 18% over the past year. The company is forecast to post earnings per share of S$0.068 for next year compared to S$0.057 last year. Upcoming Dividend • Jul 02
Upcoming dividend of S$0.01 per share Eligible shareholders must have bought the stock before 09 July 2025. Payment date: 24 July 2025. Payout ratio is on the higher end at 87%, and the cash payout ratio is above 100%. Trailing yield: 3.8%. Lower than top quartile of Singaporean dividend payers (5.8%). In line with average of industry peers (3.9%). Recent Insider Transactions • May 30
Founder recently bought S$115k worth of stock On the 26th of May, Andy Luong bought around 100k shares on-market at roughly S$1.15 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Andy's only on-market trade for the last 12 months. Declared Dividend • May 24
Dividend of S$0.01 announced Shareholders will receive a dividend of S$0.01. Ex-date: 9th July 2025 Payment date: 24th July 2025 Dividend yield will be 4.4%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (87% earnings payout ratio) but not covered by cash flows (178% cash payout ratio). The dividend has increased by an average of 3.1% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 69% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 10
First quarter 2025 earnings released: EPS: S$0.014 (vs S$0.014 in 1Q 2024) First quarter 2025 results: EPS: S$0.014 (in line with 1Q 2024). Revenue: S$57.7m (up 6.8% from 1Q 2024). Net income: S$9.83m (flat on 1Q 2024). Profit margin: 17% (down from 18% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Apr 30
Upcoming dividend of S$0.02 per share Eligible shareholders must have bought the stock before 07 May 2025. Payment date: 23 May 2025. Payout ratio is on the higher end at 91%, and the cash payout ratio is above 100%. Trailing yield: 4.8%. Lower than top quartile of Singaporean dividend payers (6.0%). In line with average of industry peers (4.6%). Reported Earnings • Apr 09
Full year 2024 earnings: EPS in line with expectations, revenues disappoint Full year 2024 results: EPS: S$0.057 (down from S$0.089 in FY 2023). Revenue: S$242.1m (down 19% from FY 2023). Net income: S$40.6m (down 32% from FY 2023). Profit margin: 17% (down from 20% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. New Risk • Mar 08
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 91% Cash payout ratio: 161% Dividend yield: 4.6% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Price Target Changed • Mar 03
Price target increased by 9.3% to S$1.06 Up from S$0.97, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of S$1.07. Stock is down 22% over the past year. The company is forecast to post earnings per share of S$0.069 for next year compared to S$0.057 last year. Declared Dividend • Mar 03
Fourth quarter dividend of S$0.02 announced Shareholders will receive a dividend of S$0.02. Ex-date: 7th May 2025 Payment date: 23rd May 2025 Dividend yield will be 5.1%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (83% earnings payout ratio) but not covered by cash flows (173% cash payout ratio). The dividend has increased by an average of 3.8% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 36% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 01
Full year 2024 earnings: EPS in line with expectations, revenues disappoint Full year 2024 results: EPS: S$0.057 (down from S$0.089 in FY 2023). Revenue: S$242.1m (down 19% from FY 2023). Net income: S$40.6m (down 32% from FY 2023). Profit margin: 17% (down from 20% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Nov 27
Upcoming dividend of S$0.01 per share Eligible shareholders must have bought the stock before 04 December 2024. Payment date: 16 December 2024. Payout ratio is on the higher end at 83%, and the cash payout ratio is above 100%. Trailing yield: 5.5%. Lower than top quartile of Singaporean dividend payers (5.9%). In line with average of industry peers (5.3%). Declared Dividend • Nov 11
Third quarter dividend of S$0.01 announced Shareholders will receive a dividend of S$0.01. Ex-date: 4th December 2024 Payment date: 16th December 2024 Dividend yield will be 5.2%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (34% earnings payout ratio) but not covered by cash flows (129% cash payout ratio). The dividend has increased by an average of 8.1% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 27% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 09
