- UMS (SGX:558)'s FY23 NPAT slightly missed our S$62m expectation at S$60m but delivered q-o-q improvement. A 10% higher final dividend of S$0.022 was declared. See UMS's dividend dates.
- - Read this at SGinvestors.io -
A weaker-than-expected recovery
- UMS's FY23 revenue fell 19% y-o-y to S$300m while PATMI decreased 39% y-o-y to S$60m due to a slowdown in the semi-con sector. 4Q23 improved marginally q-o-q but that was due to some pull in orders slated for 1Q24.
- - Read this at SGinvestors.io -
New customer expectations remain unchanged
- UMS still expects a US$30m revenue contribution from its new customer in FY24. Its new production facilities in Penang are completed and one of the new factories is now operational. As it has started production for its new customer, management expects an uptick in order flow in coming months.
- We see potential upside to the S$30m contribution in FY24E if the semi-con sector picks up in 2H24E.
Downgrade to HOLD, target price trimmed
- Read more at SGinvestors.io.
