UMS Holdings has reported record earnings of $42 million for 1HFY2022, up 22% over the year earlier period. Revenue in the same period was up 47% to $171.3 million.
The company plans to pay an interim dividend of one cent.
The company’s numbers were driven by strong demand for its main semiconductor segment, with revenue up 29% to $75.6 million. Its aerospace business, meanwhile, more than doubled.
Andy Luong, UMS' chairman and CEO says that the record numbers amid tough market conditions and geopolitical tensions demonstrates UMS’ resilience and success of its strategies.
“Our JEP acquisition not only gave us a shot in the arm by boosting our ability to ramp up production despite a tight labour situation in Malaysia but also lifted our top and bottomlines,” he says.
The company says its order forecasts “remain strong” as its key customer has recently given a bright outlook as it expects increased sales despite the impact of ongoing supply chain challenges in FY2022.
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This key customer has also announced accelerating of technology inflections which will enable it to outgrow the semiconductor market in the years ahead.
“This strong customer forecast heralds good news for UMS' growth momentum in the coming months,” says UMS.
UMS notes that some global chipmakers have softened their forecast and scaled down their capex plans in view of the expected global economic slowdown.
Despite this, UMS will carry on with its expansion plans with its new Penang factory scheduled for completion by end 2022. With the higher capacity, it will be positioned to take on new orders from potential new customers.
UMS closed at $1.21, up 0.83%.
