UMS Holdings

[shuoyanz]

Yo! Just got back from the AGM for UMS. There was much discussion on their recently bought new water treatment original equipment manufacturing company (Kraft Engineering). While it is still in its infant stage, the chairman seems very optimistic about the business. On the other hand, the director was saying their core business in semiconductor manufacturing equipment business would be good at least for the next two years as semiconductor companies around the world are doing well and ramping up capex (industry estimated to increase capex by ~10% for 2017 & 2018)

At current price, it has a dividend yield of ~5.5%. And I think there may still be some upside if their Kraft Engineering business works out but only time will tell.


Sent from my iPhone using Tapatalk

Hi, can you share more info on the renewal with AMAT? Like have the contract terms changed for the better or worse? 
This should be the main revenue source and more important than the new investment to me. 

Thanks in advance

One of the management also shared that AMAT was not willing to do 5 year contracts anymore. Also, in return for the shorter contract and lower unit price, AMAT would certify the Penang factory (not sure if its for assembly or manufacturing). Management seemed confident that they would maintain their profits by their move to Penang.