(2cents ordinary + 1.5cents special dividend)
At current closing price $0.655, this is a yield of 5.34%.
Bringing FY2013 yield close to 10% (6.5cents)
Net profit for FY2013 compared to FY2012 increased significantly by 70% to $28.9m from $16.9m
Net profit for Q42013 compared to Q42013 JUMPED 806% to $10.978m from $1.2m.
Q4 EPS = 3.19 cents
FY2013 EPS = 8.4 cents
Current P/E ratio = 7.80 ($0.655/0.084)
NAV = 55.6cents
P/BV = 1.17 (Slightly premium)
Zero borrowings. Cash balance at $29.2m ($0.085 per share)
Some extracts from report:
"Higher revenue was mainly due to higher semiconductor component and integrated system sales during 4Q2013"
"Revenue in the Semicon segment soared 64% to S$33.2 million in 4Q2013 from S$20.3 million in 4Q2012. Revenue contribution from the CEM decreased by 8% to S$1.3 million in 4Q2013, compared to that of S$1.4 million a year ago"
As we can see and infer, this stellar performance was contributed largely by the semiconductor segment. UMS holdings partnership with Applied Material (AMAT) is shrewd business. 90% of revenue comes for them. Contract between AMAT and UMS expires in about 3 years time. On 26 September 2013, AMAT acquire its rival Tokyo Electron Ltd (TEL). AMAT and TEL are the 2 out of 3 biggest chip equipment firms in the industry. 1st: AMAT, 2nd: ASML, 3rd: TEL. With the merger, AMAT will own about 1/4 of the chip equipment market and 1/3 of front-end wafer fab equipment market
Things to note:
1. UMS over reliance on Applied Material. (But I heard UMS may be venturing into healthcare sector)
2. Semi conductor industry is very cyclical
UMS just broke out of its uptrend line to reach further height. Now at overbought region with doji formed. Watch for next confirmation candle. Btw, I'm rather weak at my TA, so if I'm wrong, please do correct me.
Yet another miss opportunity for me. Had this on my watchlist back in June 2013 at 47cents. Now I can only watch it shoot up. For those who got this at around this price and still holding it. Congrats. Now you are sitting on a 13% yield per annum. That is insane dividend yield. I will definitely consider hopping on if this counter if drops for some apparent reason while fundamental still stays intact.
Cheers!
Little Boy
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