Latest news with #UMSIntegrationLtd
The Sun
01-08-2025
- 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
01-08-2025
- Business
- The Star
UMS shines on debut, shrugging off global tariff concerns
KUALA LUMPUR: UMS Integration Ltd, which made its debut on the Main Market of Bursa Malaysia on Friday, expects minimal impact from US tariffs, as any applicable tariffs on shipments to the US will be absorbed by its customers. Executive director Stanley Loh Meng Chong said most of the group's products are supplied to major clients in Malaysia and Singapore. He said the company does ship some of its products to the US but maintained that 'customers will absorb it, given that it is all customised products'. 'If these customers do not receive these products, then they will not be able to ship their products. Hence, we do not see any impact from US tariffs for now,' he told the media following the group's listing ceremony. Malaysia managed to strike a deal with Washington, resulting in a lower tariff rate of 19%. Meanwhile, levies on Singapore goods exported to the US are likely to remain at 10%. UMS specialises in complex precision machining and the fabrication of sheet metal, as well as the provision of related services, such as value-added sub-module assembly for the semiconductor and aerospace industries and full module assembly services for front-end semiconductor equipment and surface treatment. For the financial year ended Dec 31, 2024 (FY24), its semiconductor segment accounted for 84.5% of total revenue, followed by aerospace at 10.9%, and others contributing the remaining 4.6%. UMS has production facilities in Penang, Singapore and the US. The group started its operations in Penang in 2009 at a 400,000 sq ft production facility in Simpang Ampat. Last year, the group commissioned and completed a new 300,000 sq ft manufacturing plant in Penang at a cost of about RM234mil. Its client is an undisclosed Nasdaq-listed US semiconductor equipment manufacturer. Further, UMS is planning to construct an additional facility in Penang, targeted for completion in 2028. Chief executive officer Andy Luong said the company's headquarters will remain in Singapore and the plant in Penang will be primarily focused on volume manufacturing. 'We have a larger team and space in Penang. As for engineering capabilities and research and development it will be carried out in Singapore. That said, we will see how the business progresses over time. If we have a larger pool of investors in Malaysia, we will look into the benefits of relocating here,' he said. Loh said the UMS' earnings outlook remains supported by the strong demand for semiconductors especially in the artificial intelligence segment which requires a lot of chips. 'Many companies are ramping up capital expenditure to invest in more semiconductor equipment to produce more chips. This will drive the demand for semiconductor equipment, and as a contract manufacturer, UMS will be able to benefit from this trend. 'Hence, we expect this year to be better than last year, and in the years to come, we believe we will continue to benefit from the trend of higher equipment spending,' he said. UMS' listing marks Malaysia's first secondary listing by a Singapore-listed company. Shares of UMS made a strong debut on the Main Market. The stock opened at RM5.15, a premium of 3% over its reference price of RM5. The counter hit a high of RM5.40 and a low of RM5.15 in intraday trade. UMS closed its maiden trading day on Bursa Malaysia at RM5.50. Rakuten Trade has a fair value of RM5.47 for UMS premised on its role in front-end of the semiconductor supply chain, focus on critical semiconductor components that have a high barrier and lesser competition, strong operating performance with consistent double-digit profit margin and solid net cash position.
The Star
01-08-2025
- 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
