- 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.
