- Downgrade UMS to SELL with a 46% lower target price of S$0.95, based on 15x 2024 EPS. UMS's 1Q24 earnings of S$10m (-44% y-o-y) were below expectations, meeting only 14% of our full-year estimate. Revenue fell 33% y-o-y due to softness in the semiconductor integrated systems and components businesses.
- - Read this at SGinvestors.io -
1Q24 earnings missed expectations; gross margin expanded due to change in product mix.
- UMS Holdings (SGX:558) reported 1Q24 earnings of S$10m (-44% y-o-y/-60% q-o-q) which were below expectations, meeting only 14% of our full-year estimate. UMS benefitted from improved gross margin which grew 2.9ppt y-o-y to 53.1% in 1Q24, mainly due to the change in product mix.
1Q24 revenue declined 33% y-o-y due to weaker semiconductor businesses.
- - Read this at SGinvestors.io -
UMS sees soft outlook in the near term; expects recovery in late-24.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
John Cheong UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-05-14
Previous report by UOB:
2024-02-20 UMS - Revenue Recovery & Positive Outlook Of Key Customer; Raise Target Price By 19%.
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
