UMS Holdings

UMS Holdings: 4Q13 net profit of $11m (+806% y/y, 128% q/q) came ahead of consensus estimates, while revenue spiked to $34.5m (+59% y/y, 36% q/q) mainly due to higher semiconductor component and integrated system sales attributed to strong customers demand in the global semiconductor market. Gross margin improved 22ppts to 54% mainly due to better product mix and inventory provisions. UMS appears to have a healthy growth trajectory ahead, given the robust revenue guidance from dominant customer- Applied Materials, which accounts for >90% of revenue, after releasing its above-consensus results last week. UMS declared final and special DPS of 2¢ and 1.5¢, bringing FY13 total to 6.5¢, translating into an attractive 10% dividend.