UMS

Iggy's Journal: AEM's Profit Jumped Nearly Tenfold and the Stock Still Dropped. Here's Why That Isn't As Strange As It Sounds

3 September 2026, AM

Podcast Release

New Iggy Answers episode is up. Three SGX names, AEM Holdings, UMS Integration, and Frencken Group, are all riding the same AI infrastructure demand right now, but "AI beneficiary" is one label sitting on top of three very different stories. AEM's H1 net profit went from S$3.1 million to S$30.8 million, guidance raised twice this year, and the share price still fell against my last confirmed check. UMS Integration posted a 66% profit jump. Frencken moved the other way. The episode walks through growth trajectory, income reliability, and valuation as three separate questions instead of one combined verdict.

My Personal Take

Okay, I need to tell you about AEM because this one genuinely bugged me for a bit. Profit up almost tenfold. Guidance raised, twice. And the price still dropped. My first reaction was the same as yours probably is right now, that makes no sense.

It does make sense, just not the kind of sense a headline gives you. A growth story and an income story are not the same test, and AEM is still short of my yield hurdle even after a result like that. Good business, still doesn't clear my bar for retirement income, those two things can both be true at once. That is basically the whole episode in one sentence, but listen to the full thing, because UMS and Frencken each fail that same test in their own separate way, and none of them fail it for the same reason.

Anyway. Kopi in hand, episode's up, go listen.

📺 https://youtu.be/-Gzsf3ijqXo

📩 https://investingiguana.com/p/three-sgx-chip-suppliers-are-riding

Get everything, zero-day access on both platforms, full Red Zone watchlist, institutional-grade cheatsheets, with Iggy's Elite Investors, S$12/month.

Not financial advice. Iggy's Forensic Compliance Standards apply.

Cheers, Iggy 🦖

Iggy's Journal: Frencken Falls 8% After a S$100 Million Placement

28 August 2026, PM

News:

Frencken (E28) fell as much as 8.3% on Friday after proposing a S$100 million share placement, Business Times reported (Shikhar Gupta, 28 August 2026). It opened as low as S$2.33, down S$0.21 from Tuesday's close of S$2.54. Trading was halted on Wednesday and Thursday.

The placement is 44.1 million new shares at S$2.2687, a 10% discount to the 25 August volume-weighted average price of S$2.5207, placed privately with institutional and accredited investors. That is about 10.3% of existing issued shares, and 9.3% of the enlarged base after completion. BT (Young Zhan Heng, 27 August 2026) said completion is expected on 3 September.

The company said the raise is to fund expansion in manufacturing, mechatronics, and advanced plastic solutions, and to leave room for strategic investments and M&A. After fees, about S$87.4 million (90%) is earmarked for that expansion and the balance sheet, and about S$9.7 million (10%) for working capital or bank-loan repayment. As at 30 June, Frencken had S$123 million in cash and S$53.2 million in borrowings. Mechatronics, including the semiconductor business, was 90.1% of first-half FY2026 revenue.

Year to date Frencken is still up 78.9% on the AI boom, BT said. Customers named include Applied Materials and ASML. 

Just Reporting:

This is a placement story, not a yield story. Frencken is not on the forensic ledger, so there is no zone line to restate. The 8% open is the market pricing a 10% discounted issue after a 78.9% year. On BT's own figures they already hold S$123 million of cash against S$53.2 million of borrowings, so this is not a cash-hole raise on those numbers. Whether the extra shares fund real capacity or just sit in front of the same earnings is a different question. AEM's year and UMS's year stay their own facts. They do not confirm anything about this name.

Not financial advice. 

Cheers, Iggy 🦖

$UMS(558.SG) still waiting for a breakout at $3.1 before taking partial profit,imo. Hopefully before Sep!

$UMS(558.SG)UMS remains on my radar as a beneficiary of the long term AI and semiconductor investment cycle. While the sector has seen some volatility recently due to rising Treasury yields, demand for advanced chips and semiconductor equipment continues to be supported by AI infrastructure spending.

UMS has strong exposure to the semiconductor equipment industry, and any recovery in semiconductor sentiment could be a positive catalyst.

Market sentiment can change quickly, but quality companies with exposure to long term growth trends are worth following during pullbacks.Upcoming semiconductor demand trends, AI-related capex spending, and whether UMS can maintain its earnings momentum in the quarters ahead.

