UOB Kay Hian Private Limited
Date of Report: Wednesday, 16 July 2025
Singapore Market Outlook: UMS Integration, SATS, and Hong Fok Corp Shine Amid Global Shifts
Market Overview: Mixed Global Sentiment, Singapore Indices Advance
US stocks closed mixed, reflecting sectoral divergences: information technology led gains, but materials, healthcare, and financials weighed on major indices. The Dow Jones dropped 0.98%, S&P 500 slipped 0.40%, while the NASDAQ inched up 0.18%. In Singapore, the FSSTI Index rose by 10.61 points to 4,119.82, supported by broad-based gains with 370 gainers and 163 losers. Active counters included Frencken (+2.2%), DBS (-0.4%), Keppel (+1.7%), Singtel (-0.5%), and IFAST (+1.0%). The FTSE ST Mid Cap and Small Cap Indices each climbed by 0.7%, with market turnover at S\$1.36 billion.
Key Indices: Performance Snapshot
| Index |
Prev Close |
1M % |
YTD % |
| DJIA |
44,023.3 |
4.3 |
3.5 |
| S&P 500 |
6,243.8 |
4.5 |
6.2 |
| FTSE 100 |
8,938.3 |
0.7 |
9.4 |
| AS30 |
8,875.3 |
1.1 |
5.4 |
| CSI 300 |
4,019.1 |
3.7 |
2.1 |
| FSSTI |
4,119.8 |
5.4 |
8.8 |
| HSCEI |
8,877.1 |
1.7 |
21.8 |
| HSI |
24,590.1 |
2.2 |
22.6 |
| JCI |
7,140.5 |
0.3 |
0.9 |
| KLCI |
1,525.4 |
0.4 |
(7.1) |
| KOSPI |
3,215.3 |
9.1 |
34.0 |
| Nikkei 225 |
39,678.0 |
3.6 |
(0.5) |
| SET |
1,161.0 |
4.2 |
(17.1) |
| TWSE |
22,835.9 |
3.6 |
(0.9) |
| BDI |
1,783 |
(9.4) |
78.8 |
| CPO (RM/mt) |
4,155 |
6.2 |
(15.5) |
| Brent Crude (US\$/bbl) |
69 |
(7.4) |
(7.9) |
Top Trading Turnover and Movers
| Company |
Price (S\$) |
Chg (%) |
5-day ADT (S\$m) |
| DBS Group Holdings |
46.09 |
(0.4) |
183.4 |
| Singapore Telecommunications |
4.03 |
(0.5) |
108.0 |
| United Overseas Bank |
36.77 |
(0.3) |
99.8 |
| Oversea-Chinese Banking Corp |
17.00 |
0.0 |
92.0 |
| Yangzijiang Shipbuilding |
2.36 |
2.6 |
56.0 |
Top Gainers:
- Nio Inc-Class A: S\$4.32 (+4.9%)
- BRC Asia: S\$3.47 (+4.2%)
- Jardine Matheson Holdings: S\$51.45 (+3.9%)
- SATS: S\$3.24 (+3.8%)
- Seatrium: S\$2.18 (+2.8%)
Top Losers:
- Raffles Medical Group: S\$1.01 (–1.9%)
- Yanlord Land Group: S\$0.58 (–1.7%)
- UOL Group: S\$6.75 (–1.3%)
- Pacific Century Region Devel: S\$0.42 (–1.2%)
- Olam Group: S\$1.01 (–1.0%)
Company Focus: UMS Integration (UMSH SP)
Strong Earnings Outlook and Dual-Listing Catalysts
UMS Integration is poised for a robust period of growth, with several positive catalysts on the horizon:
- Revenue Growth: UMS expects to achieve double-digit revenue growth for 2Q25, driven by healthy and stable orders from both new and existing key customers. Resolution of prior supply disruptions positions UMS to meet its 2Q25 earnings estimate of S\$11 million, marking a 12% year-on-year and quarter-on-quarter increase.
- Manufacturing Strength: UMS’s ability to complete most manufacturing processes in-house (plating, anodising, brazing, welding, chemical cleaning, etc.) supports healthy margins and prompt deliveries.
- Dual Listing on Bursa Malaysia: Scheduled for 1 August 2025, the dual listing is attracting strong investor interest. UMS aims to close its roughly 25% valuation gap with Malaysian peers (currently trading at 18x 2026F PE versus peers at 25x). The company’s 4% dividend yield and quarterly payments are also more attractive than most Malaysian competitors. Institutional Malaysian funds are expected to increase participation, supported by enhanced liquidity from market makers.
- Increased Market Engagement: UMS is intensifying its presence in the Malaysian investment community through roadshows, plant visits, retail seminars, media coverage, and social media engagements.
