UMS Holdings

[Xiaosaint]

With the ongoing trade war between US and China, Applied Materials is stopping all pending and future equipment delivery. It will also be ceasing all its equipment service activities in China.

This is going to gravely impact AMAT’s top and bottomline, which in turn may impact UMS’s top and bottomline as well.

https://asia.nikkei.com/Business/China-t...chip-maker


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[Xiaosaint]

UMS released their 2nd quarter report. They are keeping more cash and cash equivalent during these uncertain times (I think it is prudent to do so.)

From the looks of things, dividends are unlikely to return to previous years level until maybe later half of 2020.


https://links.sgx.com/1.0.0/corporate-an...49cfd4a4d6


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[Xiaosaint]

TSMC's $20.5b splurge galvanizes hope of 5G-led rebound for chips and smartphones

https://str.sg/JUZt

Seems like the trough of the Semicon cycle is after us. TSMC is ramping up its capex, which is indirectly good news for UMS.


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[Xiaosaint]

UMS Executive Chairman and CEO Andy Luong said, “The Group has delivered another solid financial performance for the first nine months of the year amidst a still challenging global economy.

However, we are now witnessing signs of an upturn in the overall semiconductor industry as demand is picking up with chip inventories easing and new technological disruptors driving the growth of new products and capabilities.

We are delighted that we have successfully renewed our integrated system business contract with our key customer for another three years

https://links.sgx.com/1.0.0/corporate-an...3Q2019.pdf



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[Dosser]

There have been a lot of horrible results recently (Ezion were strikingly awful), so it is nice to see a very solid set of results from UMS:

https://links.sgx.com/FileOpen/UMS%20-%2...eID=627553

2Q profits up 46% and 1H 52%
 
Semi-conductors seem to be an island of prosperity in a sea of troubles.

[Dosser]

Another set of solid results for Q3:

https://links.sgx.com/FileOpen/UMS%20SGX...eID=638916

Profit up 41% for Q3, 48% for the first 9 months.

[dreamybear]

The company reported a good set of financial results, a healthy cash holding and has mentioned a robust outlook. In that sense, wouldn't keeping the treasury shares, rather than selling them be better for shareholders ? If we view share buybacks as the mgmt feeling the shares are undervalued, would selling treasury shares signal the opposite ?

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NOTICE OF SALE AND USE OF TREASURY SHARES
https://links.sgx.com/FileOpen/UMS%20-%2...eID=744753

Third Quarter Financial Statement And Dividend Announcement
https://links.sgx.com/FileOpen/UMS%20-%2...eID=738429

[weijian]

The company reported a good set of financial results, a healthy cash holding and has mentioned a robust outlook. In that sense, wouldn't keeping the treasury shares, rather than selling them be better for shareholders ? If we view share buybacks as the mgmt feeling the shares are undervalued, would selling treasury shares signal the opposite ?

-------------

NOTICE OF SALE AND USE OF TREASURY SHARES
https://links.sgx.com/FileOpen/UMS%20-%2...eID=744753

Third Quarter Financial Statement And Dividend Announcement
https://links.sgx.com/FileOpen/UMS%20-%2...eID=738429

hi dreamybear,

Share buyback is generally a capital allocation decision. Hence share sellback is similarly a capital allocation decision too.

As the saying goes, there are many reasons for selling and so it is not easy to "guess" why they are selling their treasury shares. But if one were to stick to the capital allocation mental framework, my guess is that Mgt believes the capital (ie. cash used to buy the treasury shares) is better utilized for reinvesting in the business or distributing them as future dividends.