CGS CIMB

UMS Holdings (UMSH SP)
Resilient profitability

Strong 1Q22 on better-than-expected margins
1Q22 PATMI of SGD19.4m (+26% YoY) was ahead of our and consensus estimates, accounting for 31%/27% of respective FY22E. To our positive surprise, margin erosion was more benign than expected despite the inflationary environment. As such, we raise FY22E PATMI by 13%. Growth was primarily driven by strong demand and the robust outlook for semiconductor equipment. Our TP rises by 6% to SGD1.50 (14x FY22E P/E, from 15x previously). BUY.

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BRC Asia Ltd
Riding on industry tailwinds

■ BRC’s 1H22 net profit of S$39.8m (+108% yoy) was a strong beat, helped by continued recovery of construction activities in Singapore.
■ We remain confident of further recovery in coming quarters as the labour shortage eases, given steady construction demand and work backlog.
■ Reiterate Add with a higher TP of S$2.50. BRC is our sector top pick for its relatively attractive valuation and higher dividend yield. 

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CGS CIMB

CGS CIMB

Riverstone Holdings
Solid execution

■ 1Q NP of RM109m (-2% qoq) slightly above expectations, showing RSTON’s earnings resiliency vs. peers, amid declining healthcare glove ASPs.
■ Strong demand for cleanroom gloves supports elevated ASPs; meanwhile healthcare glove ASPs likely bottomed, supported by industry’s higher costs.
■ RSTON continues to prioritise customised offerings in both the cleanroom and healthcare segments to improve stickiness in ASPs. Reiterate Add.

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UMS Holdings Ltd
No slowdown seen in FY22F

■ 1Q22 revenue was above our/Bloomberg consensus full-year forecast while
1Q22 net profit was in line with our/Bloomberg consensus FY22F forecast.
■ UMS has appointed a tax consultant to help resolve the tax matter with the
Malaysian authorities.
■ Reiterate Add. UMS is still seeing strong demand from its customers

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