Third quarter 2024 earnings released: EPS: S$0.015 (vs S$0.023 in 3Q 2023) Third quarter 2024 results: EPS: S$0.015 (down from S$0.023 in 3Q 2023). Revenue: S$64.9m (down 8.9% from 3Q 2023). Net income: S$10.4m (down 32% from 3Q 2023). Profit margin: 16% (down from 22% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 10.0% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 9% per year. Announcement • Nov 08
UMS Integration Limited Announces Third Interim Cash Dividend for the Financial Year Ending 31 December 2024, Payable on 16 December 2024 NOTICE IS HEREBY GIVEN THAT the Share Transfer Books and Register of Members of UMS Integration Limited will be closed on 6 December 2024, for the purpose of determining members' entitlements to the Third Interim Dividend of 1.0 cent per ordinary share (tax-exempt one-tier) for the financial year ending 31 December 2024. Payment of the Third Interim Dividend will be made on 16 December 2024. Upcoming Dividend • Oct 03
Upcoming dividend of S$0.01 per share Eligible shareholders must have bought the stock before 10 October 2024. Payment date: 25 October 2024. Payout ratio is on the higher end at 77%, and the cash payout ratio is above 100%. Trailing yield: 5.2%. Lower than top quartile of Singaporean dividend payers (5.9%). In line with average of industry peers (5.0%). Board Change • Sep 28
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 4 highly experienced directors. Independent Director Ah Phang was the last director to join the board, commencing their role in 2017. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Sep 19
Founder recently bought S$295k worth of stock On the 12th of September, Andy Luong bought around 300k shares on-market at roughly S$0.98 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Andy has been a buyer over the last 12 months, purchasing a net total of S$2.3m worth in shares. Major Estimate Revision • Aug 19
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from S$269.0m to S$254.0m. EPS estimate also fell from S$0.068 per share to S$0.061 per share. Net income forecast to shrink 6.6% next year vs 41% growth forecast for Semiconductor industry in Singapore . Consensus price target reaffirmed at S$0.97. Share price was steady at S$1.04 over the past week. Announcement • Aug 14
UMS Holdings Limited Announces second Interim Dividend (Tax-Exempt One-Tier) for the Financial Year Ending 31 December 2024, Payable on 25 October 2024 UMS Holdings Limited announced the Share Transfer Books and Register of Members of the Company will be closed on 14 October 2024, for the purpose of determining members' entitlements to the Second Interim Dividend of 1.0 cent per ordinary share (tax-exempt one-tier) for the financial year ending 31 December 2024. Payment of the First Interim Dividend will be made on 25 October 2024. Declared Dividend • Aug 14
Second quarter dividend reduced to S$0.01 Dividend of S$0.01 is 17% lower than last year. Ex-date: 10th October 2024 Payment date: 25th October 2024 Dividend yield will be 5.4%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (47% earnings payout ratio) but not covered by cash flows (247% cash payout ratio). The dividend has increased by an average of 8.1% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 23% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 13
Second quarter 2024 earnings released: EPS: S$0.013 (vs S$0.017 in 2Q 2023) Second quarter 2024 results: EPS: S$0.013 (down from S$0.017 in 2Q 2023). Revenue: S$56.0m (down 25% from 2Q 2023). Net income: S$9.32m (down 20% from 2Q 2023). Profit margin: 17% (up from 16% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 02
Upcoming dividend of S$0.012 per share Eligible shareholders must have bought the stock before 09 July 2024. Payment date: 24 July 2024. Payout ratio is a comfortable 75% but the company is paying out more than the cash it is generating. Trailing yield: 4.7%. Lower than top quartile of Singaporean dividend payers (6.3%). In line with average of industry peers (4.8%). Major Estimate Revision • May 17
Consensus revenue estimates fall by 24% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from S$352.5m to S$269.0m. EPS estimate fell from S$0.107 to S$0.068 per share. Net income forecast to shrink 4.8% next year vs 42% growth forecast for Semiconductor industry in Singapore . Consensus price target down from S$1.68 to S$0.97. Share price fell 20% to S$1.06 over the past week. Recent Insider Transactions • May 16
Group Financial Controller recently bought S$288k worth of stock On the 13th of May, Meng Chong Loh bought around 250k shares on-market at roughly S$1.15 per share. This transaction amounted to 36% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Meng Chong's only on-market trade for the last 12 months. Price Target Changed • May 14
