UMS - CGS-CIMB Research 2023-08-17: Passed The Bottom

• Our last published note on UMS (SGX:558) was on 14 Nov 2022: UMS - 3Q22 A New Record. In this note, we update our view, revise our FY23-24F forecasts and introduce our FY25F forecast for the company.
• - Read this at SGinvestors.io -

UMS’s results commentary suggests a 2Q23 bottom

• In its 1H23 results release, UMS guided that:
  1. - Read this at SGinvestors.io -
  2. it has renewed its Integrated System contract with this key customer till end-FY25;
  3. it has received an in-principle agreement with a new semicon customer for a 3-year contract with a renewal option;
  4. its expansion plans are on track with its new Penang facilities scheduled to start volume production in Sep 2023;
  5. its new customer could provide at least US$30m in revenue for FY24F.
  6. it has also reported better revenue performance in its aerospace segment (1H23: +45% y-o-y to S$10.1m) and is optimistic that there will be growth opportunities as the global aviation industry recovers following the return of air travel post the COVID-19 pandemic.

Reiterate ADD

• Read more at SGinvestors.io.

William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2023-08-17 SGinvestors.io

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