UMS - Maybank Research 2024-05-13: Downgrade To SELL; Losing Market Share

UMS - Downgrade To SELL; Losing Market Share

UMS (SGX:558) | SGinvestors.ioUMS (SGX:558)
  • 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

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Weak 1Q24; 2Q24E also likely to be as weak

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  • 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

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Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @

Jarick Seet Maybank Research | 2024-05-13

Previous report by Maybank:
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


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