UMS HOLDINGS LIMITED (SGX:558)
UMS Holdings - Charging Higher
Remain positive on semiconductor
- UMS HOLDINGS (SGX:558) is now witnessing signs of an upturn in the overall semiconductor industry as demand is picking up with chip inventories easing and new technological disruptors driving the growth of new products and capabilities. The successfully renewed integrated system business contract with its key customer, AMAT, for another three years helps to strengthen earnings visibility.
- We remain positive on the turnaround for the semiconductor segment and expect the sales momentum to continue.
- Maintain BUY with a higher Target Price of S$1.08, pegged to smaller peers’ average of 14x PE (Prev 13x), in line of re-rating of peers. See UMS Holdings Share Price; UMS Holdings Target Price; UMS Holdings Dividend History.
Where we differ:
- We are more positive on the semiconductor outlook and expect UMS to trade in line with its smaller peers’ PE of 14x on FY20F earnings.
Potential Catalysts:
- Stronger recovery in semiconductor equipment sales, client diversification, earnings-accretive M&As. See UMS Holdings Analyst Reports.
- See attached PDF report for complete analysis on UMS HOLDINGS (SGX:558).
- See also recent SGX Market Update: 5 Tech & Hardware Stocks Amongst Last Week’s SGX Most Active 50.
Lee Keng LING
DBS Group Research
|
https://www.dbsvickers.com/
2019-11-29
SGX Stock
Analyst Report
1.08
UP
1.000
