UMS - Maybank Research 2023-09-25: Brighter Prospects As Key Client Raises Guidance; Upgrade To BUY

• UMS’ key customer Applied Material (AMAT) raised its 4Q23 revenue and profit guidance recently. UMS should benefit as AMAT’s inventory levels should be depleted at a faster rate, increasing the chances of a rebound in components orders in FY24E.
• - Read this at SGinvestors.io -
• UMS’ performance in FY23E has been dismal due to fewer orders. Given better prospects, we upgrade UMS to BUY from HOLD, based on a higher 11x FY24E P/E (from 9x), resulting in a higher target price of S$1.44.

2H23 likely to be weak, similar to 1H23

• - Read this at SGinvestors.io -
• We expect 2H23 to remain equally weak as its key customer is unlikely to ramp up orders this year.

Benefiting from the ramp-up of a new customer

• Read more at SGinvestors.io.

Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.

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 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