UMS Holdings has reported earnings of $15.4 million for the 1QFY2021 ended March, representing 44% growth y-o-y.
This translates to earnings per share (EPS) of 2.88 cents, compared to 2 cents for the 1QFY2020. The group has declared an interim dividend of 1 cent per share.
The increased earnings follow a surge in revenue for the period to $49.6 million, 42% higher y-o-y on the back of a sustained increase in semiconductor demand. Semiconductor Integrated System sales surged 75% y-o-y to $22.6 million in the 1QFY2021, while component sales grew 28% y-o-y to $24.1 million.
This was partially offset by sales in its "others" segment which dipped 9% y-o-y due to lower revenue from its subsidiary, Starke Singapore.
In its 1QFY2021 business update dated May 10, the group highlights that revenue from its US market dipped 14% y-o-y due to lower component sales. Nonetheless, other key markets showed strong growth including Malaysia (+93%), Taiwan (+70%) and Singapore (+50%)
Gross material margins remained stable at 53.1% for the 1QFY2021, compared to 53.3% in 1QFY2020. To that end, pbt grew 42% y-o-y to $16.8 million, in tandem with the stronger revenue.
SEE:JEP Holdings receives unconditional offer from UMS Holdings at 20 cents per share
Associate company JEP Holdings Ltd (JEP) contributed $0.3 million to the Group's bottom line, a 70% fall y-o-y which UMS attributes to “challenges faced in the aerospace industry caused by the ongoing global Covid-19 pandemic”.
However, the group benefited from a foreign exchange gain of $1.3 million, though this was partially offset by a provision for project loss related to Kalf Engineering.
UMS reported net cash from operating activities of $8.7 million in the 1QFY2021, while net cash balance rose by $9.1 million to $47.2 million as at March 31.
For its outlook, the group expects to continue riding the upside for the global semiconductor industry, which is forecast to hit record highs in fab equipment spending until 2022.
UMS also referred to its recent offer to acquire Catalist-listed JEP Holdings as part of its steps to diversify revenue streams.
UMS chairman and CEO Andy Luong says the group’s performance continues to be underscored by the acceleration of demand for semiconductors worldwide. “While the Covid-19 pandemic has given rise to challenging market conditions, it has fuelled increasing consumption of chips across a wide range of markets and applications, opening up significant growth opportunities for us as global fabs continue to boost their production capacities and expansion plans,” he says.
Shares in UMS closed 1 cent or 0.74% higher at $1.36 on May 10.
