UMS Holdings

[shanrui_91]

Thanks Nick,

I managed to find the net profit margin for 2010 ( 22.3% ) and 2011 ( 24.2% ) on page 8 of AR2011. These figures look impressive compared to that of its competitors.

2010 net profit margin of its competitors: AEM (2.8%), Avi-Tech (3.1%), MIT (6.9%), Micro-Mechanics (15.1%), and Rokko (10%). May be UMS has some kind of competitive advantage over them.

ums provides multiple value-added services for its customer and they are being billed as a whole instead of individual service. I think Micro-mechanics is worth looking into as well given that they have remained profitable even in 2009. If not for their acquisition of AMP3 LLC in 2008 which contributed to a $3m losses in 2009 (they were close to breakeven then the GFC struck), their profit will have been $3.5m. They have a strong balance sheet as well with no debt and with sufficient cash to pay for all the payables.

http://micromechanics.listedcompany.com/summary.html