UMS - UOB Kay Hian 2023-03-02: 2022 Below Expectations; Expect A Softer Near-Term Outlook; Maintain HOLD

• UMS has turned cautious in its outlook; it expects near-term demand to soften as global chip demand is expected to ease since customers are turning more cautious in the face of an economic slowdown and rising inflation.
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• UMS's 2022 earnings of S$98m (+85% y-o-y) missed our estimate slightly by 3%. Revenue grew 37% y-o-y as UMS benefitted from solid expansion of wafer fabs worldwide.

2022 earnings missed slightly due to forex loss.

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• The strong earnings growth was mainly driven by UMS's strong revenue growth of 37% y-o-y from the strong performances of its semiconductor integrated system and component sales, as well as an S$11.5m reversal of tax provision made by its Malaysian subsidiary after the resolution of its pioneer tax incentives with the Malaysian government.

Robust revenue growth across all sectors from strong expansion of global wafer fabs.

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Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2024-08-14 UMS - 2Q24 Earnings Below Expectations Due To Forex; Slow Ramp-up Of New Customer.

Previous report by UOB:
2024-05-14 UMS - 1Q24 Earnings Miss Expectations, Expect Near-Term Softness; Downgrade To SELL.

Price targets by other brokers at UMS Target Prices.

Listing of research reports at UMS Analyst Reports.

Relevant links:
UMS Share Price History,
UMS Announcements,
UMS Dividend Payout Dates & Corporate Actions,
UMS News