UMS

UMS: UOB Kay Hian note that stock is trading at 5x 2011 PE, the lowest among peers. Based on consensus estimate, UMS has a TP of $1.08 and is set to report earnings growth of 15.8% in 2012 to $32.0m. House view that UMS should be trading at $0.65/share, pegged to the 3-year historical average PE of 7.0x on consensus EPS of 9.3 cents. This gives us an upside of 69%. Technically, the stock has rebounded from support at $0.325 and is hovering near the S$0.40 resistance level. The next resistance level could be at S$0.485 should the stock surpass the $0.40 mark.