UMS Integration (558) Q2 2024 earnings summary

Executive summary

• Revenue for 1HFY2024 was S$109.9 million, down 29% year-over-year, with net attributable profit at S$19.1 million, a 34% decline from 1HFY2023.

• All core business segments saw quarter-on-quarter sales improvement, with Aerospace up 24% and Semiconductor up 1% in 2QFY2024.

• Net cash increased by S$29.9 million to S$74.9 million as of June 2024, mainly from a share placement and operating cash flow.

• Proposed second interim dividend of 1.0 cent per share, totaling 2.2 cents for 1HFY2024.

Financial highlights

• 2QFY2024 revenue fell 25% year-over-year to S$56 million but rose 3.7% sequentially from 1QFY2024.

• Gross material margin improved to 53.3% in 1HFY2024 from 48.3% in 1HFY2023.

• Group pre-tax profit dropped 34% to S$22.1 million, and net profit declined 35% to S$19.5 million year-over-year.

• Finance income surged 164% to S$1.1 million in 1HFY2024 due to higher cash balances from share placement.

• Free cash flow for 1HFY2024 was negative S$0.8 million, down from positive S$33.4 million in 1HFY2023.

Outlook and guidance

• Management expects to remain profitable in FY2024, supported by semiconductor sector recovery and aviation growth.

• Global semiconductor equipment sales are forecast to reach US$109 billion in 2024, with further growth in 2025.

• The Group plans a secondary listing on Bursa Malaysia to broaden investor base and support future growth.