Latest news with #UMSIntegration
Business Times
4 days ago
- Business
- Business Times
UMS Integration expects to reap fruits of S$120 million investment in next few years
[SINGAPORE] UMS Integration expects to see in the next few years the fruits of the S$120 million investment it made over the past three years, as it rides the semiconductor boom. Having made the capital expenditure, the Singapore-listed company, that had a secondary listing recently on Bursa Malaysia , might be able to reward shareholders with more dividends if it continues to generate healthy cash flows. UMS is primarily focused on the semiconductor industry. It manufactures high-precision, front-end components and performs complex electromechanical assembly and final testing services for customers that make the machines to produce wafers. It has production facilities in Singapore, Malaysia and California, with Singapore focused on high-end engineering and Malaysia on high-volume manufacturing. Andy Luong, UMS Integration controlling shareholder and chief executive, said the internally funded investment on a new plant and machinery – to buy new units and upgrade older ones – is beginning to bring in new revenue. An American semiconductor player became UMS Integration's second chip customer, and is being served by the manufacturer's new plant in Penang after the customer expanded to Malaysia. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up UMS Integration's headquarters in Singapore. PHOTO: YEN MENG JIIN, BT Bold move By planning five years ahead, UMS Integration was well-positioned to ride on an industry upturn and stay ahead of the competition, pointed out Luong, an American citizen with Singapore permanent residency. Its bold investment, made even before it landed orders, prompted a machine vendor – from which UMS had bought several units costing 1.4 million euros (S$2.1 million) each – to ask if the Singapore group would secure adequate deals to support the use of these machines. 'I said 'If you have the machines, the work will come. If you don't have the machines, the work won't come',' recounted Luong. 'Based on my 35 years in this industry, I understand (the ways things work), and also have done enough research to be proactive. 'You basically (have to) be prepared, and the customer will come to you. Customers will work with a supplier that is willing to invest, and we are one of (those) that are willing to invest in automation and in high-end machinery.' The proactiveness paid off when a customer recently asked Luong if UMS Integration has the capacity for more orders. 'The customer WhatsApped me every other hour; they desperately wanted me to expand capacity. When I said I have the machine, I have purchased it, the customer responded: 'Wow, that's wonderful!'' Three months ago, they might not have known there would be such demand, he added. The unexpected orders were likely fuelled by the reversal of the US ban on selling chips to China. Had UMS Integration not purchased the machines well ahead of demand, and ordered a unit today, the company would have had to wait for 1.5 years for it to be delivered. Similarly, it would have taken 2.5 years for a plant to be built. It is not like going to furniture retailer Ikea and just picking something up, quipped Leong. UMS, which is primarily focused on the semiconductor industry, has production facilities in Singapore, Malaysia and California. PHOTO: YEN MENG JIIN, BT Eyeing more growth Currently, UMS Integration still has room to ramp up capacity. In 2024, it bought a 235,000 square feet, 60-year leasehold industrial plot next to its factory in Penang, Malaysia, for RM15.2 million (S$4.6 million). It will possibly serve the company's next big customer. However, should the leading Dutch semiconductor equipment maker ASML set up a plant in Malaysia, as per some media reports, UMS Integration is aiming to add it to its blue-chip clientele. This is one of its ways to address customer concentration risks, as its top customer has contributed as high as 74.9 per cent to its revenue in recent years. Other ways by which it has diversified include its acquisition of JEP Holdings before the pandemic hit, and providing precision-machining and engineering services to a different market – the aerospace industry. The demand for artificial intelligence and 3D semiconductors, meanwhile, is expected to unleash a rush of orders for components in the next two to three years, which bodes well for UMS Integration's future. Given that it has already made the necessary investment, the group might now be in the position to up the reward to shareholders, observed Luong. As it has no borrowings, the revenue it generates would not go to service debt. 