Shares of UMS Integration (558.SI) surged 3.38% during Monday's intraday trading session, following a positive analyst report from RHB Research. The semiconductor component manufacturer's stock climbed on the back of newly initiated coverage, which highlights the company's strong growth potential in the semiconductor industry.

RHB Research analyst Alfie Yeo initiated coverage on UMS Integration with a buy rating, citing several growth drivers for the short to medium term. These include an anticipated increase in semiconductor equipment spending, a ramp-up in new client orders, and potential margin expansion. The company, which specializes in manufacturing high-precision front-end semiconductor components, is well-positioned to capitalize on these industry trends.

Looking at the long-term prospects, the analyst views UMS Integration as a key beneficiary of the semiconductor sector's overall growth. This growth is expected to be driven by factors such as advancements in leading-edge logic and memory technologies, as well as ongoing investments in capacity expansion throughout the industry. RHB Research has set a target price of S$1.85 for UMS Integration, suggesting significant upside potential from its current trading price.