UMS Integration - Maybank Research 2024-11-12: 3Q Disappoints But Outlook Improves; Upgrade To HOLD

UMS Integration - 3Q Disappoints But Outlook Improves; Upgrade To HOLD

Published:
UMS (SGX:558) | SGinvestors.io
  • The outlook is still cloudy, but we upgrade UMS Integration (SGX:558) to HOLD as earnings have likely bottomed.
  • UMS’s 3Q24 PATMI of S$10.4m was below our and consensus estimates despite better q-o-q.
  • - Read this at SGinvestors.io -

3Q24 stronger, q-o-q but not enough

  • UMS's 3Q24 revenue declined 9% y-o-y to S$65m, while PATMI fell 32% y-o-y to S$10.4m (it was also weaker q-o-q). This was due to lower revenue from integrated systems, which fell 19% y-o-y, as demand from its key customer dropped.
  • - Read this at SGinvestors.io -

New customer starts production

  • Malaysia revenue grew 81.7% q-o-q to S$4.6m, mainly due to the commencement of mass production for its new customer.
  • While UMS is still facing ramp-up issues due to labour shortages and qualification for certain products, we see this as a positive and things should improve, albeit at a slower pace than initially expected.

Earnings revision

  • Read more at SGinvestors.io.




Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.




Jarick Seet Maybank Research | https://www.maybank.com/ 2024-11-12



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





Advertisement

You May Also Like




SGX Stock / REIT Search

Advertisement

Most Read

Trust Bank God Of Fortune Referral Code PGKPSWAE Trust Bank Referral Code 🎁

Advertisement