'Because I have already invested S$120 million, I now have more money in the bank account, so I can (pay out) more (as) dividend. That is, provided we will generate a lot more cash in the next few years.' UMS Integration distributes dividends every quarter, with no fixed payout ratio. It distributed S$0.01 per share for the first quarter of the 2025 financial year ended March, lower than the S$0.012 for the corresponding quarter of FY2024. Net profit was flattish at S$9.8 million for Q1 FY2025, while revenue rose marginally by 7 per cent year on year to S$57.7 million. The semiconductor business accounted for 84.3 per cent of the revenue, while the aerospace segment contributed 10.7 per cent. It is a net cash company, with S$81.9 million in cash against S$67.2 million in total liabilities – the bulk of which were trade payables – as at end-March. The share price of UMS Integration has risen 50 per cent in the year to date, closing at S$1.53 on Friday (Aug 1), while its market value reached nearly S$1.1 billion. Luong notes: 'Customers will work with a supplier that is willing to invest, and we are one of (those) that are willing to invest in automation and in high-end machinery.' PHOTO: YEN MENG JIIN, BT UMS Integration has fortunately been spared from the turbulence surrounding the US' tariffs on its trading partners. This is because the company serves local customers. It trucks the bulk of its products from its Malaysia and Singapore plants to its top customer located across from its headquarters in Changi, while its Penang plant ships its products directly to the other key customer in Malaysia. For the very small percentage of products it ships to the US on behalf of customers, freight charge and tariff are borne by the latter. Although UMS Integration has dodged the tariff bullet, it has not been spared the impact of inflation and the shortage of skilled manpower – just as other companies. As part of its efforts to counter these, it will increase the adoption of automation and robotics so that its operations would not need to be manned by workers. UMS Integration also envisages leveraging technology to control production remotely by smartphone. This would allow it to halt ongoing production and work on another batch if a customer suddenly asks for it, for instance. To entrench itself further in its customers' business as well as to help them tackle manpower and cost issues, UMS Integration wants to integrate more into their production processes. That is, it wants to become their extended factory for low-volume manufacturing and complex assembly. It will also focus on more high-quality, high-value products in a bid to further raise entry barriers to fend off rivals emerging from India and Vietnam. Luong expects such efforts and its forward-looking practice to help UMS Integration achieve its targets of S$500 million in revenue in five to eight years' time and maintaining its double-digit net profit margin. On succession plans, the 65-year-old said he has identified a possible candidate as deputy CEO to take over some of his responsibilities in the next few years, but that he intends to continue to be involved in UMS Integration as executive chairman till he retires at 75.
Straits Times
5 days ago
- Health
- Straits Times
Can ‘reparenting' yourself make you happier?
The concept of reparenting, centred around healing your "inner child", is catchy. Here is what experts have to say. NEW YORK – Ms Laura Wells, 54, a fitness coach in Fort Worth, Texas, felt silly when she first tried giving herself a hug. Then, she realised, 'it really helps'. It is one of the ways she is attempting to 'reparent' herself – by meeting emotional needs she says were neglected during her childhood. The idea of reparenting has been around for decades, but the practice has flourished in recent years as interest in trauma-informed therapy has soared. It is now the subject of books, podcasts and TikTok hashtags. In reparenting, patients are empowered to find their hurt 'inner child' and help it feel loved so that they can develop a stronger sense of self and better relationships with others. It is not an easy process. 'I'm always telling people, reparenting your inner child is messy, uncomfortable and awkward,' said Ms Nicole Johnson, a licensed professional counsellor in Boise, Idaho, and the author of a new book on the topic. But when her clients acknowledge their pain and view it through the lens of their younger selves, she said, they tend to have more self-compassion and gradually drop the coping mechanisms from their childhood that are no longer helpful. Origins of the concept Reparenting originated in the 1960s, when therapist Jacqui Schiff encouraged her patients with schizophrenia to live with her and then regress back to childhood. She assumed the role of a caregiver and cradled her clients, even asking them to wear diapers and feeding them bottles . Top stories