MAINBOARD-LISTED precision-engineering company UMS Holdings’ : 558 0%net profit for the first quarter ended Mar 31, 2022 rose 26 per cent year on year to S$19.4 million from S$15.4 million previously.

It also announced an interim dividend of 1 Singapore cent per share for the quarter ended March 31.

In its bourse filing on Tuesday (May 10), the group noted that its sales surge for the quarter was driven by the sustained increase in semiconductor demand and the consolidation of sales from JEP Holdings - which became a subsidiary of the group from Q2 2021 - bringing on board a new revenue stream from the aerospace business.

Revenue surged 71 per cent to S$84.7 million, while earnings per share worked out to 2.9 Singapore cent, up from 2.3 cents a year ago.

Semiconductor segment revenue was up 57 per cent to S$73.3 million, on the back of higher integrated system and component sales. The group also booked aerospace revenue of S$3 million in the quarter.

Sales from its other segments almost tripled - hitting S$8.4 million in Q1 2022 up by 193 per cent, attributing to contributions from its materials distribution subsidiary - Starke Singapore, the group’s water disinfection subsidiary Kalf Engineering, as well as JEP Industrades’ tooling distribution business.

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With the exception of the Taiwan, revenue from other key geographical markets grew significantly in the first quarter. Singapore was the best-performing, with sales surging 75 per cent to S$57.7 million, due to higher sales for semiconductor integrated systems, increased components for new equipment as well as consolidation of JEP's semiconductor component business.

Malaysia’s sales climbed 240 per cent to S$5.3 million, driven by higher material distribution sales and consolidation of JEP’s tooling distribution revenue. Taiwan was down 12 per cent to S$8.1 million due to lower sales of component spares because of supply chain constraints which caused material supply shortages in the industry.

UMS chief executive Andy Luong said the group's growth trajectory remains strong as it remains a beneficiary of accelerating capex demand from global wafer fabs.

“We have also benefitted from the group’s timely diversification and acquisition of JEP as well as the effectiveness of our team to manage the production challenges brought about by the Covid-19 pandemic and the global geopolitical tensions,” he added.

Luong also noted that the new factory in Penang, which will increase the group’s production capacity is scheduled for completion by end of 2022, and efforts to get additional power supply and manpower resources are also progressing as planned while discussions to resolve the tax issues with the Malaysian authorities are ongoing.

“In addition to the strong semiconductor market outlook, the group is ready to ride the gradual recovery in the aviation sector. JEP with its established track record in the aerospace industry stands to reap the gains from the aviation industry rebound as more countries are now reopening their national borders to international travel," he added.

Shares of UMS closed at S$1.14 on Tuesday, down S$0.01 or 0.87 per cent, before the announcement was made.