UMS Holdings posts record Q2 net profit at S$16.9m, boosted by global semiconductor demand

PRECISION engineering group UMS Holdings 558  : 558 0%posted a 46 per cent increase in net profit to a record S$16.9 million for the second quarter ended June 2021, on the back of strong global demand for semiconductors.

This was despite higher expenses across the board, as a result of the consolidation of Catalist-listed JEP Holdings, UMS said in a business update on Friday.

The company declared an interim dividend of one Singapore cent per share, as well as a special bonus issue of up to 134 million new ordinary shares on the basis of one bonus share for every four existing ordinary shares.

Revenue for the quarter rose 66 per cent to S$66.8 million, while the group logged a record half-yearly revenue of S$116.4 million for the six months ended June 2021.

Earnings per share for Q2 FY2021 stood at 3.17 Singapore cents, compared to 2.17 cents in the year-ago period.

UMS saw increased sales in the quarter, driven by robust capital expenditure by global wafer fabrication plants. Sales of semiconductor integrated systems rose 47 per cent to S$28.8 million, while revenue from component sales rose 69 per cent to S$29.7 million.

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The group also reported growth in all key geographical markets over the quarter. Revenue from Singapore rose 65 per cent, fuelled by higher shipments of semiconductor integrated systems, higher component sales, as well as the consolidation of JEP's semiconductor component business. JEP is now a 71.4 per cent-owned subsidiary.

Revenue from Malaysia jumped 188 per cent on the back of higher material distribution sales and the consolidation of JEP's tooling distribution sales.

UMS chief executive Andy Luong sounded a positive note on future growth, noting that global sales of semiconductor manufacturing equipment are forecasted to surpass US$100 billion next year. "These positive forecasts, coupled with strong guidance by our key customers, will mean brighter prospects ahead," he said.

UMS shares closed 0.57 per cent or one Singapore cent lower, at S$1.75, on Friday.

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