UMS Holdings (UMSH SP)

• UMS reported 1Q21 results with sales up 42% YoY and PATMI up 44% YoY. Sales were roughly in line with our expectations while profit surpassed our expectations due to operating leverage.
• Taking JEP under the wing. UMS now has majority control of JEP Holdings, and will look to increase their stake through the mandatory cash offer. Management does not expect the need for debt financing to purchase the remaining shares.
• Maintain OUTPERFORM with raised TP of S$1.51. Recent market momentum has been bearish for tech and semiconductor stocks, creating opportunities for accumulation. Investors can collect a 3.1% yield dividend in the meantime.

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NetLink NBN Trust (NETLINK SP)

4QFY21: In Line; Resilient Demand For Fibre Connectivity

4QFY21 core net profit (excluding a S$7.4m one-time write-off) rose 17% yoy due to a stable revenue base and lower finance cost. FY21 core net profit of S$102.2m (+9% yoy) was within expectations. The group declared a final DPU of 2.55 S cents. Maintain BUY with an unchanged DCF-based target price of S$1.08. The stock offers a sustainable dividend yield of 5% for FY22-24. The stock is defensive amid market volatility.

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UOB KAYHIAN

UOB KAYHIAN

Propnex (PROP SP)

1Q21: Strong Results; Setting Up For More Upside In 2021

Propnex’s 1Q21 net profit jumped 97% yoy to S$16.2m which beat our estimates on a run-rate basis. Across the board, the company’s business segments did well, and with transaction volumes and prices for both private and HDB resale continuing to record multi-year highs, the outlook remains favourable. In the near term, cooling measures remain the key risk. Maintain BUY. Raise target price to S$1.34.

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Riverstone Holdings (RSTON SP)

1Q21: Strong Beat, Strength Of Cleanroom Gloves Underappreciated

1Q21 net profit of RM523m (+1,022% yoy/+58% qoq) beat our estimate by >100%, due to higher-than-expected ASP and net margin, as demand continues to outpace supply. We think Riverstone’s cleanroom gloves stand a good chance of maintaining favourable ASP beyond the pandemic, given its unique selling points. Riverstone targets to increase its capacity by 1.5b pieces a year to 15b pieces in 2023. We raise our target price to S$1.75. Maintain BUY.

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