Financial Summary: UMS Integration Key Figures
| Year to 31 Dec (S\$m) |
2023 |
2024 |
2025F |
2026F |
2027F |
| Net turnover |
300 |
242 |
267 |
296 |
329 |
| EBITDA |
87 |
65 |
80 |
90 |
99 |
| Operating profit |
69 |
46 |
54 |
60 |
68 |
| Net profit (reported/actual) |
60 |
41 |
47 |
54 |
61 |
| EPS (S\$ cent) |
8.5 |
5.8 |
6.7 |
7.5 |
8.6 |
| PE (x) |
16.4 |
24.1 |
20.9 |
18.5 |
16.2 |
| P/B (x) |
2.7 |
2.4 |
2.3 |
2.2 |
2.1 |
| EV/EBITDA (x) |
10.8 |
14.4 |
11.7 |
10.5 |
9.4 |
| Dividend yield (%) |
4.0 |
3.7 |
3.6 |
3.6 |
3.6 |
| Net margin (%) |
20.1 |
16.9 |
17.7 |
18.1 |
18.5 |
| Net debt/(cash) to equity (%) |
(12.5) |
(18.9) |
(17.4) |
(19.0) |
(22.3) |
| ROE (%) |
17.2 |
10.5 |
11.2 |
12.2 |
13.2 |
Valuation and Peer Comparison
UMS Integration is rated a BUY with a target price of S\$1.73, representing a 31% upgrade and based on a higher 23x 2026F PE multiple, reflecting a valuation re-rating due to the dual-listing and enhanced earnings quality. This multiple is at an 8% discount compared to Malaysian peers. UMS stands out for its superior dividend yield and net margin.
| Company |
Ticker |
Price (lcy) |
Market Cap (US\$m) |
PE 2025 |
PE 2026 |
P/B 2025 |
P/B 2026 |
EV/EBITDA 2025 |
EV/EBITDA 2026 |
ROE 2025 (%) |
Yield 2025 (%) |
| AEM |
AEM SP |
1.52 |
372 |
20.6 |
18.9 |
0.9 |
0.9 |
11.1 |
10.6 |
4.6 |
1.2 |
| Venture |
VMS SP |
12.2 |
2,740 |
15.5 |
15.0 |
1.2 |
1.2 |
8.4 |
8.1 |
7.8 |
6.1 |
| Frencken |
FRKN SP |
1.39 |
464 |
14.9 |
14.1 |
1.3 |
1.2 |
7.4 |
6.9 |
8.9 |
2.0 |
| UMS |
UMSH SP |
1.39 |
771 |
20.9 |
18.5 |
2.3 |
2.2 |
11.7 |
10.5 |
11.2 |
3.6 |
Stock Catalysts for UMS Integration
- Higher-than-expected factory utilisation rates
- Resumption of orders for aircraft components benefitting subsidiary JEP Holdings
- Improved cost management
Technical Analysis: SATS (SATS SP)
SATS demonstrated strong technical momentum, breaking above its recent price high and signaling increased upward momentum. Both conversion and base lines are trending higher, with a bullish and rising MACD.
- Trading Buy Range: S\$3.15–3.16
- Last Price: S\$3.24
- Target Price: S\$3.64
- Protective Stop: S\$3.07
- Timeframe: 1–2 weeks (if entry price is hit within three trading days)
- Institutional Target: Fundamental BUY, target price S\$3.22
Technical Analysis: Hong Fok Corp (HFC SP)
Hong Fok Corp’s price rebounded from robust cloud support, maintaining a strong uptrend. Conversion and base lines are in a bullish crossover, and the MACD remains strong and bullish.
- Trading Buy Range: S\$0.785–0.790
- Last Price: S\$0.805
- Target Price: S\$0.875
- Protective Stop: S\$0.765
- Timeframe: 1–2 weeks (if entry price is hit within three trading days)
Industry Trends: Semiconductor and Aviation Sectors
Semiconductors: Global fab equipment spending for front-end facilities is projected to rise by 2% year-on-year to US\$110 billion in 2025, marking six consecutive years of growth. Spending is expected to surge another 18% in the following year to US\$130 billion, fueled by high-performance computing (HPC), memory demand, data center expansion, and increasing AI integration. Around 50 new fabs are set to come online over these two years.
Aviation: The aviation industry continues to benefit from a global surge in air travel. The International Air Transport Association (IATA) forecasts that air travelers will surpass 5 billion worldwide in 2025, with industry revenues exceeding US\$1 trillion for the first time. However, the introduction of sweeping US tariffs could potentially dampen the sector’s robust recovery, as slower economic growth may reduce demand for both passenger and freight air transport.
Conclusion: Resilient Market with Targeted Opportunities
The Singapore market remains resilient, with key recommendations on UMS Integration, SATS, and Hong Fok Corp offering investors tactical opportunities. UMS Integration’s dual-listing and manufacturing strengths distinguish it among regional peers, while SATS and Hong Fok Corp exhibit strong technical momentum. Investors are advised to monitor sectoral trends and company-specific catalysts for further upside potential.
Prepared by UOB Kay Hian Private Limited. For informational purposes only. Please consult a financial advisor for personalized advice.
