- UMS expects market uncertainties to persist and only foresees marginal earnings improvement in 2H24 due to a slower-than-expected ramp-up of its new customer. Maintain SELL and target price of S$0.90, based on 15x 2024 EPS.
2Q24 earnings missed expectations due to absence of forex gain.
- - Read this at SGinvestors.io -
- UMS benefitted from improved gross margin which grew 2.9pt y-o-y to 53.1% in 1Q24 mainly due to a change in product mix.
2Q24 revenue declined 26% y-o-y due to the weaker semiconductor segment.
- UMS’s semiconductor sales fell 29% y-o-y. The weaker semiconductor performance was due to weaker global chip demand. Semiconductor integrated system sales dropped 39% y-o-y to S$21m in 2Q24 while component sales declined 18% y-o-y to S$25m.
- - Read this at SGinvestors.io -
Expects market uncertainties to continue, ramp-up of new customer is slower-than-expected
- 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/ 2024-08-14
Previous report by UOB:
2024-05-14 UMS - 1Q24 Earnings Miss Expectations, Expect Near-Term Softness; Downgrade To SELL.
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
