UMS Integration reports stronger 2Q25 net profit

The Star

a day ago

PETALING JAYA: UMS Integration Ltd, which completed its secondary listing on Bursa Malaysia this month, reported a stronger net profit in the second quarter ended June 30, 2025 (2QFY25) on increased semiconductor segment sales.
In a filing with Bursa Malaysia, the Singapore-listed company said its second–quarter net profit rose 10.1% year-on-year (y-o-y) to S$10.26mil, while revenue rose 20.4% y-o-y to S$67.35mil.
On a year-on-year basis, the stronger sales was driven by a 27% increase in its semiconductor segment which was offset by a 14% decline in aerospace sales and a 7% dip in revenue in the "others" segment.
The lower aerospace revenue was mainly due to a delivery push-out by one of its customers, while the softer performance of the others segment was caused mainly by the weaker material and tooling distribution business.
Semiconductor integrated system sales leapt 36% y-o-y from S$20.8mil in 2QFY24 to S$28.2mil in 2QFY25.
Component sales also climbed 20% y-o-y from S$25.5mil to S$30.6mil during the same period.
Meanwhile, compared to 1QFY25, both the semiconductor and the others segments rose 21% and 9% respectively, while the aerospace business fell 13%.
Geographically, UMS' key markets delivered a mixed performance in 2QFY25. Malaysia, Singapore and Taiwan posted sales increases while the US and others posted lower sales.
Malaysia's 270% sales surge came from the stronger order flow from the group's new major customer while Singapore's sales climbed 15% as compared to 2QFY24 on the back of higher overall semiconductor sales.
Taiwan revenue improved 3% from more component spare sales.
Lower aerospace component sales caused US revenue to decline by 9%. Sales in the others market also fell 12% mainly due to weaker material/tooling distribution business.
Cumulatively, for the first half of the financial year 2025 (1HFY25), UMS' net profit improved by 5.1% y-o-y to S$20.09mil. Revenue for the six months increased by 13.7% y-o-y to S$125mil.
Semiconductor sales rose 17% y-o-y to S$107.4mil in 1HFY25 while Aerospace revenue edged up 2% to S$11.5mil.
Sales in the others segment dipped 9% to S$6mil.
Semiconductor integrated system sales increased 14% y-o-y to S$47.9mil in 1HFY25.
Revenue from component sales surged 20% to S$59.5mil.
Revenue from Singapore rose 5% to S$78.7mil in 1HFY25, while Malaysia sales soared 250% to S$17.4mil during the same period.
In a statement, UMS expects to be a key beneficiary of the global chip sector rebound as well as the rising shift of global semiconductor supply chains to the region, especially Malaysia and Singapore, where its two key customers have committed major expansion plans.
Both its key customers have announced robust earnings guidance for the coming months.
UMS said it is also well-placed to capitalise on the ongoing aviation boom as air travel accelerates worldwide.
UMS chief executive officer Andy Luong said the group's recent successful secondary listing in Bursa Malaysia has also helped unlock value for shareholders.
The group's market capitalisation has grown almost 50% since the beginning of this year, to hit above S$1bil.
'While market uncertainties persist, our growth strategy remains intact,' stated Luong.