UMS Integration (558) Q4 2024 earnings summary

Executive summary

• Net attributable profit for FY2024 was S$40.6 million on revenue of S$242.1 million, with Q4 net profit up 6.6% quarter-over-quarter to S$11.1 million.

• FY2024 revenue declined 19% year-over-year, mainly due to lower semiconductor and distribution sales, partially offset by a 16% rise in aerospace sales.

• Positive net cash from operations and free cash flow were generated in Q4 and FY2024, supporting a final dividend of 2 cents per share.

Financial highlights

• Q4FY2024 revenue fell 9% year-over-year to S$67.2 million but rose 4% sequentially from Q3.

• FY2024 net profit before tax dropped 32% to S$46.8 million; net profit and net attributable profit also fell 32%.

• Gross material margin for FY2024 improved to 51% from 50.1% in FY2023.

• Earnings per share softened to 5.74 cents in FY2024 from 8.95 cents in FY2023.

Outlook and guidance

• New Penang facility is operational, ramping up production for a major customer, with strong order flow expected.

• Both major semiconductor customers provided positive outlooks for 2025, supported by global AI investment and demand.

• Aerospace segment expected to benefit from record global air travel and industry revenue growth in 2025.

• The group expects to remain profitable in FY2025 barring unforeseen circumstances.