The positive outlook for UMS is underpinned by its position as a critical supplier to Applied Materials (AMAT), who contributed 93% of the company’s FY2020 ended December 2020 revenues.
UOB Kay Hian Research analyst Clement Ho has initiated coverage on UMS Holdings with a ‘buy’ call and TP of $1.65.In a research note dated March 16, Ho views UMS as a pure semiconductor play poised to ride the strong industry uptrend.
Despite supply chain disruptions due to Covid-19, the analyst notes that demand has remained resilient on the back of a growing need for semiconductor chips arising from 5G-related spending and the growth of data.
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