Singapore Stock Market News

UMS Holdings Ltd - All about dividends

StockFanatic
Publish date: Wed, 07 Aug 2013, 01:37 PM
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UMS's 1H13 core profit was above expectations due to better margins and lower-than-expected costs. There could be a slowdown in 3Q13 before growth resumes in either 4Q13 or 1Q14. UMS has declared its 15th consecutive quarterly dividend.

1H13 core was above expectation at 65.5% of CIMB's forecast and 67.1% of consensus. Its 15th consecutive quarterly dividend should support its share price. Though seen as a technology company, investors' focus has long shifted to yields from growth given its sustained dividend payouts. Maintain Outperform and target price at 1.12x CY13 P/BV (high end of its last earnings upturn).
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