UMS is now trading at a PEG of less than 1, which is deemed "compelling" at 18x FY2026F P/E against our FY2024 - FY2027 earnings growth CAGR of 20% and below the peer average of 21x.
Alfie Yeo of RHB Bank Singapore has initiated coverage on UMS Integration with a "buy" call and $1.85 target price, with a view that this company is 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," states Yeo in his Oct 31 note.
