InvestIdeas

Not vested

Singapore Hot Stocks-UMS up on dual listing plans in Korea

SINGAPORE, Oct 22 (Reuters) - Shares of Singapore chip equipment maker UMS Holdings rose as much as 10.6 percent in early trade on Friday as investors were bullish about its plans to list in South Korea.

At 0332 GMT, UMS shares were up 7.5 percent at S$0.505 on a volume of 34.2 million shares.

"It went up because of its plans to do a dual listing in Korea. It is ongoing and investors think that the response to the dual listing will be good," said a local trader.

UMS said it is proposing to issue depository receipts on the KOSDAQ market of the Korea Exchange to tap into different equity markets, grow its overseas customer base and raise capital.

[ID:nSNZ5zddW6} "Valuations for such companies in Korea are better. The Korean peers trade at a higher price-to-book ratio than UMS, which is trading at slightly under one time," another Singapore trader said.


Source: Reuters

This shd be a high beta stock (for Winston consideration).

Latest Q3 result is still decent w 3ct div this year so far. Expecting a final div.

Stock rebounded from 20+ct to a high of 40ct yesterday...but still far from its recent high.

Momentum is there...very obvious, no?

I don't know whether someone follows this co. actively.
I found it interesting from a mere accounting point of view : NAV per share increases regularly, dividend is correct and easily supported. Net Debt is nil. Profitability is good. (see enclosed doc for numbers)

Negatives points:
- small size obviously
- the bad results in 2009 which have to be kept in mind.

Along with CSE Global, MTQ (which recently posted some decent results), this co. is among the small singaporeans industrials that I closely follow.
It went in free fall recently. The reasons were not very clear to me.
The co. issued today a clarification : http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_96EE85E169700EA4482579F80035D7C0/$file/Announcement_UMS_Clarification.pdf?openelement

Still this company continues to appear valuable to me.

Results for 1Q.FY12 are in :
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_1E0B47ACEB233E3B482579FF0038B24A/$file/UMS_Q1FY2012_Results_Announcement.pdf?openelement

The market seems to appreciate. Perhaps it views the decrease in activity as less than what it feared.

A few points :
- revenue 32 MS$, -8% vs LY.
- net profit 6 MS$, -20% vs LY.

The co stated that activity is growing from a low point in automn 2011.
The co also stated that they have adopted a quarterly dividend policy.

Hi Stilicon,

in your opinion - the results of UMS are good?

not vested

UMS’s share price recently took a sharp plunge from the 50 cents level after Founder and Chairman Andy sold 8+ mln shares in the open market (around the 47-48 cents level) before the stock when ex-dividend (3 cents a share).

He still holds 28.36% of the company.

We have not rated UMS since May’07 when our last recommendation was a HOLD.

Source: Lim & Tan

http://www.remisiers.org/cms_images/res ... -daily.pdf

Hi Aspellian,
I wouldn't say the results are goods. Only the perspectives announced are positive.
But I would say that UMS remains inexpensive, and its industry shouldn't have very severe downturns. So, I will remain vested.

UMS 1Q earnings treble to $11.2 mil on doubling of sales
http://www.theedgemarkets.com.sg/ums-1q ... ling-sales

ums-holdings-1h-earnings-double-227-mil-proposes-bonus-issue-and-interim-dividend
https://www.theedgesingapore.com/ums-ho ... m-dividend