UMS Integration up 14.4% after posting ‘strong’ double-digit sales growth in Q1

[SINGAPORE] UMS Integration on Monday (May 11) posted a 43 per cent surge in earnings to S$14 million for its first quarter ended Mar 31, from S$9.8 million in the previous corresponding period.As at 9.33 am on Tuesday, the counter rose as much as 14.4 per cent or S$0.34 to S$2.70, with 10.6 million shares changing hands. By 10.11 am it had eased to S$2.57, still up 8.9 per cent or S$0.21, with 15.1 million shares traded.The precision engineering group recorded earnings per share of S$0.0163 for the three months, compared with S$0.0138 in Q1 2025.In tandem with the improvements, revenue grew 20 per cent on the year to S$69.4 million from S$57.7 million.The group declared a tax-exempt cash dividend of S$0.01 per ordinary share, unchanged from the year-ago period, which will be paid on Jul 24.It said that the robust performance was driven by better performances across all core business segments, which recorded “strong double-digit sales growth”.Navigate Asia ina new global orderGet the insights delivered to your inbox.UMS Integration CEO Andy Luong said: “We benefited from artificial intelligence-driven increases in demand for deposition, etch and advanced packaging tools across memory, foundry chipmakers as well as the continued resilience in global aviation.”Higher sales and a foreign exchange gain of S$1.5 million, versus a loss of over S$1.1 million in Q1 2025, lifted the group’s profitability in the quarter, though this was partly offset by lower gains on the disposal of fixed assets of around S$600,000.The semiconductor business grew 21 per cent amid a sales surge. This was boosted by higher revenues from semiconductor component sales, which jumped 26 per cent on the year to S$36.5 million amid higher new customer demand, and from semiconductor integrated system sales, which grew 14 per cent to S$22.4 million during the same period.SEE ALSOUMS buys out aluminium alloy products supplierThe aerospace business’ revenue grew 18 per cent to S$7.3 million for the quarter, lifted by robust global aviation demand, while the others segment rose 10 per cent, due to recovery of its material distribution business.UMS Integration said that all key markets geographically reported higher revenue in Q1, with strong double digit growth, except for the US market, which recorded a 12 per cent decline in sales amid lower semiconductor and aerospace component shipments.The mainboard-listed group said that its financial position remained healthy as at end March 2026, with net cash of S$26 million.The group expects its integrated systems demand to increase as existing key customers’ outlook stays strong amid higher semiconductor capital spend from 2026 through 2028, “as chipmakers keep putting money into advanced-node capacity to build more complex processors”.The aerospace business is also expected to “persist with its strong efforts in driving earnings growth” as the global aerospace industry is “poised for continued expansion, driven by factors like increasing air travel demand and advancements in technology”, said the group.The group remains optimistic and expects to achieve better performance in FY2026, barring unforeseen circumstances.Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.