UMS Integration, a provider of high precision components for semiconductor equipment manufacturers, is poised for significant growth as it anticipates meeting its double-digit revenue growth target for the second quarter of 2025, according to a UOB Kay Hian report. The company has reported healthy orders from both new and existing customers, which are expected to drive earnings to an estimated $8 million (S$11 million), marking a 12% year-on-year increase. This growth comes as UMS resolves previous supply chain disruptions and benefits from its ability to complete manufacturing processes in-house.
The company’s dual listing on Bursa Malaysia, set to commence on 1 August 2025, has garnered strong investor interest, potentially narrowing the valuation gap with its Malaysian peers. Currently, UMS trades at a 25% discount compared to its Malaysian counterparts, with a forecasted price-to-earnings ratio of 18x for 2026, versus 25x for its peers. The dual listing is expected to enhance liquidity and attract institutional investors who are mandated to invest in Bursa-listed stocks.
UMS is also increasing its market engagement ahead of the dual listing by participating in roadshows, hosting plant visits, and engaging with media and social media influencers. The company maintains a “Buy” recommendation with a revised target price of $1.27 (S$1.73), reflecting a 31% increase based on improved earnings quality and the anticipated benefits of the dual listing.
“`
