UMS Holdings
Buy
DBS Group Research | April 15 |
April 15 close: S$0.63
Target price: S$0.73
INITIATE with "buy" and target price of S$0.73 based on discounted cash flow; entrenched relationship with Applied Materials provides earnings stability and underpins high yield. UMS has partnered Applied Materials for more than a decade. Notably, despite its exposure to a cyclical industry, UMS's earnings have stabilised significantly since it was awarded the Endura contract in 2010. The group has also been generating stable cash flows (even after paying dividends), which coupled with its strong cash position of nine Singapore cents net cash per share and low capital-expenditure needs, provides further security...
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