UMS Holdings

[BlueKelah]

Looks like the dbs Vickers review effect has worn off, either that or UMS is now just tracking the index down.

DCF thanks for attending the agm and letting us know.

Did anyone ask about next year's renewal of contract with AMAT? hmm when is it due anyway exactly?

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The renewal with AMAT's Endura system is due Dec 2017. Management shared that AMAT has a dual vendor policy and there is another supplier together with UMS. UMS supply more than 80% because of quality and price. Management is hence very confident with the renewal and their current focus is on maintaining high share after the renewal. 

The bigger picture to focus on is beyond this Endure system's revenue. 60% of UMS business come from component business, the high margin area. This is the area that AMAT buy from UMS to service their existing customers as wear and tear step in and components have to be replaced in less than a year. So with Endura winning market share and UMS being a big supplier over the years, this component market is increasing very fast. This is where the profit will shot up!
While winning the renewal will ensure the future installed base will increase. The growth for the high margin business is already secure from the past system wins.

thanks DCF good info to know. 

From AMAT earnings call, it seems there is a lot of orders for 3D nand systems which use CVD instead of PVD. AMAT has other models for CVD and CMP techonolgy which are not Endura line. I think Endura has a model for CVD as well so it does sound like the ramp up in taiwan/China for these sound encouraging for UMS business.

Hopefully  after XD when all the interest over the yearly big dividend has died down and poor market sentiment will allow chance for me to do some accumulation