UOB Kay Hian analyst John Cheong maintained a Buy rating on UMS Holdings today and set a price target of S$1.73.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
John Cheong has given his Buy rating due to a combination of factors that indicate a positive outlook for UMS Holdings. The company is expected to achieve double-digit revenue growth in the second quarter of 2025, driven by robust orders from both new and existing customers. This growth is further supported by UMS’s ability to resolve previous supply chain disruptions and maintain healthy profit margins through its comprehensive in-house manufacturing capabilities.
Another significant factor contributing to the Buy rating is UMS’s upcoming dual listing on Bursa Malaysia, which has generated strong investor interest. This move is anticipated to narrow the valuation gap between UMS and its Malaysian peers, as the company currently trades at a discount. Additionally, UMS’s attractive dividend yield and increased market engagement efforts, such as roadshows and media coverage, are expected to enhance its visibility and appeal to investors, further supporting the positive outlook for the stock.