UMS announces interim dividend as Q1 net profit rises 53% to S$10.7m

UMS Holdings on Tuesday recorded a first-quarter rise in net profit of 53 per cent to S$10.7 million, boosted by better performance in its core business of manufacturing high precision front-end semiconductor components.  

The mainboard-listed company also announced an interim dividend of one Singapore cent per share for the quarter ended March 31. 

UMS chairman and chief executive Andy Luong said: "The group's first-quarter performance demonstrates the robust improvement in customer demand. The higher profitability and healthy cash flow reflect our strategic focus in driving value for our shareholders, even during tough times."

But he warned that the strong start to the year may now be "moderated" by market uncertainty from the ongoing coronavirus outbreak. In addition, the group expects some challenges in the near term due to supply-chain disruptions, manpower constraints and other issues rising from the virus outbreak. 

To cope with the impact of the pandemic, Mr Luong said UMS will "sharpen its production efficiencies and supply networks". 

UMS' first-quarter revenue was up 22 per cent year on year to S$34.9 million, supported by a rise in its key semiconductor business segment. That segment recorded a 17 per cent rise in sales to S$31.7 million. 

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But revenue declined quarter on quarter, mainly due to the movement control order in Malaysia, which led to the company's Malaysia operations being halted temporarily from March 18 to April 6. UMS' Penang facilities resumed operations on April 29. 

Raw material purchases and subcontractor charges for the quarter more than doubled to S$15.2 million, from S$6.8 million in the preceding year. 

Earnings per share for the quarter stood at 2.01 Singapore cents, up from 1.31 cents in the previous year. 

Shares of UMS, trading cum-dividend, closed down 1.24 per cent to S$0.795 before the announcement.