UMS Integration Limited 1H 2025 Results: Revenue Up 14% YoY, Declares 1.0 Cent Interim Dividend, Semiconductor Growth Leads Performance 3 4 26 31

UMS Integration Limited: 2Q & 1H2025 Financial Performance and Outlook

UMS Integration Limited, a leading provider in the semiconductor and precision engineering space, reported robust results for the second quarter and first half of 2025. The Group continues to benefit from the global recovery in semiconductor demand, strategic investments in capacity, and a strong order flow from key customers, particularly in Malaysia and Singapore. Below, we analyze the key financial metrics, performance trends, dividend announcements, and the outlook as detailed in the company’s latest unaudited interim report for the period ended 30 June 2025.

Key Financial Metrics at a Glance

Metric	2Q2025	1Q2025	2Q2024	YoY Change	QoQ Change
Revenue (S\$’000)	67,347	57,654	55,953	+20%	+16.6%
Net Profit (S\$’000)	10,454	10,147	9,457	+11%	+2.9%
EPS (cents)	1.44	1.39	1.31	+10%	+3.6%
Interim Dividend (cents per share)	1.0 (proposed)	–	1.0	Unchanged	N/A

Segment and Geographical Performance

Semiconductor Segment: 2Q2025 sales surged 27% YoY, driven by a 36% jump in Integrated System sales and a 20% rise in Component sales. This segment remains the Group’s core growth engine.
Aerospace Segment: Revenue declined 14% YoY due to delivery push-out by a key customer.
Others Segment: Revenue fell by 7% YoY, mainly from weaker material and tooling distribution business.
Geographical Trends: Malaysia outperformed with a 270% YoY increase, attributed to new major customer orders. Singapore sales grew 15% YoY. The USA and Others markets declined due to softer aerospace and distribution sales.

Historical Performance and Trends

1H2025 revenue rose 14% YoY to S\$125.0 million (from S\$109.9 million in 1H2024).
Net profit for 1H2025 was S\$20.6 million, up 6% YoY.
Gross material margin improved to 55.1% in 1H2025 (from 53.3% in 1H2024), reflecting a favorable product mix.
Net asset value per share also increased to 59.54 cents as at 30 June 2025 (from 58.88 cents at 31 Dec 2024).

Dividends

Interim Dividend: The Board proposed an interim dividend of 1.0 cent per share, same as the prior year. The payment date is set for 28 October 2025, with a record date of 13 October 2025. Shareholders registered in Malaysia will receive the equivalent in MYR at an exchange rate of SGD 1 = MYR 3.29.

Exceptional Items and Notable Expenses

A foreign exchange loss of S\$2.8 million was recognized in 2Q2025, versus a small gain in 2Q2024, due to currency volatility.
Personnel costs increased 16% YoY in 2Q2025, reflecting higher overtime and bonus provisions.
Depreciation expense rose 33% YoY due to new machinery investments.
Other expenses (legal, professional, and upkeep costs) fell 9% YoY in 2Q2025, contributing positively to the bottom line.

Related Party Transactions

Consultancy services and commission paid to Sure Achieve Consultant Pte Ltd (a company related to the CEO’s family) totaled S\$889,000 in 1H2025. This represented about 0.25% of the Group’s net tangible assets as at 31 Dec 2024.

Corporate Actions and Fundraising

The company completed a secondary listing on Bursa Malaysia in early 2025, which significantly increased its market capitalization and unlocked shareholder value.
As of 30 June 2025, S\$9.98 million of the net proceeds from a S\$49.9 million share placement in January 2024 remains earmarked for future investments and business development.

Cash Flow and Balance Sheet Highlights

Cash and cash equivalents decreased from S\$79.9 million (31 Dec 2024) to S\$59.1 million (30 June 2025), mainly due to investments in property, plant & equipment (S\$22.9 million in 1H2025) and dividend payments (S\$14.2 million), partially offset by operating cash flows.
Net cash generated from operating activities was S\$15.2 million in 1H2025 (up from S\$14.3 million in 1H2024).
Free cash flow turned negative due to elevated capex for Penang facility expansion.
Net asset value per share continued to rise, reflecting the Group’s growing capital base and retained earnings.

Outlook and Industry Commentary

“Group revenue and profits continued to strengthen, riding on the tailwinds of the robust recovery of the global semiconductor industry… The Group did better in the second quarter compared to the first quarter of FY2025 despite unprecedented challenges brought about by US trade tariffs and intensifying geopolitical tensions. The Group posted double-digit gains in both its topline and bottom line for the half-year and second-quarter performances… The solid performance reflects the Group’s resilience and strategic focus on delivering high-quality and high-value products to support the increasingly complex demands of key customers in developing advanced semiconductors. With its deep commitment to invest in strengthening its production capabilities and facilities, the Group has secured several new product introductions (NPI) – particularly from its new key customer in Malaysia. Sales in Malaysia grew more than two-fold during the period under review. The Group’s prospects for the coming months remain bright.”

The tone is distinctly positive, underlining resilience, strategic investments, and continued growth prospects despite macroeconomic and geopolitical headwinds.

Industry forecasts (SEMI) suggest global semiconductor equipment sales will hit new highs in 2025 and 2026, powered by AI, advanced logic, and memory expansion. Malaysia and Singapore, where UMS has expanded, are key beneficiaries of this trend.
The Group is also positioned to benefit from the global aviation recovery, with IATA forecasting record revenues for the airline industry in 2025.

Conclusion and Investment Recommendations

Overall Assessment: UMS Integration Limited’s financial results are strong and forward-looking statements are positive. The Group’s core semiconductor business is delivering robust growth, supported by new investments and customer wins. Despite higher expenses and FX losses, margins and profits are expanding, and the balance sheet remains healthy, even as capex remains elevated. The proposed interim dividend reflects continued commitment to shareholder returns.

If you currently hold UMS shares: The outlook remains bright, supported by industry tailwinds and strong operational performance. Investors may consider holding their position to benefit from further upside, especially as new capacity comes online and global chip demand rises. However, monitor for any signs of global semiconductor demand weakness or further FX volatility.
If you do not currently own UMS shares: The company’s strong fundamentals, growth prospects, and attractive shareholder returns could make it an appealing candidate for inclusion in a growth-oriented portfolio, particularly for those seeking exposure to the semiconductor equipment supply chain in Asia.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell securities. Please conduct your own research and consult with a qualified financial advisor before making investment decisions.