3Q25 revenue fell 9% y-o-y due to lower semiconductor integrated system sales. UMS's proposed a 1 for 4 bonus issue to reward shareholders.
UMS remains positive, as production for new customer has picked up and it expects shipments to improve gradually. Maintain BUY with a 4% lower target price of S$1.66 (S$1.73 previously).
3Q25 results below expectations due to slower-than-expected shipments.
- Read this at SGinvestors.io -
Gross margin improved 4ppt y-o-y in 3Q25 due to a change in its product mix and increased productivity.
3Q25 revenue fell 9% y-o-y due to softer demand for semiconductor.
- Read this at SGinvestors.io -
Geographically, key markets delivered a mixed performance as Malaysia, Taiwan and other countries recorded higher sales while the US and Singapore posted lower sales. Revenue in Singapore fell 21% y-o-y mainly due to lower overall semiconductor sales while revenue in the US plunged 33% on the back of lower semiconductor component sales. Sales in Malaysia surged 71% y-o-y as UMS commenced business with its new major customer while revenue in other countries jumped 99% as shipments were made to the new major customer’s plant in Korea.
UMS remains positive about its prospects.
Read more at SGinvestors.io.
Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
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