UMS Integration (558) Q3 2024 earnings summary

Executive summary

• Revenue for 3Q2024 declined 9% year-over-year to S$64.9 million, but increased 16.1% sequentially from 2Q2024, with sales resuming quarterly growth since 1Q2024.

• Net profit for 3Q2024 fell 33% year-over-year to S$10.3 million, while pre-tax profit dropped 32% to S$11.9 million.

• Gross material margin improved to 51.7% in 3Q2024 from 51.2% in 3Q2023, and to 52.8% for 9M2024 from 49.2% in 9M2023.

• The Group's financial position strengthened, with net cash increasing by S$28.1 million to S$73 million as of September 2024.

• Interim dividend of 1.0 cent per share declared for 3Q2024, payable on 16 December 2024.

Financial highlights

• 3Q2024 revenue: S$64.9 million (-9% year-over-year); 9M2024 revenue: S$174.9 million (-23% year-over-year).

• 3Q2024 net profit: S$10.3 million (-33% year-over-year); 9M2024 net profit: S$29.8 million (-34% year-over-year).

• Finance income rose 70% in 3Q2024 and 117% in 9M2024 due to higher cash balances from share placement and lower bank borrowings.

• Net cash from operating activities: S$16.8 million in 3Q2024 (vs S$3.5 million in 3Q2023); S$31.2 million in 9M2024 (vs S$48.6 million in 9M2023).

• Free cash flow: S$8.8 million in 3Q2024 (vs -S$6.1 million in 3Q2023); S$8.1 million in 9M2024 (vs S$27.3 million in 9M2023).

Outlook and guidance

• Group expects to remain profitable in FY2024, with continued quarter-on-quarter growth in sales and earnings since 1Q2024.

• Semiconductor and aerospace segments are expected to benefit from global industry growth, including increased demand for AI chips and post-COVID air travel recovery.

• New major customer in Malaysia driving order growth, with more new product introductions expected.

• Secondary listing on Bursa Malaysia Securities Berhad underway to unlock shareholder value and support growth.