Broker: CGS International
Date of Report: August 21, 2025
UMS Integration Ltd: Secondary Listing, Robust Growth Prospects, and Peer Comparison in the Semiconductor Sector
Introduction: UMS Integration Ltd’s Strategic Expansion and Outlook
UMS Integration Ltd (UMS), a precision engineering powerhouse in the semiconductor and aerospace industries, has taken a significant step by announcing its secondary listing on Bursa Malaysia, effective August 1, 2025, at RM5.00 per share. This strategic move targets broader investor reach, improved share liquidity, and valuation uplift, especially as Malaysia’s market offers a more attractive landscape for semiconductor-related players.
On its debut, UMS closed at RM5.50 on Bursa, reflecting an 8.5% premium over its SGX price. From August 1–20, the Bursa premium averaged 5.5%, with a traded volume of 474,554 shares, compared to 8.5 million on SGX. The company reported strong 1H25 financials, demonstrating resilience amid geopolitical tensions and trade uncertainties.
1H25 Financial Performance: Margin Expansion and Cash Strength
Revenue for 1H25 climbed 14% year-on-year to S$125 million.
Net profit rose 5% year-on-year to S$20.1 million.
Quarterly net profit increased 4.4% to S$10.3 million, with revenue up 16.8% quarter-on-quarter.
Declared a quarterly dividend per share of 1.0 Sct.
Maintained a net cash position of S$49.2 million at end-June 2025.
UMS’s management remains optimistic for FY25, citing enhanced production capabilities, new product introductions, and the new Penang facility as major growth drivers. The company is well-positioned to benefit from the global semiconductor sector rebound and the trend of shifting supply chains towards Malaysia and Singapore.
| Metric |
Dec-23A |
Dec-24A |
Dec-25F |
Dec-26F |
Dec-27F |
| Revenue (S\$m) |
299.9 |
242.1 |
253.3 |
276.7 |
302.3 |
| Net Profit (S\$m) |
59.98 |
40.61 |
45.13 |
53.49 |
64.33 |
| Core EPS (S\$) |
0.089 |
0.057 |
0.064 |
0.075 |
0.091 |
| Dividend Yield (%) |
4.15 |
3.85 |
3.70 |
3.70 |
3.70 |
| FD Core P/E (x) |
15.07 |
22.96 |
21.25 |
17.93 |
14.91 |
Company Overview: Evolution and Strategic Footprint
Founded as Norelco Centreline Holdings Limited in Singapore (2001), UMS listed on SESDAQ before moving to SGX Mainboard in 2003.
Merged with UMS Semiconductor Pte Ltd in 2004, and later rebranded as UMS Holdings Limited in 2007.
Expanded into Malaysia, the US, and diversified into aerospace and E&E sectors.
Rebranded as UMS Integration Limited in September 2024 to reflect its integrated engineering capabilities.
Today, UMS specializes in complex precision machining, sheet metal fabrication, sub-module and full module assembly, and surface treatment for semiconductor and aerospace clients. The company also owns a majority stake in SGX-listed JEP Holdings Ltd.
Products, Services & Manufacturing Excellence
UMS provides a comprehensive suite of precision engineering services:
- Precision Components Manufacturing: Sheet metal fabrication, precision machining (CNC 3/4/5-axis, EDM wire cutting, milling, turning, drilling, grinding), surface treatments (electroplating, anodizing), and sub-module assembly.
- Integrated Systems: Assembly of complex subsystems for customer end-products, with involvement in design and development phases as required.
- Other Services: Distribution of metal supplies, trading of cutting tools, and water/chemical engineering solutions (non-core, being wound down).
Production Capacity and Expansion
Main manufacturing hub: Penang, Malaysia (480,000 sq ft plant since 2013, new 300,000 sq ft plant for Lam Research completed in 2024).
Singapore plant serves as R&D and high-value engineering hub.
473 machines across Singapore and Malaysia, with utilization rates between 42-48% in Malaysia and 13-86% in Singapore.
Additional machinery installed in Malaysia to support ramp-up for new customers.
