- We downgrade UMS (SGX:558) to SELL with a lower target price of S$0.88 as earnings in the near term are likely to remain weak and UMS is losing market share with its existing customer. UMS’s 1Q24 revenue dropped 33% y-o-y to S$54m while PATMI sank 44% y-o-y to S$9.8m.
Near-term outlook gloomy
- - Read this at SGinvestors.io -
Weak 1Q24; 2Q24E also likely to be as weak
- - Read this at SGinvestors.io -
- Semicon integrated systems was the main underperformance as UMS’s revenue sank 48% y-o-y to S$21.4m in 1Q24.
- Going forward, UMS's management also expects 2Q24E to be weak, similar to 1Q24 and FY24E is likely to be a weaker year than FY23.
New customer expectations remain unchanged
- 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://www.maybanktrade.com.sg/.
Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2024-05-13
Previous report by Maybank:
2024-02-29 UMS - Better To Wait & See; Downgrade To HOLD.
Price targets by 2 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
