UMS Holdings Q3 net profit rises 17% amid 'explosion' in global chip demand

MAINBOARD-LISTED UMS Holdings' 558 net profit rose to S$15.1 million for its third quarter ended Sep 30, 2021, up 17 per cent from the S$12.9 million posted last year.

This comes amid strong growth in the global semiconductor industry and the company's consolidation of JEP Holdings.

UMS had previously closed its mandatory unconditional cash offer at a final offer price of S$0.20 per share on Jun 2, with valid acceptances representing 71.66 per cent of the total number of JEP's shares.

Earnings per share stood at S$0.0284 for the quarter, from S$0.0243 a year earlier.

Revenue for the quarter grew 50 per cent to S$67.6 million, up from S$45.2 million the year before.

The precision engineering group's semiconductor segment posted a 41 per cent increase in revenue for the quarter to S$59.7 million. The company noted that while its semiconductor component sales soared by 99 per cent to S$37.8 million, its semiconductor integrated systems sales eased 6 per cent to S$22 million due to the Malaysian government's tighter Covid-19 restrictions, temporarily constraining production in August and September this year.

The company has proposed an interim dividend of S$0.01 cent per share for Q3 FY201, up from S$0.005 per share paid in the same period last year in view of its "exceptional" performance. Year-to-date, UMS shareholders have received S$0.03 in dividends and 1 bonus share for every 4 existing ordinary shares.

For the 9 months ended Sep 30, 2021, revenue grew by 53 per cent to a record-high of S$184 million, while net profit rose 35 per cent to S$47.4 million year-on-year.

UMS chairman and chief executive Andy Luong said that the company has benefited from surging global chip demand and sustained growth in capital expenditures investments by foundries in its key markets.

"This powerful momentum, driven by the explosion in global chip demand in the past months will spur the semiconductor market to substantial growth for the full year 2021 and beyond," he said.

UMS shares rose 5.3 per cent, or S$0.07 to close at S$1.38 on Friday (Nov 12), before the business update was released.