Price target decreased by 17% to S$1.39 Down from S$1.68, the current price target is an average from 4 analysts. New target price is 31% above last closing price of S$1.06. Stock is up 15% over the past year. The company is forecast to post earnings per share of S$0.068 for next year compared to S$0.089 last year. Declared Dividend • May 13
Dividend of S$0.012 announced Shareholders will receive a dividend of S$0.012. Ex-date: 9th July 2024 Payment date: 24th July 2024 Dividend yield will be 4.4%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (72% earnings payout ratio) but not covered by cash flows (110% cash payout ratio). The dividend has increased by an average of 8.1% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 62% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 11
First quarter 2024 earnings released: EPS: S$0.014 (vs S$0.026 in 1Q 2023) First quarter 2024 results: EPS: S$0.014 (down from S$0.026 in 1Q 2023). Revenue: S$54.0m (down 33% from 1Q 2023). Net income: S$9.80m (down 44% from 1Q 2023). Profit margin: 18% (down from 22% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 8% per year. Announcement • May 11
UMS Holdings Limited Announces First Interim Dividend (Tax-Exempt One-Tier) for the Financial Year Ending 31 December 2024, Payable on 24 July 2024 UMS Holdings Limited announced that the Share Transfer Books and Register of Members of the Company will be closed on 10 July 2024, for the purpose of determining members' entitlements to the First Interim Dividend of 1.2 cent per ordinary share (tax-exempt one-tier) for the financial year ending 31 December 2024. Duly completed registrable transfers received by the Company's Share Registrar, at 5.00 p.m. on 10 July 2024 will be registered before entitlement to the First Interim Dividend is determined. Members whose Securities Accounts with The Central Depository (Pte) Limited are credited with shares at 5.00 p.m. on 10 July 2024 will be entitled to the First Interim Dividend. Payment of the First Interim Dividend will be made on 24 July 2024. Upcoming Dividend • Apr 30
Upcoming dividend of S$0.022 per share Eligible shareholders must have bought the stock before 07 May 2024. Payment date: 23 May 2024. Payout ratio is a comfortable 63% and this is well supported by cash flows. Trailing yield: 4.1%. Lower than top quartile of Singaporean dividend payers (6.2%). In line with average of industry peers (4.5%). Reported Earnings • Apr 11
Full year 2023 earnings: EPS in line with expectations, revenues disappoint Full year 2023 results: EPS: S$0.089 (down from S$0.15 in FY 2022). Revenue: S$299.9m (down 20% from FY 2022). Net income: S$60.0m (down 39% from FY 2022). Profit margin: 20% (down from 26% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 4.0%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Apr 09
UMS Holdings Limited, Annual General Meeting, Apr 25, 2024 UMS Holdings Limited, Annual General Meeting, Apr 25, 2024, at 10:00 Singapore Standard Time. Location: Empress Ballroom 5, Level 2, Carlton Hotel l Singapore, 76 Bras Basah Road, Singapore 189558 Singapore Singapore Agenda: To receive and adopt the Directors' Statement and Audited Financial Statements for the financial year ended 31 December 2023 and the Auditors' Report thereon; to approve a final tax-exempt (one-tier) dividend; to re-elect Ms Gn Jong Yuh Gwendolyn as Director; to re-appoint Auditors and authorise the directors to fix their remuneration; and to To authorize the directors to allot and issue shares. Reported Earnings • Mar 04
Full year 2023 earnings: EPS in line with expectations, revenues disappoint Full year 2023 results: EPS: S$0.09 (down from S$0.15 in FY 2022). Revenue: S$299.9m (down 20% from FY 2022). Net income: S$60.0m (down 39% from FY 2022). Profit margin: 20% (down from 26% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 4.0%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 18% per year. Declared Dividend • Mar 01
Third quarter dividend increased to S$0.022 Dividend of S$0.022 is 10.0% higher than last year. Ex-date: 7th May 2024 Payment date: 23rd May 2024 Dividend yield will be 4.1%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (60% earnings payout ratio) but not adequately covered by cash flows (91% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 51% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Feb 29
