A BOOST in semiconductor sales lifted precision engineering firm UMS Holdings' net profit by 43 per cent to S$11.6 million for the second quarter ended June 30, 2020.

 

Revenue was up 35 per cent to S$40.3 million on the back of a 41 per cent increase in revenue from the semiconductor segment.

 

The higher semiconductor revenue was driven by higher integrated system sales, which rose 65 per cent to $19.6 million. Revenue from component sales was up by 22 per cent, while sales in the " others" segment dipped 13 per cent mainly due to lower sales from UMS' subsidiary Kalf Engineering.

 

Sales in Singapore jumped 60 per cent from semiconductor integrated system sales, while higher component sales drove the 113 per cent rise in sales for the " others" market.

 

Taiwan recorded a 20 per cent increase in revenue because of increased semiconductor component sales. But sales in the US and Malaysia markets softened by 7 per cent and 44 per cent respectively. The dip in US revenue was due to lower component sales for new systems built.

 

Gross material margins dipped to 50.8 per cent compared with 53.1 per cent a year ago due to changes in the product mix, which included a higher proportion of integrated system sales.

 

Share of profits from the group' s associate JEP Holdings increased 12 per cent to S$900,000. UMS had further invested S$1 million in Catalist-listed JEP.

 

Earnings per share was 2.17 Singapore cents, compared with 1.51 cents a year ago. UMS is proposing a tax-exempt interim dividend of one Singapore cent per share, to be paid on Oct 26, 2020.

 

Andy Luong, UMS chairman and CEO, said the group' s performance reflects the sustained and strong improvement in customer demand as well as positive returns from its diversification strategy.

 

However, the group is mindful that there are still uncertainties created by the deepening US-China trade war, currency volatility and the resurgence of Covid-19 cases worldwide, he said.

 

" While the near-term outlook continues to be uncertain, the long-term prospects remain bright due to increased capex spending for the acceleration of 5G, artificial intelligence and other technology-driven developments. These strong growth figures augur well for the group which is a beneficiary of the vibrant chip equipment manufacturing market.&rdquo