- UMS (SGX:558) reported a weak 4Q22 NPAT of S$16.1m, 20% under consensus but in line with our estimate. We should see lower revenues for the next 6 months as components sales is projected by UMS to drop by 20-30% y-o-y.
- - Read this at SGinvestors.io -
- Maintain HOLD recommendation on UMS as we believe there is a chance for a rebound in 2H23 or FY24E if the ramp-up of the new customer goes well.
Slowdown in components sales
- - Read this at SGinvestors.io -
- Sales of integrated systems should remain flat, but the backlog has seen a significant reduction, signalling a big drop in new orders won. Gross margin should be lower as well at around 50% from 50%-plus previously.
Recovery of demand in 4Q23
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2023-03-01
Read also Maybank's most recent report:
2024-08-14 UMS - 2Q24 Disappoints; Outlook Still Muted.
Previous report by Maybank:
2024-05-13 UMS - Downgrade To SELL; Losing Market Share.
Price targets by 2 other brokers at UMS Target Prices.
Listing of research reports at UMS Analyst Reports.
Relevant links:
UMS Share Price History,
UMS Announcements,
UMS Dividends & Corporate Actions,
UMS News Articles