Revenue Segmentation and Profitability
| Segment |
FY24 Revenue (%) |
FY24 Pre-tax Profit (%) |
FY24 Pre-tax Profit Margin (%) |
| Semiconductor |
84 |
21 |
21 |
| Aerospace |
11 |
10 |
10 |
| Others |
5 |
8 |
8 |
Major Customers and Competitive Landscape
Key Customer: Applied Materials Inc (AMAT), contributing 66.4–74.9% of revenue FY21–FY24.
New Customer: Lam Research Inc (LRCX), added S$10.8m or 4.5% of FY24 revenue. Order volume expected to grow as production ramps up in Malaysia.
Competitors in Malaysia: SAM Engineering & Equipment, Frencken Mechatronics, Coraza Integrated Technology, CPE Technology, Kobay Technology, UWC Berhad, Northeast Group, SFP Tech Holdings.
Regional/International Competitors: Foxsemicon Integrated Tech Inc (Taiwan), Benchmark Electronic Inc (US).
Global Semiconductor Industry Trends
2Q25 global semiconductor sales: US$179.7bn (up 7.8% qoq).
June 2025 sales: US$59.9bn (up 19.6% yoy).
SIA expects continued growth in 2H25, driven by Asia Pacific and Americas.
WSTS forecasts 2025 global semiconductor sales at US$728bn (+15.4% yoy), rising to US$800bn in 2026 (+9.9% yoy).
Deloitte projects the industry could reach US$1tr by CY30, requiring a sustained CAGR of 7.5%.
Wafer Fab Equipment (WFE) Outlook
SEMI estimates 2025 WFE sales at US$110.8bn (+6.2%), rising to US$122.1bn in 2026 (+10.2%), boosted by foundry and memory applications and AI-driven expansions.
Risk Factors Affecting UMS
- Customer Concentration: Heavy reliance on Applied Materials, but diversification underway with new customer onboarding.
- Raw Material Costs: Aluminium (24.9%) and steel (12.7%) are key exposures. Price spikes could squeeze margins if not passed on to customers.
- FX Risks: Sales in US dollars, costs in ringgit, reporting in SGD. No hedging policy, so significant currency swings impact performance.
- Labour Market: Availability and retention of skilled technicians and engineers are critical for operational efficiency and margin protection.
Financial Analysis: Growth Trajectory and Margin Trends
UMS posted its highest-ever revenue in FY22 (S$372.39m) after Covid-19, then saw a decline as semiconductor demand slowed and inventories rose.
EBITDA margin averaged 24% from 1998–2024, but has trended lower (FY21–24) due to macro pressures and wage inflation.
| Year |
Net Profit (S\$m) |
EBITDA Margin (%) |
Effective Tax Rate (%) |
| FY21 |
57.6 |
34 |
27.5 |
| FY22 |
102.0 |
32 |
1.2 |
| FY23 |
61.2 |
29 |
10.7 |
| FY24 |
41.6 |
27 |
11.1 |
Peer Comparison: Valuations and Growth Prospects
| Company |
Ticker |
Reco. |
Price (local) |
Target Price (local) |
Market Cap (US\$m) |
CY25F P/E (x) |
CY26F P/E (x) |
3-yr EPS CAGR (%) |
P/BV (x) |
ROE (%) |
Div Yield (%) |
| UMS Integration Ltd |
UMSH SP |
Add |
1.35 |
1.87 |
747 |
21.3 |
17.9 |
16.3 |
2.24 |
10.3 |
3.7 |
| Frencken Group Ltd |
FRKN SP |
Add |
1.40 |
2.06 |
466 |
14.1 |
13.4 |
10.3 |
1.28 |
9.1 |
2.1 |
| Genetec Technology Bhd |
GENE MK |
Reduce |
0.57 |
0.81 |
105 |
10.4 |
8.1 |
na |
0.80 |
7.7 |
1.4 |
| Inari-Amertron Bhd |
INRI MK |
Reduce |
1.94 |
1.50 |
1,739 |
29.0 |
26.2 |
na |
2.62 |
8.8 |
3.4 |
| Malaysian Pacific Industries |
MPI MK |
Reduce |
22.92 |
14.90 |
1,081 |
35.2 |
28.9 |
na |
2.19 |
6.2 |
1.3 |
| Mi Technovation |
MI MK |
Add |
2.22 |
2.20 |
468 |
23.8 |
20.1 |
22.2 |
1.86 |
7.8 |
2.1 |
| Pentamaster Corp Bhd |
PENT MK |
Hold |
3.60 |
2.70 |
606 |
35.2 |
