UMS Holdings

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(17-08-2017, 09:37 PM)Boon Wrote:
(17-08-2017, 09:01 PM)Bibi Wrote:
(17-08-2017, 10:28 AM)valuebuddies Wrote: What's the reason of the sell down? I thought the results was very good and the bonus issue is positive (from the past experience). Strangely I can't understand and tempted me to buy more =)

My guess:
1) year on year first quarter profit improvement of 200+% while second q improvement of only 75+%
2) CEO mention next 2 quarters will be slower.
3) PE ~12+ at $1.10. Not unreasonably high but higher than past few years average.

Not vested.

positive => buoyant semiconductor equipment demand
negative => there is a margin squeeze on the renewed contract by AMAT => how big an impact? we don't know
neutral => contribution from new ventures is still insignificant.
 
Overall=> positive ? negative ? neutral ? especially from FCF perspective, only time will tell...................

Frankly, there has been a lot of theories being talked about among investors on why the price dropped so low after having had so many good news fron this ctr.. But, we will never know for sure what is/are the exact reason(s) for this selloff..... Guessed we don't really need to know, if the price can recover, we just move-on,...
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Frankly, there has been a lot of theories being talked about among investors on why the price dropped so low after having had so many good news fron this ctr.. But, we will never know for sure what is/are the exact reason(s) for this selloff..... Guessed we don't really need to know, if the price can recover, we just move-on,...

If the results was good, investors also need to take profit mah.By the time you recieved the results/reports, you are already too late as the price has already moved.
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What's the reason of the sell down? I thought the results was very good and the bonus issue is positive (from the past experience). Strangely I can't understand and tempted me to buy more =)

That is your thought, the market might think other wise.

The Bonus Shares will be issued as fully paid, at n
il consideration and without capitalisation of
the Company’s reserves.

If it is to be issued without capitalisation of the company's reserves, then who is going to pay for it?
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The new terms of its renewed system integration contract announced earlier this year, which will have a lower average selling price, will also take effect in the near future – as stated in 2Q2017 result announcement.
 
AMAT has made a “margin squeeze” on UMS. How big an impact would that have on UMS’s bottom line and ability to generate sufficient FCF to sustain DPS, going forward, remains to be seen ! 

I reckon this is the most crucial point.....................
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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(08-09-2017, 06:35 PM)Boon Wrote:  
How big an impact would that have on UMS’s bottom line and ability to generate sufficient FCF to sustain DPS, going forward, remains to be seen ! 

I reckon this is the most crucial point.....................

First off, my knowledge of UMS business is minimal. I agree with what you pointed out as the most crucial point.
However, I am hopeful though due to the following statements.

Any margin decrease however will be minimal as the price reduction is mainly due to reduction in our scope of integrating third party materials. This is further mitigated by our efforts to increase production activities in Penang. Our new cleanroom and new system integration team in Penang will be ready in 3Q2017 and we will benefit from the transfer of the system integration operation from Singapore to Penang to lower our operating costs. 
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(08-09-2017, 07:33 PM)JanQuin Wrote:
(08-09-2017, 06:35 PM)Boon Wrote:  
How big an impact would that have on UMS’s bottom line and ability to generate sufficient FCF to sustain DPS, going forward, remains to be seen ! 

I reckon this is the most crucial point.....................

First off, my knowledge of UMS business is minimal. I agree with what you pointed out as the most crucial point.
However, I am hopeful though due to the following statements.

Any margin decrease however will be minimal as the price reduction is mainly due to reduction in our scope of integrating third party materials. This is further mitigated by our efforts to increase production activities in Penang. Our new cleanroom and new system integration team in Penang will be ready in 3Q2017 and we will benefit from the transfer of the system integration operation from Singapore to Penang to lower our operating costs. 

Hi JanQuin,

Agreed. If "margin squeeze" from AMAT could be mitigated by UMS's efforts in lowering operating costs, then it would come down to "volume".

Under the renewed contract, if reduction in margin could be MORE than made up with increase in "volume", then it would still be "net positive".
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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From the above,... this is where that new 'dato' being added into the board composition comes in. He is 'depended upon' to contribute towards making all regulatory matters smooth in Malaysia. Hence,... the board here is making the right moves.

But : WHAT HAPPENED TO THE BONUS ISSUE MATTER ? WHERE IS THE APPROVAL FROM THE REGULATORS ??????? IT'S BEEN SO LONG,...
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(09-10-2017, 10:49 AM)WH Cheng Wrote: From the above,... this is where that new 'dato' being added into the board composition comes in. He is 'depended upon' to contribute towards making all regulatory matters smooth in Malaysia. Hence,... the board here is making the right moves.

But : WHAT HAPPENED TO THE BONUS ISSUE MATTER ? WHERE IS THE APPROVAL FROM THE REGULATORS ??????? IT'S BEEN SO LONG,...

hi WH Cheng,
Please make the necessary updates to your post to reflect accurately your message/intention.

Moderator
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(09-10-2017, 04:16 PM)weijian Wrote:
(09-10-2017, 10:49 AM)WH Cheng Wrote: From the above,... this is where that new 'dato' being added into the board composition comes in. He is 'depended upon' to contribute towards making all regulatory matters smooth in Malaysia. Hence,... the board here is making the right moves.

But : WHAT HAPPENED TO THE BONUS ISSUE MATTER ? WHERE IS THE APPROVAL FROM THE REGULATORS ??????? IT'S BEEN SO LONG,...

hi WH Cheng,
Please make the necessary updates to your post to reflect accurately your message/intention.

Moderator
Please be more specific,... what updates am I required to make ?
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(09-10-2017, 06:15 PM)WH Cheng Wrote:
(09-10-2017, 04:16 PM)weijian Wrote:
(09-10-2017, 10:49 AM)WH Cheng Wrote: From the above,... this is where that new 'dato' being added into the board composition comes in. He is 'depended upon' to contribute towards making all regulatory matters smooth in Malaysia. Hence,... the board here is making the right moves.

But : WHAT HAPPENED TO THE BONUS ISSUE MATTER ? WHERE IS THE APPROVAL FROM THE REGULATORS ??????? IT'S BEEN SO LONG,...

hi WH Cheng,
Please make the necessary updates to your post to reflect accurately your message/intention.

Moderator
Please be more specific,... what updates am I required to make ?

hi WH Cheng,
What is "From the above"? And especially it is the inside the first sentence. Please elaborate or expand on it.

Moderator
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