UMS

UMS: 1Q11 results generally in line.
Revenue at $35m, +41% yoy, +3% qoq. Revenue growth was driven by both the Contract Equipment Manufacturing ("CEM") and semiconductor components and systems ("Semicon") segments.
Net profit at $7.6m, +63% yoy, -17% qoq...

Net margin improved to 21.6 % from 18.7% yoy, due to the successful shift in product mix to higher-value semiconductor systems instead of reliance on components and spares. However, net margin fell 5.2% pts qoq, due to higher raw cost of raw mat’ls and subcontractor charges.
Proposed 1ct interim div, in line with previous target of 1ct div per qtr...

Mgt remains confident that its performance in FY2011 will be better than FY2010. Believes its order forecasts from customers over the first six months of FY2011 can be expected to continue for the rest of FY2011. Tips a successful KDR listing as a catalyst for its expansion into S Korea.
Stock trades at 6.5x P/E vs Hisaka at 9x, Frencken at 6.1x.
Pre-results, CIMB, Sias had Buy ratings with TP $0.91, $1.05 rptvly.