- From our channel checks as well as the negative outlook released by several key semi-players like LAM Research, Samsung and Intel, we think a slowdown for UMS (SGX:558) is unavoidable.
- We now expect a weak 4Q22E and 1H23E for UMS due to delay/slowdown in orders from its key customer. We also expect the decline in US$ to impact UMS's earnings. As a result, we lower our FY22E & FY23E PATMI estimates for UMS by 3.8% and 9.6%, resulting in a lower target price of S$1.33 (from S$1.47) pegged to an unchanged 8.5x FY23E P/E.
- - Read this at SGinvestors.io -
Weak 4Q22E and 1H23E for UMS
- - Read this at SGinvestors.io -
- We also expect 1H23E to be weaker due to the broader sector slowdown and impact of the weakening US$ on UMS’s receivables.
- However, the ramp-up of its new factory and new customer will be instrumental for its financial performance and we see strong potential for a 2H23E recovery.
Attractive yield of 4.6% for FY23E
- Read more at SGinvestors.io.
