UMS Integration moving up supply chain, expanding Penang operations

The Sun

4 days ago

KUALA LUMPUR: UMS Integration Ltd is ramping up its push into the artificial intelligence (AI) and high‑performance computing supply chain, eyeing higher‑value precision components and expanding its Penang facilities as part of a five‑year growth roadmap following its landmark secondary listing on Bursa Malaysia today.
CEO Luong Andy said the Singapore‑headquartered precision engineering specialist, which already counts two major semiconductor clients among its key customers, sees 'tremendous opportunities' in advanced packaging solutions critical for AI chips, a segment driving global capital expenditure in semiconductors.
'We are moving up the semiconductor value chain and see many opportunities, especially in AI and high‑performance computing, where we have the know‑how and capability to produce the precision components needed,' Luong told reporters after the listing ceremony.
The company's shares opened at RM5.15, 3% above the reference price of RM5, and traded as high as RM5.39 in early deals, valuing UMS Integration at about RM3.7 billion. The counter, categorised under the Industrial Products and Services sector on Bursa Malaysia, closed at RM5.50 a share.
Executive director Stanley Loh Meng Chong said UMS Integration is doubling down on Penang, where it operates its largest production plant, to support growing orders for advanced semiconductor equipment.
The company recently acquired additional land in Penang and plans to begin construction next year, adding about 200,000 sq ft to reach 1 million sq ft in total manufacturing space within the next two to three years.
'Penang remains central to our volume manufacturing strategy. This expansion will support key customers' ramp‑up in operations, especially for advanced node manufacturing and packaging linked to AI chips,' Loh said, adding that Malaysia's accessibility and talent pool make it a preferred base for scaling production.
UMS Integration's secondary listing on Bursa Malaysia was undertaken by way of introduction, meaning no new funds were raised. The company retains its primary listing on the Singapore Exchange, where it last traded at S$1.52.
Luong said the dual‑listing strategy is aimed at enhancing liquidity and providing 'flexibility to tap different equity markets' for future fundraising if needed.
'This listing broadens our investor base and positions us better to access capital when opportunities arise,' he noted.
For the first quarter ended March 31, 2025, UMS Integration posted S$57.7 million in revenue, up 7% year‑on‑year, with net profit edging up to S$10.1 million. The semiconductor segment contributed 84% of revenue, followed by aerospace at 11%.
The group remains in a net cash position of S$81.4 million and continues its policy of quarterly dividends, paying S$0.01 per share in July.
UMS Integration has historically been reliant on one major customer but is now balancing its portfolio with a second key client of comparable size. Loh said this diversification, coupled with demand from AI‑driven chipmakers, is expected to underpin growth in 2025 and beyond.
'We believe this year will be better than last, and the years to come will also benefit from the trend of higher equipment spending,' he said.
While research and development remains anchored in Singapore, Loh said Malaysia will continue to absorb most of the group's manufacturing investments, with Penang serving as its volume hub for global customers.
Deputy Finance Minister Lim Hui Ying, who officiated at the ceremony, hailed the cross‑border listing as a milestone for Malaysia's capital market and a signal of growing economic integration between Malaysia and Singapore.
She said UMS Integration's move underscored confidence in the robustness of Bursa Malaysia's infrastructure, investor depth and governance standards, while aligning with the government's ambitions to position the country as a hub for regional and international listings.
Lim highlighted Penang's pivotal role in UMS Integration's growth story, noting how the company's expansion has paralleled the state's rise as a global semiconductor and advanced manufacturing hub.
'UMS Integration's continued investment has not only enhanced Penang's manufacturing ecosystem but also created high‑value jobs and opportunities, aligned with the Penang 2030 vision to attract quality, future‑forward investment,' she said.
She added that Malaysia's regulatory ecosystem is evolving to support innovation, digitalisation and sustainable finance, and expressed hope that UMS Integration's secondary listing would inspire other regional players with Malaysian ties to consider a presence on Bursa Malaysia.
'This milestone reflects our broader aspiration to connect Asean businesses with global investors, while driving high‑tech and capital‑intensive sectors critical to the region's growth,' Lim said.