- 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.
- - Read this at SGinvestors.io -
- 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.
- - Read this at SGinvestors.io -
- 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.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Lee Keng LING DBS Group Research | https://www.dbs.com/insightsdirect/ 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
