UMS

UMS: UMS’s largest customer, Applied Materials (AMAT)’s acquisition of Tokyo Electron Ltd (TEL) will make it a dominant industry player, OSK DMG see UMS as the sole Singapore proxy to ride on this landscape-changing event. The deal benefits UMS especially since AMAT contributes close to 90% of UMS’ revenue. Post acquisition, AMAT's enlarged customer will translate into increased sales, boosting demand for UMS' components. In addition, UMS has cost advantage over Japanese component suppliers. OSK DMG maintains Buy with TP of $0.71.