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Semicon is turning around.. Nasdaq has been going up and led by many tech semicon stocks.
Applied Material Changi Manufacturing Plant will be ready by Dec 2009.
And I believe UMS is one of key supplier to Applied..
Perhaps time to look into this semicon stock?
UMS Holdings
May 23 close: $0.255
OCBC Investment Research, May 23
UMS Holdings posted yet another set of weak quarterly results last week, with turnover down 31 per cent y-o-y (and down 20.1 per cent q-o-q) to $25.1 million, again dragged down by reduced contributions from the semiconductor industry. On a segmental basis, the semicon business reported revenue of $19.1 million, down 33.9 per cent y-o-y or 23.7 per cent q-o-q, while contract equipment manufacturing (CEM) sales slipped 20 per cent y-o-y or 6.4 per cent q-o-q to $7.5 million.
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Moving forward, the management expects the global semicon equipment industry to remain soft in FY2008, given the uncertainty in the overall semicon industry and weak US economic conditions.
In view of the weaker semicon outlook, UMS has been taking pre-emptive steps to expand into new businesses - aerospace, oil and gas, and renewable energy. We understand that the UMS Aerospace facility at Changi is now ready to take on contracts for global aerospace companies, and the Penang campus is due to be operational by FY2009. The Penang plant, which is being qualified by a Canadian solar energy giant for the production of solar chambers, will signify UMS's nascent entry into the renewable energy sector.
Nevertheless, we note it will take a while to reduce its considerate exposure to the weak semicon segment, which made up about 76 per cent of Q1 2008 sales. Hence, we see the need to pare our FY2008 revenue by 7.3 per cent and our earnings estimate by 39.3 per cent to reflect the forward contract losses. Together with more conservative eight times FY2008 PE, we derive a fair-value estimate of $0.24. Downgrade to 'hold' from 'buy'.
HOLD
Promising?? STI has regain lost ground over the past few days, and UMS is trading near all time low!
one of the promising tech... :)
This is a very well run company with very good potential. It is cheap at current valuation given no change in the fundamental.
UMS is building-up it Assets. Factories in Malaysia, Changi and Aerospace-hub.
Let hope it starts to pick-up again. A good company with huge potential.
UMS Holdings (09 Jul 2007) By Carey Wong Mon, 9 Jul 2007, 08:48:20 SGT Market Pulse: UMS Holdings (09 Jul 2007) FOCUS UMS Holdings Limited: Prospecting for long-term growth Summary: UMS Holdings Limited (previously known as Norelco UMS) was created via the merger between Norelco Centreline and UMS Semiconductor. It has two core businesses - semiconductor equipment and contract equipment manufacturing (CEM). Despite recent growth downgrade for the semicon industry this year, UMS still expects the bulk of its revenue to come from its semiconductor division, and views the slowdown in the sector not as a threat but an opportunity to get more outsourcing orders. UMS also expects its CEM division to increasingly take up a bigger portion of overall sales, rising from the 19.8% in FY06 to as much as 30% when the new initiatives into oil & gas and the aerospace industries gain more traction in FY08. While the near-term prospects remain slightly muted, we think that investors should take a longer term view and look beyond FY07 to FY08 as that would be when everything will come together for the company. Hence we are initiating our coverage on the company with a long-term BUY recommendation with a fair value of S$0.80, based on 11x FY08 PER. This is in line with the industry average of other small to mid-cap electronics and manufacturing companies as UMS is still fairly new to the oil & gas sector. And depending on how well UMS executes these new initiatives, we see room for future upgrades. (Carey Wong) For more information on the above, visit www.ocbcresearch.com for the detailed report.
retake lost ground at .645...
finally... going up to .8 :) same target as me...
Hoist the sail......... full speed ahead!
OCBC research has called for a Buy with a target price of 0.80 and it also mentioned that there is more room of improvement in the pricing if things are clearer as time goes by.
Time to rock and roll...
no one notice this yet?
building up momentum.... got to watch this...
Let hope it is able to sustain and move higher.
Suddently Jump Up ??
Agreed is a good stock with great potential (Precision Engineering).
Further upside can only happen if it is able to clear the 0.625 with good vol. At this moment, I would think it is still moving on sideway with support level at 0.58.
It?s a good company to hold, future is the Aerospace & Oilfield high precision complex components manufacturing. Cash rich, with cash equivalents of & 32.5Mil. march 07. Co. brought back shares of 15 mil ($0.41 -$0.58) from Jun 06 to April 07, total shares 371 mil. Main Business is Semicon and contract equipment manufacture. If Applied Materials (US) share price is up above $20.00 then UMS will have an upward push. Vested for long.
Momentum halted today?