UMS Integration - DBS Research 2024-11-11: 3Q24 Results Inline; Expecting Higher Contribution From New Customer

• UMS reported a 16.1% q-o-q improvement in 3Q24 revenue to S$64.9m, although still down 8.9% y-o-y. Net earnings grew 11.5% q-o-q but plunged 32.3% y-o-y to S$10.4m.

3Q24 results inline.

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• the Aerospace segment continued its positive trajectory, with revenue rising 44% y-o-y, driven by the ongoing recovery in the aerospace industry. 3Q24 and 9-month revenue and net earnings account for 26% of our forecasts, inline but below consensus estimates.

On a 9-month basis UMS's revenue and net earnings represent 70% and 74% respectively. The 3Q24 net margin of 16.0% was slightly lower than the 16.7% recorded in 2Q24. This was mainly due to an increase in depreciation expenses, legal and professional fees (especially for the group's secondary listing) and a forex loss.

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Semiconductor outlook improving.

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Lee Keng Ling DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-11-11 SGinvestors.io

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