Swipe. Select. Stay informed. Singapore LTA, Singapore bus operators reviewing Malaysia's request to start services from JB at 4am Singapore Despite bag checks and warnings, young partygoers continue to vape in clubs in Singapore Singapore President Tharman meets migrant workers who saved driver of car that fell into sinkhole Singapore Now flying solo, Acres CEO Kalaivanan Balakrishnan presses ahead with wildlife rescue efforts Opinion The charm – and drawbacks – of living in a time warp in Singapore Business UMS Integration becomes first SGX company with secondary listing in Malaysia Singapore Ong Beng Seng to plead guilty on Aug 4, more than 2 years after trip to Qatar with Iswaran Business Decoupling to save on tax? You may lose right to property if ties go awry Initially, Ms Schiff was widely admired for her unconventional methods , which she claimed could 'cure' schizophrenia . Then a patient died while under her care. She was later found guilty of ethics violations and her techniques were widely criticised and condemned as an abuse of power. In the 1970s, reparenting was reimagined by psychotherapist Muriel James. She believed it should be a self-directed pursuit where patients , not the therapist, played the role of a loving parent to their inner child. This is the version of reparenting that is most accepted and practised today. Dr Jordan Bate, an associate professor of clinical psychology at Yeshiva University, said reparenting resonates with people because it offers a language for talking about how past experiences shape the way they feel now, and highlights the ways in which defence mechanisms are used to navigate pain. What is your inner child? The idea that people have an inner child dates back nearly 100 years. The concept is often credited to Swiss psychiatrist Carl Jung, who once wrote that inside every adult 'lurks a child – an eternal child, something that is always becoming, is never completed, and calls for unceasing care, attention and education'. But it can also be partly attributed to Sigmund Freud, who emphasised the lasting effects of childhood, and to the clinicians behind attachment theory, who suggested that early emotional bonds with caregivers shape who people become later on. Self-help evangelist John Bradshaw helped popularise the phrase 'inner child' in the 1990s. He argued that physical or emotional abuse or neglect during childhood can create lasting emotional wounds, leading to feelings of shame, self-blame and guilt that have become the 'major source of human misery' . Hence , adults may have difficulty forming healthy relationships, engage in self-destructive behaviour or develop a harsh inner critic. At the time, some experts viewed Bradshaw with scepticism or equated his work with pop psychology. He was even parodied in an episode of animated series The Simpsons (1989 to present). Today, therapists sometimes invoke the inner child as a conversational tool to help their patients process thoughts, experiences and feelings from childhood that they are carrying into adulthood. The inner child symbolises the parts of the self that were 'not safe to show' during childhood and the 'feelings that were not allowed to be expressed', Dr Bate said. What reparenting looks like Some reparenting strategies can be tackled independently, but Dr Bate said it is best to seek help from a therapist because exploring unmet needs from childhood can lead to grief, anger, shame and loneliness. In some cases, therapists might ask patients to imagine interacting with their younger selves and think about what that child is feeling and what they might want to hear in that moment. Or patients may write letters to their younger selves to validate the pain that they experienced in the past, and practise treating themselves with more kindness. If patients are speaking to themselves harshly or overreacting, like their parent used to do, a therapist can help them change that behaviour. Experts said to keep in mind that reparenting is a technique, not a stand-alone therapy. It is also not a simple fix, so people should not assume 'all I have to do is talk to myself in a kinder, calmer way', said Dr Erin Hambrick, a researcher and therapist focused on childhood trauma in Kansas City, Missouri. For Ms Wells, reparenting has been helpful. Before she started it a couple of years ago, she said, she was a perfectionist and a people-pleaser who equated emotions with weakness. To avoid getting hurt by others, she relied only on herself. 'There was the me that was put into place to protect me, but also kept me from opening up to anybody,' she said. 'And now there's the real me,' she added, 'that is learning how to experience life.' NYTIMES
Yahoo
5 days ago
- Business
- Yahoo
Be Wary Of UMS Integration (SGX:558) And Its Returns On Capital
