Though UMS (SGX:558)'s 3Q23 results were below expectations, it was still a strong performance and 2H23 recovery remains intact. UMS reported a 3Q23 revenue of S$71.3m, down 28.8% y-o-y. The quarterly decline in revenue narrowed to 4.2%, from a decline of 7.9% in 2Q23 and 20% in 1Q23.
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This was partially lifted by a better performance from its aerospace business, which saw revenue jumping 35% y-o-y to S$5.2m, buoyed by the sustained recovery of the global aerospace industry.
3Q23 net profit plunged 64% y-o-y to S$15.3, partly due to the tax writeback in 3Q22.
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On a 9M23 basis, revenue of S$226.4m fell 17% y-o-y, while net profit was down 46% to S$44.3m.
Overall, UMS's 3Q23/9M23 net profit accounted for 23%/65% of our forecast, below expectations.
An interim dividend of S$0.012 (similar to 2Q23 but higher than the 1cents in 3Q22) was declared. See UMS's dividend dates.
Improving margins, partly due to the renewal of its contract with its key customer.
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
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