30.3 |
18.5 |
3.18 |
9.2 |
0.6 |
| SAM Engineering & Equipment |
SEQB MK |
Reduce |
4.19 |
2.89 |
671 |
28.6 |
24.1 |
13.6 |
1.91 |
6.7 |
0.7 |
| Uchi Technologies |
UCHI MK |
Hold |
3.26 |
3.21 |
357 |
15.1 |
14.2 |
-1.4 |
7.29 |
48.9 |
6.3 |
| Unisem |
UNI MK |
Reduce |
2.49 |
1.00 |
950 |
55.2 |
39.4 |
32.9 |
1.80 |
3.2 |
2.4 |
| UWC BHD |
UWC MK |
NR |
2.61 |
NA |
682 |
40.7 |
27.8 |
28.9 |
5.52 |
13.7 |
0.5 |
| ViTrox Corp Bhd |
VITRO MK |
Reduce |
3.84 |
2.10 |
1,720 |
61.1 |
47.8 |
24.3 |
6.79 |
11.2 |
2.0 |
Secondary Listing Details and Strategic Rationale
UMS’s secondary listing on Bursa Securities provides full fungibility between Singapore and Malaysia registers, allowing flexible trading and investor access. The transfer process takes at least 12 market days from Singapore to Malaysia and 8 market days from Malaysia to Singapore. UMS sees Malaysia as a larger market with superior valuation potential due to more semicon-related manufacturing peers.
Corporate Governance and Management Team
Key members include:
- Datuk Phang Ah Tong (Chairman and Lead Independent Director): Over 36 years in Malaysia’s civil sector, former Deputy Chief Executive of MIDA.
- Andy Luong (CEO): Group founder, with over 20 years of manufacturing experience, previously COO.
- Stanley Loh (Executive Director/Group Financial Controller): 20+ years in finance and operations.
- Chua Siong Kiat (Independent Director): Nearly 30 years international financial experience.
- Datin Poon Lee Fah (Independent Director): Legal specialist, active in community initiatives.
- Xie Xingbei, Pearlyn (Independent Director): M&A and capital markets specialist.
- Gobinath Gunaselan (Operations Director): Resigning September 2025, 31 years industry experience.
ESG and Sustainability Initiatives
Member of Responsible Business Alliance.
843 employees at end-2024; guided by Singapore’s Tripartite Alliance for Fair Employment.
No discrimination or exploitative practices reported in 2024.
Active in energy conservation: Target energy intensity <0.00047 gigajoules/revenue (achieved 0.00058 in 2024).
Solar panel installations, LED lighting, timed air conditioners, and equipment upgrades underway.
Investment Case, Valuation, and Recommendation
UMS is rated “Add,” with a target price of S$1.87, representing a 38.5% upside from S$1.35. This valuation is based on 20.8x FY27F P/E, justified by forecasted net profit growth of 11.1–19.4% through FY25F–27F and supported by a 3.7% dividend yield. The Bursa listing boosts visibility and peer comparison, but the fundamental case rests on earnings momentum, new customer orders, and recovery in aerospace.
Conclusion: Outlook and Key Catalysts
UMS Integration Ltd stands at the forefront of Southeast Asia’s semiconductor supply chain transformation. With a strong financial profile, progressive ESG policies, and dynamic management, UMS is well-positioned for robust growth. Key catalysts include securing more customers, ramping up Penang production, and a cyclical recovery in aerospace component orders. Risks to monitor include customer concentration, raw material price volatility, FX swings, and skilled labor shortages.
For investors and analysts seeking exposure to Asia’s semiconductor manufacturing renaissance, UMS Integration Ltd offers an attractive blend of growth, resilience, and strategic positioning within a competitive peer landscape.
