UMS

UMS: We highlight that CEO Luong Andy has pared down his stake twice this month via the market, after selling 10m shares and 3m shares last Thurs and Fri respectively, at $0.674-0.694/share. The two transactions reduced his stake from 25.78% to 21.99%. This followed Luong's 7m share disposal in Mar this year at $0.646 apiece. In addition, substantial shareholder and key customer, Applied Materials (accounts 80% of UMS' revenue), also reduced its stake in the semiconductor equipment maker by 2.9m shares on 2 and 5 Jun, at an average $0.71/share. The stake pare down came after the stellar 62% run since the start of the year till 2 Jun, and may place a near-term resistance for the counter. At $0.695, UMS trades at a forward P/E of 9.7x and gives an attractive yield of 7.5%.