UMS Holdings - DBS Research 2024-02-29: Outlook Rosy On Multiple Fronts

UMS Holdings - Outlook Rosy On Multiple Fronts

UMS (SGX:558) | SGinvestors.ioUMS (SGX:558)
  • UMS (SGX:558)'s 4Q23 revenue declined 27% y-o-y to S$73.5m but improved 3% q-o-q, mainly lifted by a stronger performance of its aerospace business.

4Q23 semiconductor revenue weaker y-o-y; aerospace segment did well.

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  • Within the semiconductor segment, integrated system sales, which accounts for 53% of total semiconductor revenue, dropped 31% y-o-y, with the balance from component sales, which saw a 27% y-o-y decline.

Margins improving, overall results still in line.

  • Gross margin improved to 52.8% in 4Q23 (from 46.5% in 4Q22 and 51.2% in 3Q23) due to the renewal of its integrated system contract and reversal of inventory provisions.
  • With cost cutting measures in place, UMS's net profit eased by a smaller 2.9% y-o-y, and saw a 2.2% q-o-q improvement from 3Q23 to S$15.7m.
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  • A dividend of 2.2 cents was declared, up from 2 cents previously. Total DPS for FY23 worked out to 5.6 cents. (vs 5 cents in FY22).

New plant to commence production for new customer in March 2024; expect growing order momentum in coming months.

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Lee Keng LING DBS Group Research | 2024-02-29

Previous report by DBS:
2023-11-14 UMS - 2H23 Recovery Intact; Stronger 2024 Expected.

Price targets by 4 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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