UMS Holdings - UOB Kay Hian 2023-08-16: 2Q23 Below Expectation But Optimistic Outlook Ahead; Upgrade To BUY

UMS Holdings - 2Q23 Below Expectation But Optimistic Outlook Ahead; Upgrade To BUY

Published:
UMS (SGX:558) | SGinvestors.ioUMS (SGX:558)
  • UMS's 2Q23 earnings of S$12m (-20% y-o-y) was below expectations, with 1H23 earnings forming 39% of our full-year estimate. 2Q23 revenue fell 14% y-o-y due to a decline in the semiconductor and others segments.
  • - Read this at SGinvestors.io -
  • Upgrade UMS to BUY and raise target price by 28% to S$1.24.

2Q23 earnings below expectation.

  • UMS Holdings (SGX:558)’s 2Q23 revenue fell 20% y-o-y due to a 14% decline in the semiconductor segment and 56% decline in the others segment due to a slowdown in the material distribution system.
  • - Read this at SGinvestors.io -
  • Revenue in the semiconductor segment fell 14% as global semiconductor demand remained soft while revenue in the others segment plunged 48% mainly due to the weaker material and tooling distribution business being affected by the general business slowdown. The decline in semiconductor revenue was due to a 29% drop in component sales (from S$44m in 2Q22 to S$31m in 2Q23) caused mainly by the weaker demand from back-end semiconductor customers.
  • UMS's Semiconductor Integrated System sales continued to do well, increasing 6% from S$32m in 2Q22 to S$34m in 223. All the key geographical markets posted lower sales in 2023, except for Taiwan which reported 2% sales improvement due mainly to higher component spares sales.
    • Read more at SGinvestors.io.




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




    John Cheong UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-08-16



    Read also UOB's most recent report:
    2023-09-18 UMS - Well-Positioned For Semiconductor Industry Recovery & Boost From New Customer.

    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





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