🦎 ANALYST WATCH | 19 AUGUST 2026

558 UMS INTEGRATION

WHAT THE ANALYST SAYS

RHB maintains BUY, raising its target price to S$3.69 from S$3.37, implying 36 percent upside, after a first half earnings beat. The broker lifted its FY26 earnings forecast by 13 percent and FY27-28 by 9 percent. First half revenue rose 25 percent year on year to S$157 million, and net profit jumped 66 percent to S$33 million, already 60 percent of RHB's prior full year forecast. Semiconductor revenue grew 25 percent, aerospace grew 37 percent. Gross margin dipped in the first quarter on lower margin new customer orders but recovered to 54.2 percent by the second quarter, and EBIT margin improved to 23 percent. UMS declared a second interim dividend of 1 cent, taking first half dividends to 2 cents, in line with expectations. RHB's growth thesis rests on accelerating AI driven semiconductor capital spending and a new major customer that kept increasing orders through the second quarter. The broker floats a scenario where higher AI chip packaging volumes could help UMS reach that customer's own stated S$300 million annual order target sooner, this is RHB's own projection, not confirmed company guidance. The target price implies a forecast FY27 dividend yield of only about 1.1 percent, this is a growth and valuation call, not an income one. Main risks flagged are a delayed semiconductor recovery and a slower than expected customer ramp up.

NOTE

For the full report, check RHB's published research or your broker platform.

Not financial advice. Iggy's Forensic Compliance Standards apply.

$UMS(558.SG)UMS delivered a strong 2QFY26 performance, with net profit surging 90% YoY to S$19.8 million and revenue rising 29% YoY to S$87.1 million.

Growth was driven by continued strength in its semiconductor business, with semiconductor revenue up 28%, while aerospace revenue jumped 59%. The company also declared a 1 cent interim dividend and expects to remain profitable in FY2026.

The results highlight how UMS continues to benefit from the AI and semiconductor investment cycle. A supportive U.S. CPI and PPI backdrop also helps sustain positive sentiment toward semiconductor and technology stocks.

UMS continues to execute well, supported by strong earnings growth, healthy semiconductor demand, capacity expansion in Penang and Vietnam and a supportive AI market environment. While semiconductor cycles can be volatile, the longer term outlook remains constructive

$UMS(558.SG)UMS continues to trade with a constructive outlook as the semiconductor equipment sector benefits from rising AI infrastructure investment and improving industry demand.Recent earnings showed resilient profitability, healthy cash generation and a strong balance sheet, allowing UMS to continue rewarding shareholders with attractive dividends. While semiconductor demand remains cyclical, structural drivers such as AI, advanced packaging and data centre expansion continue to support long-term capital expenditure.

UMS is consolidating after its recent rally. As long as the stock holds above key support levels, the overall uptrend remains intact, with investors watching for a breakout on stronger volume.Investors may consider accumulating during periods of weakness while monitoring upcoming semiconductor demand trends and customer order momentum

$UMS(558.SG)UMS continues to benefit from improving sentiment across the semiconductor sector as AI infrastructure spending remains strong. Recent earnings from Microsoft, Amazon and Palantir reinforce that hyperscalers are continuing to invest heavily in AI data centres, supporting long-term demand for semiconductor equipment.While near-term industry demand remains mixed, UMS is well-positioned through its close relationship with Applied Materials and its exposure to wafer fabrication equipment. The recovery in AI memory, advanced packaging and chip manufacturing should gradually support order momentum into 2027.

Key catalysts include AI data centre expansion, a recovery in WFE spending, strong AI-driven semiconductor equipment demand, improving customer orders and an attractive dividend yield.

UMS remains a quality semiconductor equipment play with solid fundamentals, healthy dividends, and long term AI exposure

$UMS(558.SG)UMS remains under pressure as semiconductor stocks continue to face selling after the Fed’s hawkish pause and rising Treasury yields. Weaker sentiment across the AI chip supply chain has weighed on the sector, even though the long-term demand outlook remains intact.

The recent pullback appears driven more by macro sentiment than company specific fundamentals. With AI infrastructure spending still expected to stay strong, attention now shifts to Amazon and Apple earnings, along with Friday’s Core PCE inflation data. Positive results or easing inflation could help stabilize semiconductor sentiment.

📈 Watching for signs of support rather than chasing weakness. If macro headwinds ease and AI demand remains resilient, quality semiconductor names like UMS could attract buyers again.

$UMS(558.SG)UMS Integration continues to benefit from long-term AI and semiconductor equipment demand, but recent weakness across global chip stocks has weighed on sentiment. With the stock trading near a key support zone, investors will be watching for signs of stabilization as the market digests semiconductor earnings.

📊 A sustained move above S$2.60 could signal renewed bullish momentum and pave the way toward S$2.80–2.90. However, if semiconductor selling persists, expect the stock to consolidate around current levels before the next move.

UMS offers a compelling combination of AI exposure, solid earnings potential, and lower volatility than many semiconductor peers. For long-term investors, the current pullback could present an attractive accumulation opportunity while keeping an eye on the broader chip