UOB Kay Hian analyst John Cheong maintained a Buy rating on UMS Holdings yesterday and set a price target of S$1.73.
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John Cheong has given his Buy rating due to a combination of factors including UMS Holdings’ strong earnings performance and positive future outlook. The company reported a significant increase in its core earnings, which grew by 45% year-over-year, excluding foreign exchange losses. This growth is attributed to a 20% rise in revenue, driven by robust demand in the semiconductor segment and a favorable change in product mix, leading to improved gross margins.
UMS Holdings is also well-positioned to benefit from the global rebound in the semiconductor industry, particularly with the AI-driven demand and the shift of supply chains to regions like Malaysia and Singapore. The company’s strategic initiatives, such as securing new projects with key customers and exploring a bonus issue to enhance shareholder value, further support the positive outlook. These factors collectively underpin John Cheong’s confidence in recommending a Buy rating for UMS Holdings.