Highlights

• 1H26 earnings of S$33m (+66% yoy) exceeded our expectation at 58% of our full-year estimate. 2Q26 earnings reported strong traction, surging 89% yoy and 39% qoq to S$19m.
   

• 2Q26 revenue rose 29% yoy and 26% qoq to S$87m. Revenue from the semiconductor segment increased 28% to S$76m.
   

• UMS maintains a positive outlook as it expects strong demand from its key customers. Maintain BUY with an 18% lower target price of S$3.27.
   

Analysis

• 1H26 results above expectations. UMS Integration (UMS) reported 1H26 earnings of S$33m (+66% yoy), exceeding our expectation at 58% of our full year estimate. 2Q26 earnings reported strong traction, surging 89% yoy and 39% qoq to S$19m.
   

• 2Q26 revenue rose 29% yoy/26% qoq due to growth in semiconductor and aerospace segments. Revenue from the semiconductor segment increased 28% to S$76m, while aerospace revenue surged 59% to S$9m. Semiconductor integrated system sales increased 19% yoy to S$33.5m in 2Q26. Revenue from semiconductor component sales climbed 37% yoy to S$42.1m in 2Q26. Revenue from Singapore increased 24% to S$53.5m from S$43.1m, mainly due to higher shipments of both integrated systems and components. Malaysia revenue surged 50% to S$14.0m as UMS continued to ramp up production of semiconductor components for its new major customer. Korea revenue jumped 347% to S$6.4m due to shipments of semiconductor components to the new major customer’s location in Korea.