Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>UMS Holdings' stock price has been oversold in the past several weeks. It posted excellent results in 4Q 2021 and its valuations have become more attractive. </li>
<li>If the global semiconductor cycle undergoes a major downtrend, UMS Holdings would not be immune from such downturn and the company is likely to experience lower sales and profit growth.</li>
<li>We believe that UMS Holdings has 20% to 40%+ upside from current levels over the next one year, based on historical valuation multiples in the past three years. </li>
</ul>


UMS Holdings' stock price has been oversold in the past several weeks. It posted excellent results in 4Q 2021 and its valuations have become more attractive. 
If the global semiconductor cycle undergoes a major downtrend, UMS Holdings would not be immune from such downturn and the company is likely to experience lower sales and profit growth.
We believe that UMS Holdings has 20% to 40%+ upside from current levels over the next one year, based on historical valuation multiples in the past three years. 


UMS Holdings: Excellent Results in 2021 & Valuation Has Become More Attractive After Recent Sell-Off

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Cross Asset Strategy

<ul>
<li>The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.</li>
<li>The past week saw insights on <a href="https://www.smartkarma.com/entities/xl-axiata-tbk-pt" target="_blank" data-smartkarma-citation="entities:15028:1" rel="noopener">XL Axiata (EXCL IJ)</a>, <a href="https://www.smartkarma.com/entities/kalbe-farma-tbk-pt" target="_blank" data-smartkarma-citation="entities:6303:1" rel="noopener">Kalbe Farma (KLBF IJ)</a>, <a href="https://www.smartkarma.com/entities/bfi-finance-indonesia-tbk-pt" target="_blank" data-smartkarma-citation="entities:8447:1" rel="noopener">BFI Finance Indonesia (BFIN IJ)</a>, and <a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a> post recent results. </li>
<li>We also take a close look at <a href="https://www.smartkarma.com/entities/siam-commercial-bank-pub-co" target="_blank" data-smartkarma-citation="entities:214:1" rel="noopener">Siam Commercial Bank Pub Co (SCB TB)</a> after its numbers but also look more closely at its upcoming restructuring.</li>
</ul>


The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.
The past week saw insights on XL Axiata (EXCL IJ), Kalbe Farma (KLBF IJ), BFI Finance Indonesia (BFIN IJ), and Astra International (ASII IJ) post recent results. 
We also take a close look at Siam Commercial Bank Pub Co (SCB TB) after its numbers but also look more closely at its upcoming restructuring.


The Week That Was in ASEAN@Smartkarma - XL Coverging, Kalbe Rebalancing, and SCB Refocusing

<ul>
<li>UMS Holdings is a beneficiary of continued strong global demand for semiconductor chips and equipment. </li>
<li>The company had excellent results in 3Q 2021. Its total sales rose by 50% YoY to SGD 67.6 million net profit also increased by 17% YoY in 3Q 2021.</li>
<li>There has been an increasing bullish sentiment on the global aerospace sector and the company's tuck-in acquisitions in the aerospace sector in the past several years now appear more attractive.</li>
</ul>


UMS Holdings is a beneficiary of continued strong global demand for semiconductor chips and equipment. 
The company had excellent results in 3Q 2021. Its total sales rose by 50% YoY to SGD 67.6 million net profit also increased by 17% YoY in 3Q 2021.
There has been an increasing bullish sentiment on the global aerospace sector and the company's tuck-in acquisitions in the aerospace sector in the past several years now appear more attractive.


UMS Holdings: Attractive Valuations & Continued Strong Global Demand for Semiconductor Equipment

Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

<p><a href="https://www.smartkarma.com/entities/aem-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11019:1" rel="noopener">AEM (AEM SP)</a> reported weak results last week but subsequently announced a 103 million SGD investment by Temasek. </p><p>The Temasek investment comes ahead of an expected strong 2H21 and 2022 but more importantly right ahead of probable new major customer wins. As well documented AEM is highly dependent on <a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel Corp (INTC US)</a> for 80% of its revenues and needs new customers to diversify. Management has quietly been forming new relationships and is in various trial phases with some of the largest semiconductor companies other than Intel. During 1Q21's conf call we first heard of management's growing optimism and this was again reiterated in 2Q21.</p><p>On the 3Q20 call AEM's Chairman Loke Wai San was asked if he would consider a Nasdaq listing. His answer at the time was <em>"once we get to a billion USD market cap we can consider it".</em> The combination of the Temasek investment and the anticipated major new customer wins will likely get us there. In this regard <a href="https://www.straitstimes.com/business/companies-markets/sgx-and-nasdaq-extend-partnership-to-help-firms-access-capital" target="_blank" rel="noopener">please recall</a> that in July 2020 SGX and Nasdaq agreed to make "dual-listings" between both exchanges easier. What better company to kick-off this agreement than AEM?</p><p><strong>Fair Value increases to 8 SGD (20x P/E on 0.40 SGD FY22 EPS)</strong>. Recall, AEM already earned 0.35 SGD EPS in 2020, so assuming new customer wins materialize 0.40 SGD is not a stretch.</p>

