UMS Integration (558) Q3 2024 earnings summary

Executive summary

• Revenue for 3Q2024 was S$64.9 million, down 9% year-over-year but up 16.1% sequentially, with sales resuming quarterly growth since 1Q2024.

• Net profit for 3Q2024 was S$10.3 million, down 33% year-over-year but up 11.5% quarter-on-quarter; nine-month net profit fell 33% to S$29.5 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.

• Net cash increased by S$28.1 million to S$73 million as of September 2024, mainly from a S$49.9 million share placement.

• Interim dividend of 1.0 cent per share declared for 3Q2024, totaling 3.2 cents for the nine months, 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).

• Earnings per share for 3Q2024: 1.46 cents (vs 2.29 cents in 3Q2023); 9M2024: 4.18 cents (vs 6.61 cents in 9M2023).

• Net asset value per share: 59.11 cents as of 30 Sep 2024 (vs 53.69 cents as of 31 Dec 2023).

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

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.

• Positive guidance from key semiconductor equipment customers and global supply chain investments support a brighter outlook.