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Having said that, from a first glance at UMS Integration (SGX:558) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. What Is Return On Capital Employed (ROCE)? For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for UMS Integration, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.09 = S$42m ÷ (S$520m - S$48m) (Based on the trailing twelve months to March 2025). Therefore, UMS Integration has an ROCE of 9.0%. Even though it's in line with the industry average of 9.0%, it's still a low return by itself. Check out our latest analysis for UMS Integration In the above chart we have measured UMS Integration's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for UMS Integration . What Can We Tell From UMS Integration's ROCE Trend? On the surface, the trend of ROCE at UMS Integration doesn't inspire confidence. Over the last five years, returns on capital have decreased to 9.0% from 14% five years ago. And considering revenue has dropped while employing more capital, we'd be cautious. This could mean that the business is losing its competitive advantage or market share, because while more money is being put into ventures, it's actually producing a lower return - "less bang for their buck" per se. Our Take On UMS Integration's ROCE In summary, we're somewhat concerned by UMS Integration's diminishing returns on increasing amounts of capital. The market must be rosy on the stock's future because even though the underlying trends aren't too encouraging, the stock has soared 119%. In any case, the current underlying trends don't bode well for long term performance so unless they reverse, we'd start looking elsewhere. UMS Integration does have some risks though, and we've spotted 1 warning sign for UMS Integration that you might be interested in. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
The Sun
6 days ago
- Business
- The Sun
UMS Integration moving up supply chain, expanding Penang operations
KUALA LUMPUR: UMS Integration Ltd is ramping up its push into the artificial intelligence (AI) and high‑performance computing supply chain, eyeing higher‑value precision components and expanding its Penang facilities as part of a five‑year growth roadmap following its landmark secondary listing on Bursa Malaysia today. CEO Luong Andy said the Singapore‑headquartered precision engineering specialist, which already counts two major semiconductor clients among its key customers, sees 'tremendous opportunities' in advanced packaging solutions critical for AI chips, a segment driving global capital expenditure in semiconductors. 'We are moving up the semiconductor value chain and see many opportunities, especially in AI and high‑performance computing, where we have the know‑how and capability to produce the precision components needed,' Luong told reporters after the listing ceremony. The company's shares opened at RM5.15, 3% above the reference price of RM5, and traded as high as RM5.39 in early deals, valuing UMS Integration at about RM3.7 billion. The counter, categorised under the Industrial Products and Services sector on Bursa Malaysia, closed at RM5.50 a share. Executive director Stanley Loh Meng Chong said UMS Integration is doubling down on Penang, where it operates its largest production plant, to support growing orders for advanced semiconductor equipment. The company recently acquired additional land in Penang and plans to begin construction next year, adding about 200,000 sq ft to reach 1 million sq ft in total manufacturing space within the next two to three years. 'Penang remains central to our volume manufacturing strategy. This expansion will support key customers' ramp‑up in operations, especially for advanced node manufacturing and packaging linked to AI chips,' Loh said, adding that Malaysia's accessibility and talent pool make it a preferred base for scaling production. UMS Integration's secondary listing on Bursa Malaysia was undertaken by way of introduction, meaning no new funds were raised. The company retains its primary listing on the Singapore Exchange, where it last traded at S$1.52. Luong said the dual‑listing strategy is aimed at enhancing liquidity and providing 'flexibility to tap different equity markets' for future fundraising if needed. 'This listing broadens our investor base and positions us better to access capital when opportunities arise,' he noted. For the first quarter ended March 31, 2025, UMS Integration posted S$57.7 million in revenue, up 7% year‑on‑year, with net profit edging up to S$10.1 million. The semiconductor segment contributed 84% of revenue, followed by aerospace at 11%. The group remains in a net cash position of S$81.4 million and continues its policy of quarterly dividends, paying S$0.01 per share in July. UMS Integration has historically been reliant on one major customer but is now balancing its portfolio with a second key client of comparable size. Loh said this diversification, coupled with demand from AI‑driven chipmakers, is expected to underpin growth in 2025 and beyond. 