UMS Integration (558) Q4 2024 earnings summary

Executive summary

• FY2024 revenue declined 19% year-over-year to S$242.1 million, mainly due to a 21% drop in semiconductor and 35% drop in Others segment, partially offset by 16% growth in Aerospace.

• Net profit fell 32% year-over-year to S$41.6 million, with net profit attributable to shareholders at S$40.6 million.

• Group maintained profitability and positive operating cash flow despite inflation, geopolitical tensions, and market uncertainties.

Financial highlights

• 4Q2024 revenue decreased 9% year-over-year to S$67.2 million, but rose 4% sequentially from 3Q2024.

• Gross material margin for FY2024 improved to 51.0% from 50.1% in FY2023.

• Net cash from operating activities was S$56.4 million for FY2024, down from S$79.8 million in FY2023.

• Cash and cash equivalents increased to S$79.9 million at year-end, up from S$67.5 million.

• Final dividend of 2.0 cents per share proposed, subject to approval.

Outlook and guidance

• Group expects to remain profitable in FY2025, supported by strong order flow and new product introductions.

• Semiconductor industry outlook is positive, with 18 new fabs expected to start construction in 2025 and double-digit market growth projected.

• Aerospace segment expected to benefit from record global air travel demand and industry revenues surpassing US$1 trillion.

• Group will continue investments in key segments and maintain prudent risk management.