UMS Integration’s revenue for 3QFY2025 and 9MFY2025 came in 9% y-o-y lower and 5% y-o-y higher at $59.3 million and $184.3 million respectively.
In his Nov 11 report, Alfie Yeo of RHB Bank Singapore remains positive on UMS Integration as he sees it as a “long-term beneficiary of the semiconductor sector’s growth”.
“Growth over the short to medium term should be driven by an increase in semiconductor equipment spending, ramp-up in new customer orders, and margin expansion,” Yeo adds.
UMS Integration is now trading at a PEG of less than 1, which is deemed “compelling” at 19 times FY2026 P/E ratio against FY2024 to FY2027 earning growth CAGR of 20%, and below the peer average of 21 times.
Therefore, Yeo maintains his “buy” call on UMS Integration with a new target price of $1.86, which represents a 22% upside.
Meanwhile, Jarick Seet of Maybank Securities is holding on to his “buy” call on UMS Integration with an unchanged target price of $1.59 as he rolls forward his valuation based on 20 times FY2026 P/E ratio.
In his Nov 11 report, Seet notes that UMS Integration’s 4QFY2025 should improve due to the ramp up of the new customer as more parts are being qualified.
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“Going forward, their old key customers have guided for lower orders in 1HFY2026 and higher orders in 2HFY2026. As a result, we cut our FY2025 and FY2026 numbers by 15.5% and 10%,” Seet adds.
The analyst notes that UMS Integration’s management has indicated the capex cycle is almost over and more dividends could potentially be awarded to shareholders.
Finally, DBS Group Research (DBS) analyst Ling Lee Keng believes that UMS Integration outlook remains upbeat, supported by multiple growth drivers such as major production ramp-up, stable performance from key existing customers, strong industry tailwinds and positioning as a second-order AI beneficiary, gaining from its exposure to leading semiconductor customers.
Ling is maintaining her “buy” call on UMS Integration with a higher target price of $1.85 as she rolls forward her 25 times PE/ratio valuation peg to FY2026 earnings, a level above +2 standard deviation and close to the early 2024 peak.
She also believes that UMS Integration is a direct beneficiary of MAS’ equity market development programme (EQDP). Meanwhile, the Bursa Malaysia secondary listing and inclusion in the SGX iEdge Next 50 Index are expected to further elevate market visibility and investor interest.
As at 10:30 am, shares in UMS Integration are trading 1 cent higher or 0.7% up at $1.45, or 38.1% up year to date.