AEM (AEM SP) reported weak results last week but subsequently announced a 103 million SGD investment by Temasek. The Temasek investment comes ahead of an expected strong 2H21 and 2022 but more importantly right ahead of probable new major customer wins. As well documented AEM is highly dependent on Intel Corp (INTC US) for 80% of its revenues and needs new customers to diversify. Management has quietly been forming new relationships and is in various trial phases with some of the largest semiconductor companies other than Intel. During 1Q21's conf call we first heard of management's growing optimism and this was again reiterated in 2Q21.On the 3Q20 call AEM's Chairman Loke Wai San was asked if he would consider a Nasdaq listing. His answer at the time was "once we get to a billion USD market cap we can consider it". The combination of the Temasek investment and the anticipated major new customer wins will likely get us there. In this regard please recall that in July 2020 SGX and Nasdaq agreed to make "dual-listings" between both exchanges easier. What better company to kick-off this agreement than AEM?Fair Value increases to 8 SGD (20x P/E on 0.40 SGD FY22 EPS). Recall, AEM already earned 0.35 SGD EPS in 2020, so assuming new customer wins materialize 0.40 SGD is not a stretch.

AEM: Temasek Investment + New Customers = Pre-Cursor to Nasdaq Listing? Fair Value to 8 SGD

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Rex International Holding / Equity Bottom-Up

<p>For our next Webinar, we have the pleasure of welcoming Insight Provider <a href="https://www.smartkarma.com/profiles/nicolas-van-broekhoven-24a66c2d-bca4-4f5b-adda-c4e2bcc509f4" target="_blank" data-smartkarma-citation="accounts:1208" rel="noopener">Nicolas Van Broekhoven</a>, who will talk to us about some of his favourite Singapore-based small- and mid-cap investment ideas and his view on them going forward.</p><div><div><h3>The webinar will be hosted on Wednesday, 11 August 2021, 17:00 SGT/HKT.</h3></div></div><div><div>
<div class="content-highlight"><h2><a href="https://share.hsforms.com/1H9pFZOB-RF2J00kbvMmxcw2c5gj?zoom_webinar_id=86724910057" target="_blank" rel="noopener">Register for the Webinar here</a></h2></div>
<p>Nicolas Van Broekhoven is a generalist investor with a preference for small and mid-cap companies and special situations. He grew up in Europe, went to university in the US, and lives in Singapore, which has given him a broad scope on the world and investing in general.</p>
</div></div>

For our next Webinar, we have the pleasure of welcoming Insight Provider Nicolas Van Broekhoven, who will talk to us about some of his favourite Singapore-based small- and mid-cap investment ideas and his view on them going forward.The webinar will be hosted on Wednesday, 11 August 2021, 17:00 SGT/HKT.
Register for the Webinar here
Nicolas Van Broekhoven is a generalist investor with a preference for small and mid-cap companies and special situations. He grew up in Europe, went to university in the US, and lives in Singapore, which has given him a broad scope on the world and investing in general.


Smartkarma Webinar | Singapore Investment Ideas

Singapore

AEM Holdings Limited designs and manufactures semiconductor manufacturing equipment and related tooling parts and precision machining of components for semiconductor industry.  The Company also manufactures and distributes electronics, engineering, chemical and related products. AEM provides engineering services.

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AEM (AEM SP)

UMS Holdings: Excellent Results in 2021 & Valuation Has Become More Attractive After Recent Sell-Off

UMS Holdings' stock price has been oversold in the past several weeks. It posted excellent results in 4Q 2021 and its valuations have become more...

Douglas Kim

The Week That Was in ASEAN@Smartkarma - XL Coverging, Kalbe Rebalancing, and SCB Refocusing

The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity...

Angus Mackintosh

UMS Holdings: Attractive Valuations & Continued Strong Global Demand for Semiconductor Equipment

Three key catalysts of UMS Holdings include continued strong global demand for semiconductor chips, bullish sentiment on the global aerospace...

Douglas Kim

AEM: Temasek Investment + New Customers = Pre-Cursor to Nasdaq Listing? Fair Value to 8 SGD

AEM remains a top pick as it digests the Temasek investment and gets ready to list on Nasdaq in 2022. Major new customer wins are likely as...

Nicolas Van Broekhoven

Smartkarma Webinar | Singapore Investment Ideas

Join us on 11 August, 5pm SGT, when we talk to Nicolas Van Broekhoven about some of his favourite Singapore-based small- and mid-cap investment...

Smartkarma Research

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