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UMS Holdings Q1 net profit inches up 2% to S$11.4 million

PRECISION engineering firm UMS Holdings has reported a first-quarter net profit of S$11.4 million, a slight increase of 2 per cent from the same period last year.

In the three months ended 31 March, the group saw a 10 per cent decrease in revenue to S$37.5 million.

Revenue from its semiconductor business fell 9 per cent.

UMS also suffered from a weaker US dollar, as most of the group's revenues are denominated in US dollars, which depreciated against the Singdollar compared to the first quarter last year.

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Gross material margins improved from 51 per cent to 57 per cent, on the back of a more favourable sales mix, as UMS benefitted from higher component sales compared to integrated systems sales.

UMS has proposed an interim dividend of one Singapore cent, unchanged from a year earlier.

Earnings per share was 2.13 Singapore cents, up from 2.08 Singapore cents in the same period last year.

Net asset value per share rose from 40.10 Singapore cents to 42.41 Singapore cents.

The company has also registered a maiden profit contribution of S$16,000 from its newly acquired associate, Catalist-listed JEP Holdings.

Andy Luong, chief executive of UMS Holdings, said: "We are confident that the wave of IOT (Internet of Things), AI (Artificial Intelligence) and big data growth will stay as smart products and smart cities will continue to flourish. UMS, which is a beneficiary of this favourable uptrend, will therefore forge ahead with its expansion plans and efforts to improve performance."

Shares of UMS Holdings closed unchanged at S$1.04 on Friday, before the results were announced after market close.