Price target increased by 14% to S$1.74 Up from S$1.52, the current price target is an average from 4 analysts. New target price is 20% above last closing price of S$1.44. Stock is up 38% over the past year. The company is forecast to post earnings per share of S$0.089 for next year compared to S$0.15 last year. New Risk • Feb 29
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 6.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (91% cash payout ratio). Shareholders have been diluted in the past year (6.0% increase in shares outstanding). Announcement • Feb 28
UMS Holdings Limited Proposes Final Dividend for Financial Year Ended 31 December 2023, Payable on 23 May 2024 UMS Holdings Limited Proposed Final Dividend of 2.2 cents per ordinary share (tax-exempt one-tier) for the financial year ended 31 December 2023. The Proposed Final Dividend, if approved at the forthcoming Annual General Meeting of the Company, will be paid on 23 May 2024. Upcoming Dividend • Nov 24
Upcoming dividend of S$0.012 per share at 4.0% yield Eligible shareholders must have bought the stock before 01 December 2023. Payment date: 15 December 2023. Payout ratio is a comfortable 60% and the cash payout ratio is 85%. Trailing yield: 4.0%. Lower than top quartile of Singaporean dividend payers (6.5%). In line with average of industry peers (4.1%). Announcement • Nov 11
UMS Holdings Limited Declares Third Interim Dividend for the Financial Year Ending 31 December 2023, Payable on 15 December 2023 UMS Holdings Limited announced the Share Transfer Books and Register of Members of the Company will be closed on 5 December 2023, for the purpose of determining members' entitlements to the Third Interim Dividend of 1.2 cent per ordinary share (tax-exempt one-tier) for the financial year ending 31 December 2023. Duly completed registrable transfers received by the Company's Share Registrar, In.Corp Corporate Services Pte. Ltd., 30 Cecil Street #19-08 Prudential Tower Singapore 049712 up to the close of business at 5.00 p.m. on 4 December 2023 will be registered before entitlement to the Third Interim Dividend are determined. Members whose Securities Accounts with The Central Depository (Pte) Limited are credited with shares at 5.00 p.m. on 4 December 2023 will be entitled to the Third Interim Dividend. Payment of the Third Interim Dividend will be made on 15 December 2023. Reported Earnings • Nov 11
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: S$71.3m (down 29% from 3Q 2022). Net income: S$15.3m (down 64% from 3Q 2022). Profit margin: 22% (down from 43% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Price Target Changed • Oct 26
Price target increased by 11% to S$1.50 Up from S$1.35, the current price target is an average from 4 analysts. New target price is 16% above last closing price of S$1.29. Stock is up 46% over the past year. The company is forecast to post earnings per share of S$0.09 for next year compared to S$0.15 last year. Upcoming Dividend • Oct 04
Upcoming dividend of S$0.012 per share at 3.8% yield Eligible shareholders must have bought the stock before 11 October 2023. Payment date: 26 October 2023. Payout ratio is a comfortable 40% and the cash payout ratio is 79%. Trailing yield: 3.8%. Lower than top quartile of Singaporean dividend payers (6.4%). In line with average of industry peers (3.9%). Price Target Changed • Sep 26
Price target increased by 13% to S$1.35 Up from S$1.20, the current price target is an average from 4 analysts. New target price is 5.3% above last closing price of S$1.28. Stock is down 1.5% over the past year. The company is forecast to post earnings per share of S$0.091 for next year compared to S$0.15 last year. Major Estimate Revision • Aug 21
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from S$0.103 to S$0.091 per share. Revenue forecast steady at S$316.0m. Net income forecast to shrink 22% next year vs 27% growth forecast for Semiconductor industry in Singapore . Consensus price target up from S$1.04 to S$1.20. Share price rose 7.8% to S$1.11 over the past week. Reported Earnings • Aug 15
Second quarter 2023 earnings released: EPS: S$0.017 (vs S$0.03 in 2Q 2022) Second quarter 2023 results: EPS: S$0.017 (down from S$0.03 in 2Q 2022). Revenue: S$74.4m (down 14% from 2Q 2022). Net income: S$11.6m (down 42% from 2Q 2022). Profit margin: 16% (down from 23% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 05
