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3Q21: Excellent Space Management Helped Negate Production Constraints

UMS’ 3Q21 results came in slightly ahead of expectations with earnings of S$15.1m (+17.0% yoy, +3.6% qoq). Revenue remained robust at S$67.6m (+49.7% yoy, +1.2% qoq), on the back of sustained strong growth in the global semiconductor industry, despite production constraints faced in Penang. Outlook remains bright with the acceleration in global chip demand, which UMS expects to take advantage of with its new production site in 3Q22. Maintain BUY with bonus-adjusted target price of S$1.66.

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