Seet believes UMS’ 2HFY2023 is likely to be similar to its first half performance, during which revenue dropped by 9% y-o-y to $155.1 million and patmi declined 27% y-o-y to $29 million. This came as a result of weaker gross margins which edged down to 46.3% from 51.7% in 2QFY2022, mainly due to the weaker US Dollar and lower machine utilisation rates.
Maybank Research analyst Jarick Seet has maintained his “hold” call on “fairly valued” UMS Holdings (SGX:558
) , although he has increased his target price to $1.16, up from 94 cents previously.
In his report dated Aug 15, Seet notes that UMS reported a weak 1HFY2023 ended June, with a patmi of $29 million that came in below estimates. He expects the company’s 2HFY2023 to remain “equally weak”, as orders are not expected to ramp up from key customers in 2023.
