UMS - CGS-CIMB Research 2022-05-11: No Slowdown Seen In FY22F

UMS - No Slowdown Seen In FY22F

  • Despite the higher effective tax rate of 18.6% in 1Q22 (1Q21:10.4%), UMS (SGX:558)'s 1Q22 net profit rose 26% y-o-y to S$19.4m in 1Q22. Pre-tax profit jumped 51.0% y-o-y to S$25.4m in 1Q22 (1Q21:S$16.8m). 1Q22 revenue was above expectations at 28.5%/26.7% of our/Bloomberg consensus full-year forecast.
  • We raise our FY22-24F revenue forecasts for by 9.6-9.7% given UMS’s strong order book. To factor in inflationary cost pressure, we adjust gross material margin dow n to 51.4% in FY22-24F. We also use 1Q22 effective tax rate as a guide and revised our FY22-24F effective tax rate assumption to 18.6%.
  • UMS has engaged a tax consultant to help resolve the tax issue (inability to meet pioneer tax incentive condition) with the Malaysian authorities.
  • Our target price for UMS remains at S$1.63, based on a target P/E of 14.45x on our FY23F EPS forecast.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

William TNG CFA CGS-CIMB Research | 2022-05-11
SGX Stock Analyst Report ADD MAINTAIN ADD 1.630 SAME 1.630

Previous report by CGS-CIMB:
2022-03-02 UMS - A Taxing Issue

Target prices by 4 other brokers at UMS Target Prices.
Listing of broker reports at UMS Analyst Report.

Relevant links:
UMS Share Price History,
UMS Announcements,
UMS Dividends & Corp Actions,
UMS News Articles


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