Thursday, May 19, 2011

UMS Holdings rated 'increase exposure' by SIAS

Stock Name: UMS
Company Name: UMS HOLDINGS LIMITED
Research House: SIAS

SIAS Research in a May 16 research report says: "UMS Holdings Ltd's (UMS) 1Q FY2011 net attributable profit grew by 63.4% y-o-y on revenue growth of 41.3%.

"We expect 2011 to be yet another record year for UMS as a result of (a) strong orders from customers, (b) the kick in of tax incentives starting from 2Q and (c) gains of $2.6 million from the disposal of a factory building in Singapore. Net cash flow generated from operations remained strong, at 4.8x that of 1Q last year (up 8.8% q-o-q).

"UMS declared a 1 cent dividend for 1Q FY11. This works out to an attractive annualized dividend yield of close to 7% - which is considerably attractive among companies listed on the SGX. Iintrinsic value of $1.08. MAINTAIN INCREASE EXPOSURE."

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