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

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

Read also Maybank's most recent report:
2025-11-11 UMS Integration - Outlook Improving.

Previous report by Maybank:
2025-08-13 UMS Integration - A Better 2H25.

Price targets by 3 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