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

• 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 an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.

Read also Maybank's most recent report:
2024-08-14 UMS - 2Q24 Disappoints; Outlook Still Muted.

Price targets by other brokers at UMS Target Prices.

Listing of research reports at UMS Analyst Reports.

Relevant links:
UMS Share Price History,
UMS Announcements,
UMS Dividend Payout Dates & Corporate Actions,
UMS News