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UMS Holdings Limited FY2012 Results

I acquired my stake in UMS on 6 Sep 2012. My posting was here. Ever since then, i have received dividend twice in the last 3 months, amounting to $200.Based on the $200 alone, my yield was already 4.9% and it is not even "annualised".

UMS announced a full year profit of $17m, compared to $27.6m before, which is pretty "disappointing" but the interesting thing is that the free cash flow is $29.3m, which is pretty impressive. In other words, the Company is highly cashflow positive. I once spoke to a veteran in the semiconductor space and he said that Free Cash Flows is more important in the tech sector than anything else.  


The fully diluted EPS for FY2012 is 4.94 cents and at the current price of 44.5c, that will imply a PE multiple of about 9x. This probably indicates the company is trading at fair value unless it can show some uplift in its EPS next year.

The Company also announced another 2 cents dividend for FY2012, and that will bring the total dividends to 4 cents for me, implying my yield is approximately 10%, based on my entry price of 40c. (The company actually paid 5 cents dividend for FY2012.)

Outlook

It is interesting to note the positive tone in the "outlook" from the annoumcement below:


I will stick with UMS since it has been generating very good cashflow to my "passive income".  I will end off with the statement from the Founder and CEO:

"While the last quarter results are significantly lower, we believe that the recent downturn in the demand for semiconductor equipment has bottomed out. Similarly, our key customer has revised their forecasts upwards, with revenue growth in the region of 15-25% sequentially for the first few months of 2013. We are optimistic about the potential of our markets this year, with mobile products such as smart phones and tablets being the main drivers of investments in semiconductor equipment."

Happy SRSing. I am pretty comfortable with this counter. :) 

2 comments:

  1. Did you try calculating the intrinsic value?

    ReplyDelete
  2. Nope. Didn't attempt to do that. Maybe will do that tonight. You have a figure on that?

    ReplyDelete