Excerpts from UOBKayHian report

UMS Holdings (SGX: 558)

UMS Holdings (UMS) 1H22 earnings of S$40m (+23% yoy) are above our expectations, forming 65% of our 2022F estimate as UMS continues to benefit from solid semiconductor demand worldwide. UMS’s order forecasts remain strong as its key customer expects increased sales despite ongoing supply chain challenges. We raised our 2022 and 2023 EPS by 27% and 35%. Maintain BUY with a 3%-lower target price of S$1.40 (reduce PE peg to mean of 11x 2023F, from 2SD of 15.5x 2022F).

1H22 earnings benefited from solid semiconductor worldwide

The company 1H22 earnings of S$40m (+23% yoy) are above our expectations, forming 65% of our full year estimate as UMS continues to benefit from the solid semiconductor demand worldwide and favourable tailwinds in the recovering aerospace sector.

Robust revenue growth across all sectors

For 1H22, semiconductor sales increased 41% to S$149m, while aerospace...