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From DBS RESEARCH
New plant completed in end-2023 to cater to growing orders from  New Customer riding on the China +1 strategy.  The newly-completed plant will commence volume production from March 2024 for its new customer and expects an uptick in order flow in the coming months. With its main production facilities in Malaysia, UMS is a key beneficiary of the trade diversification trend. On the back of the China-US trade tensions, more companies are looking to diversify their manufacturing footprints. The completion of the new plant in Penang offers new growth opportunities.  BUY TP raised to S$1.84

From UOBKH
2023: Positive Dividend Surprise Starting Mass Production For  New Customer  1023 earnings of S$16m (+3% gog-3% yoy) were in line with expectations, with 2023 earnings of S$60m meeting our full-year estimate. UMS continued to show a sequentis recovery for the second consecutive quarter as revenue and gross margin improved 90q. UMS lifted its final dividend by 10% and maintained a positive outlook, supported by positive guidance of its key customers and starting of mass production for a  New Customer  Maintain BUY. Target price: S$1.78 

From CGS INTERNATIONAL
Investments into fab construction projects which hit a historical high in FY2023 are expected to continue at a higher level in FY2024. Furthermore, UMS has also secured an in-principle agreement with its  New Customer  for a new renewable three-year contract. This  New Customer  contract win will boost UMS&rsquo s buoyant outlook as its new Penang facilities will be ready for volume production by September. The production ramp-up will enable it to take on new orders from its new customer which is estimated to reach at least US$30 million next year.

Reiterate Add with a higher S$1.76 .  Our FY24-25F forecasts are unchanged and we introduce our FY26F forecasts. As the semicon industry recovers and UMS&rsquo s business with its  New Customer  gains traction, EPS growth could accelerate to an average 13.8% over FY24-26F. Re-rating catalysts: securing more new customers and further orders from new customers for its new Penang plant, improving factory utilisation rates, and return of orders for aircraft components. 

From MAYBANK
UMS also renewed its integrated system contract with its key customer (AMAT) until the end of 2025 and received an in-principle agreement with a  New Customer  for a three-year contract with a renewal option. This would, conservatively, translate to an additional S$30 million contribution in the next financial year and S$300 million topline contributions per annum in the next three to five years. If all goes well, FY2024 could potentially be a good year for UMS.

From DBS RESEARCH
New plant completed in end-2023 to cater to growing orders from  New Customer riding on the China +1 strategy.  The newly-completed plant will commence volume production from March 2024 for its new customer and expects an uptick in order flow in the coming months. With its main production facilities in Malaysia, UMS is a key beneficiary of the trade diversification trend. On the back of the China-US trade tensions, more companies are looking to diversify their manufacturing footprints. The completion of the new plant in Penang offers new growth opportunities.  BUY TP raised to S$1.84

From UOBKH
2023: Positive Dividend Surprise Starting Mass Production For  New Customer  1023 earnings of S$16m (+3% gog-3% yoy) were in line with expectations, with 2023 earnings of S$60m meeting our full-year estimate. UMS continued to show a sequentis recovery for the second consecutive quarter as revenue and gross margin improved 90q. UMS lifted its final dividend by 10% and maintained a positive outlook, supported by positive guidance of its key customers and starting of mass production for a  New Customer  Maintain BUY. Target price: S$1.78 

From CGS INTERNATIONAL
Investments into fab construction projects which hit a historical high in FY2023 are expected to continue at a higher level in FY2024. Furthermore, UMS has also secured an in-principle agreement with its  New Customer  for a new renewable three-year contract. This  New Customer  contract win will boost UMS&rsquo s buoyant outlook as its new Penang facilities will be ready for volume production by September. The production ramp-up will enable it to take on new orders from its new customer which is estimated to reach at least US$30 million next year.

Reiterate Add with a higher S$1.76 .  Our FY24-25F forecasts are unchanged and we introduce our FY26F forecasts. As the semicon industry recovers and UMS&rsquo s business with its  New Customer  gains traction, EPS growth could accelerate to an average 13.8% over FY24-26F. Re-rating catalysts: securing more new customers and further orders from new customers for its new Penang plant, improving factory utilisation rates, and return of orders for aircraft components. 

From MAYBANK
UMS also renewed its integrated system contract with its key customer (AMAT) until the end of 2025 and received an in-principle agreement with a  New Customer  for a three-year contract with a renewal option. This would, conservatively, translate to an additional S$30 million contribution in the next financial year and S$300 million topline contributions per annum in the next three to five years. If all goes well, FY2024 could potentially be a good year for UMS.