UMS

UMS: 9MFY13 core earnings were 93% of consensus and 90% of CIMB forecasts as the 3Q13 slowdown was not as bad as expected. The fourth quarter looks bright and CIMB's 2¢ DPS assumption will likely materialise. Visibility now extends into 1QFY14. 3Q13 earnings were driven by a better product mix and lower depreciation charge. For 4Q, UMS expects growth to resume as demand from customers picks up strongly. The industry expert Gartner predicts that 2014 semiconductor capital spending will increase 14.1%, followed by 13.8% growth in 2015. The FY14-15 dividend yields are attractive at 7.3% (4¢ DPS). Latest broker ratings as follows: CIMB maintains Outperform and increased TP to $0.65 from $0.60