Upcoming dividend of S$0.01 per share at 4.7% yield Eligible shareholders must have bought the stock before 12 July 2023. Payment date: 27 July 2023. Payout ratio is a comfortable 35% and the cash payout ratio is 91%. Trailing yield: 4.7%. Lower than top quartile of Singaporean dividend payers (6.3%). Higher than average of industry peers (4.0%). Announcement • May 23
UMS Holdings Limited Approves Final Dividend for the Financial Year Ended 31 December 2022, Payable on 8 May 2023 UMS Holdings Limited at its AGM held on April 26, 2023 approved final dividend of 2.0 cents per ordinary share in respect of the financial year ended 31 December 2022. The dividend, if approved, would be paid on 8 May 2023. Major Estimate Revision • May 18
Consensus EPS estimates fall by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from S$350.5m to S$316.2m. EPS estimate also fell from S$0.125 per share to S$0.103 per share. Net income forecast to shrink 23% next year vs 21% growth forecast for Semiconductor industry in Singapore . Consensus price target down from S$1.33 to S$1.17. Share price was steady at S$0.97 over the past week. Price Target Changed • May 12
Price target decreased by 9.4% to S$1.20 Down from S$1.33, the current price target is an average from 4 analysts. New target price is 29% above last closing price of S$0.94. Stock is down 19% over the past year. The company is forecast to post earnings per share of S$0.11 for next year compared to S$0.15 last year. Announcement • May 11
Ums Holdings Limited Announces First Interim Dividend for the Financial Year Ending 31 December 2023, Payable on 27 July 2023 UMS Holdings Limited announced that Share Transfer Books and Register of Members of the Company will be closed on 14 July 2023, for the purpose of determining members' entitlements to the First Interim Dividend of 1.0 cent per ordinary share (tax-exempt one-tier) for the financial year ending 31 December 2023. Duly completed registrable transfers received by the Company's Share Registrar, In. Corp. Corporate Services Pte. Ltd., 30 Cecil Street #19-08 Prudential Tower Singapore 049712 up to the close of business at 5.00 p.m. on 13 July 2023 will be registered before entitlement to the First Interim Dividend is determined. Members whose Securities Accounts with The Central Depository (Pte) Limited are credited with shares at 5.00 p.m. on 13 July 2023 will be entitled to the First Interim Dividend. Payment of the First Interim Dividend will be made on 27 July 2023. Reported Earnings • May 11
First quarter 2023 earnings released: EPS: S$0.026 (vs S$0.029 in 1Q 2022) First quarter 2023 results: EPS: S$0.026 (down from S$0.029 in 1Q 2022). Revenue: S$80.8m (down 4.7% from 1Q 2022). Net income: S$17.4m (down 10% from 1Q 2022). Profit margin: 22% (down from 23% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Apr 28
Upcoming dividend of S$0.02 per share at 4.9% yield Eligible shareholders must have bought the stock before 05 May 2023. Payment date: 22 May 2023. Payout ratio is a comfortable 34% and the cash payout ratio is 86%. Trailing yield: 4.9%. Lower than top quartile of Singaporean dividend payers (6.4%). Higher than average of industry peers (4.4%). Reported Earnings • Apr 08
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: S$0.15 (up from S$0.08 in FY 2021). Revenue: S$372.4m (up 37% from FY 2021). Net income: S$98.2m (up 85% from FY 2021). Profit margin: 26% (up from 20% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) missed analyst estimates by 5.9%. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Mar 07
Consensus revenue estimates fall by 11% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from S$391.6m to S$350.5m. EPS estimate fell from S$0.153 to S$0.125 per share. Net income forecast to shrink 15% next year vs 9.0% growth forecast for Semiconductor industry in Singapore . Consensus price target down from S$1.41 to S$1.33. Share price fell 4.6% to S$1.03 over the past week. Reported Earnings • Mar 01
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: S$0.15 (up from S$0.08 in FY 2021). Revenue: S$372.4m (up 37% from FY 2021). Net income: S$98.2m (up 85% from FY 2021). Profit margin: 26% (up from 20% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) missed analyst estimates by 5.9%. Revenue is forecast to grow 7.6% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Semiconductor industry in Asia. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to S$1.10, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 20x in the Semiconductor industry in Asia. Total returns to shareholders of 51% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at S$1.29 per share.