The company’s revenue from Malaysia surged 91% y-o-y due to more orders from the new key customer. “UMS Integration is working on many NPIs (new product introductions) with its new key customer to expand product offerings coupled with the upbeat forecast for FY2026,” says Seet in his March 2 note.
UMS Integration’s FY2026 revenue from its new client to surge further by 100% y-o-y as the ramp up continues for more products. UMS Integration’s management also expects revenue contribution from the new client to double in FY2026 and more in FY2027.
Meanwhile, UMS Integration recently renewed its Integrated System (IS) contract with its existing key customer for another 3 years. In Seet’s perspective, he believes this will enable the company to benefit from the robust growth in demand from this customer.
While revenue from Singapore dipped y-o-y 4% in FY2025, Seet predicts that this could potentially start to increase again in FY2026 and FY2027 due to the AI capex cycle.
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“They have also been chosen by the customer to be one of the key suppliers for the next generation packaging system, which could potentially boost their volumes going forward. We expect 15-20% y-o-y revenue growth for this customer,” says Seet.
As a result, he has raised his forecast on UMS Integration’s earnings by 2.9% and 10.7% for FY2026 and FY2027 respectively. Seet is keeping a “buy” call with a higher target price of $1.88 on UMS Integration as he rolls forward his valuation basis on a blended 25 times FY2026 and FY2027 P/E.
As of 10.05am, shares in UMS Integration are trading 6 cents higher, or 4% up at $1.56.