'We believe this year will be better than last, and the years to come will also benefit from the trend of higher equipment spending,' he said. While research and development remains anchored in Singapore, Loh said Malaysia will continue to absorb most of the group's manufacturing investments, with Penang serving as its volume hub for global customers. Deputy Finance Minister Lim Hui Ying, who officiated at the ceremony, hailed the cross‑border listing as a milestone for Malaysia's capital market and a signal of growing economic integration between Malaysia and Singapore. She said UMS Integration's move underscored confidence in the robustness of Bursa Malaysia's infrastructure, investor depth and governance standards, while aligning with the government's ambitions to position the country as a hub for regional and international listings. Lim highlighted Penang's pivotal role in UMS Integration's growth story, noting how the company's expansion has paralleled the state's rise as a global semiconductor and advanced manufacturing hub. 'UMS Integration's continued investment has not only enhanced Penang's manufacturing ecosystem but also created high‑value jobs and opportunities, aligned with the Penang 2030 vision to attract quality, future‑forward investment,' she said. She added that Malaysia's regulatory ecosystem is evolving to support innovation, digitalisation and sustainable finance, and expressed hope that UMS Integration's secondary listing would inspire other regional players with Malaysian ties to consider a presence on Bursa Malaysia. 'This milestone reflects our broader aspiration to connect Asean businesses with global investors, while driving high‑tech and capital‑intensive sectors critical to the region's growth,' Lim said.
The Star
7 days ago
- Business
- The Star
UMS Integration debuts on Bursa Malaysia at RM5.15, up 3%
KUALA LUMPUR: UMS Integration Ltd rose on its Main Market debut, becoming the first Singapore Exchange (SGX)-listed company to achieve a secondary listing on Bursa Malaysia. Its shares opened at RM5.15, marking a 3 per cent increase over its RM5 reference price. The listing was conducted by way of introduction, rather than via a conventional initial public offering, and did not involve any fundraising from the company or its shareholders. UMS Integration chief executive officer Andy Luong said the company intends to make further investments as part of its planning for the next five years. "UMS Integration is moving up the value chain. We see significant opportunities in artificial intelligence (AI) and high-performance computing, where we have the expertise, skills, and capabilities to produce the precision components required,' he said at a press conference held in conjunction with the listing. On its expansion plans, he said UMS Integration remains open to establishing a headquarters in Malaysia, although there are no immediate plans to do so. "For the moment, we remain (headquartered) in Singapore, but over time, we'll see how the business goes. If we have a larger pool of investors here (in Malaysia), we will look at any benefit to relocate,' he said. He added that while Malaysia plays a central role in UMS Integration's manufacturing operations, Singapore remains more accessible for international customers, particularly large American semiconductor firms. Meanwhile, executive director and group financial controller Stanley Loh said the recently announced 19 per cent United States (US) tariff on Malaysian goods - down from the previous 25 per cent - is not expected to impact operations significantly. "As our components are customised for our customers' internal operations and not intended for resale, any applicable tariffs are likely to be absorbed by the customers themselves, and we do not foresee any operational impact at this point,' he said. Looking ahead, he expects continued growth, supported by demand for semiconductor equipment used in AI applications. "AI requires high-performance chips, and many of our customers are ramping up capital expenditure to meet that need. "As a contract manufacturer, UMS Integration stands to benefit from this trend and expects stronger performance this year compared to last year, supported by ongoing industry investment in semiconductor equipment,' he said. UMS Integration produces modules, components, and sub-assemblies for companies in the semiconductor, aerospace, and factory automation equipment industries. The company completed a 300,000 sq ft plant in Penang last year for RM234 million, with a second facility scheduled for completion by 2028. - Bernama
