UMS - UOB Kay Hian 2024-05-14: 1Q24 Earnings Miss Expectations, Expect Near-Term Softness; Downgrade To SELL

UMS - 1Q24 Earnings Miss Expectations, Expect Near-Term Softness; Downgrade To SELL

Published:
UMS (SGX:558) | SGinvestors.ioUMS (SGX:558)
  • 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 an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.



John Cheong UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-05-14



Read also UOB's most recent report:
2024-08-14 UMS - 2Q24 Earnings Below Expectations Due To Forex; Slow Ramp-up Of New Customer.

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






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