Singapore Stock Market News

UMS - Dividend Proxy To Applied Materials

StockFanatic
Publish date: Tue, 25 Feb 2014, 11:33 PM
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In view of the strong results from UMS' key customer as well as the robust industry outlook, we upgrade our earnings forecast for the group and expects sterling 4Q results, along with a dividend hike.

Maintain BUY, with our DCF-based TP increased to SGD0.84 (WACC: 11.5%, terminal growth: 0%). At a 11% FY14 yield, UMS is an attractive dividend proxy to applied materials and semiconductor industry.
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