UMS

UMS: Results in line. 1Q rev at $32.0m -8.5% yoy +27.1% qoq with net profit at $6.0m -20.1% yoy +5.5% qoq. Co’s gross material margin remained stable at around 52% but co suffered some impact due to forex losses which caused other charges to rise 95% yoy to $1.3m. Of note, US saw a 44% decline yoy in terms of revenue contribution although Sg continued to be the key region with $22.3m and 11% yoy growth. Semiconductor segment saw a decline of 9% in total sales. UMS is of the view that the decline in the semicon space since 3Q2011 is showing signs of deceleration and the consensual projection for industry spending has been revised upwards a few times. This will be further boosted by higher than expected capex program by major foundries which shld set a more positive 2012 compared to 2011. Co has maintained a dividend of 1.0c for this quarter same as last yr. EPS is approx 1.75c with annualized P/E of 4.9x. UMS has an indicative yield of 14.9% and a P/B of 0.6x