UMS Group focuses on delivering equipment manufacturing and engineering services to Original Equipment Manufacturers (OEM) of semi-conductors and related products. The group has its headquarters in Singapore, and manufacturing facilities in Singapore, Malaysia and USA.

The group has suffered from the trade war which has caused its revenue to drop. From the latest half-year report, its revenue dropped by 19% to $29 million, while net profit dropped 43% to $14.7 million.

However, free cash flow increased a whopping 208% to $15.1 million. UMS has been paying out dividends in the range of SGD 0.05 – 0.065 per share since 2010.

It has a high dividend payout ratio of 74.8%. With the current strong cash flow UMS is enjoying, shareholders will at least receive the lower range of the dividends.

UMS last closed at $0.805, which values it at a P/B of 1.86 and gives it a