Broker Name: CGS International Securities
Date of Report: May 12, 2026

Excerpt from CGS International Securities report.

Report Summary

• Stock: UMS Integration Ltd (UMSH SP)
• Action: ADD (Buy)
• Target Price: S\$4.17 (raised from S\$2.23)
• Current Price: S\$2.36
• Upside: 76.7%
• Key Idea: UMS Integration Ltd’s earnings for FY27-28F may be underestimated, with robust growth driven by strong demand from AI-related semiconductor equipment, a new major customer (customer L), and expansion into advanced packaging equipment.
• Highlights:
  • 1Q26 results were in line with expectations; revenue grew 20.4% yoy, net profit up 42.5% yoy.
  • Management is positive on outlook for FY26-28F, citing strong order flow from customer L and increasing semiconductor capital expenditure industry-wide.
  • UMS is constructing a new, fully automated Penang plant to support customer L, with capex of ~S\$100m, and expects this investment to strengthen long-term revenue potential.
  • Forecasts for FY27-28F have been raised (EPS up 6.5-13.9%) and the valuation multiple increased to 37x FY28F P/E given industry upcycle and stronger profit potential.
  • Potential catalysts: acceleration in Penang plant orders and return of aircraft component demand; downside risks include major customer sales loss in China or slower progress with new customer.

Ticker: UMSH SP

above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website : https://www.cgs-cimb.com/