SEMICONDUCTOR company UMS Holdings on Friday (Nov 11) reported a 181 per cent increase in net profit for the third quarter on the back of stronger revenue.
Net profit for the three months ended Sep 30, 2022, rose to S$42.5 million from S$15.1 million in the year-ago period. On a per share basis, earnings rose to S$0.0635 in Q3 FY2022 from S$0.0284 a year earlier.
An interim dividend of S$0.01 per share was declared, unchanged from the previous year.
Revenue for the third quarter rose 48 per cent on-year to S$100.1 million, the first time its quarterly revenue has crossed the S$100 million mark, with all business segments delivering growth.
Revenue in Q3 was also around 15.5 per cent higher than the revenue reported in Q2 FY2022, mainly due to UMS' semiconductor segment
For the first nine months of 2022, UMS revenue rose 48 per cent to S$271.4 million, beating the sales figures for the whole of last year. Net profit for the first nine months was also stronger, rising 73 per cent on year to S$82 million.
"Our group sales and earnings for Q3 FY2022 and 9M FY2022 have smashed all previous records,"said Andy Luong, UMS' chairman and chief executive officer.
"Our outlook for the next six months remains robust as business continues to be strong with a huge order backlog from our key customer to be produced and delivered," he added. "The slightly lower forecast given by our key customer recently is unlikely to have a significant impact on the group's performance. The group is ready to take on more orders from new customers."
The group's net asset value per share grew to S$0.5065 as at Sep 30, 2022 from S$0.4183 in December 2021.
UMS also said its expansion plans are "progressing well", and construction of the new factory in Penang is on schedule to be completed by the end of 2022 It is preparing to ramp up production from the middle of 2023. (see amendment note note)
The counter rose 9.7 per cent on Friday to close at S$1.07, before the earnings announcement.
Amendment note: An earlier version of this story said the new factory in Penang is on schedule to be completed by the end of 2023. It should be by the end of 2022.