- We expect UMS (SGX:558) to report a stronger 4Q23E, with revenue and PATMI of S$80m and S$18m, aided by higher y-o-y margins from the renewed agreement with its key customer.
Brighter outlook
- - Read this at SGinvestors.io -
- UMS also raised about S$50m through a 40m share placement at S$1.29, which was 2.55x oversubscribed and will provide ample cash for expansion. See UMS's announcements dated 1 Feb 2024.
Higher margins due to new contract terms
- - Read this at SGinvestors.io -
- With the semi-con sector seeing only a gradual recovery amid high inventory levels, we expect higher ASPs to aid UMS in the short term, and especially in 4Q23E (results due on end Feb).
New customer to ramp up in FY24E
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://maybanktrade.com.sg/.
Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2024-02-05
Read also Maybank's most recent report:
2024-02-29 UMS - Better To Wait & See; Downgrade To HOLD.
Price targets by 3 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
