Singapore Stock Market News

UMS Holdings Ltd - Not time yet

StockFanatic
Publish date: Tue, 03 Mar 2015, 12:19 PM
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FY14 core net profit was below at 92% of our full-year forecast (no consensus). This was due to a larger decline in 4Q sales and the associated drop in margin. Final DPS was 3 Scts (2 Scts ordinary and 1 Scts special). The company expects activity to pick up in 1H15 as there could be stronger demand for "new" components, which may yield better margins. Its balance sheet remains strong (net cash position with zero debt) while capex needs seem limited. We fine-tune our FY15-16 forecasts and introduce FY17 forecasts. At 1.19x CY15 P/BV, (high-end of last earnings upcycle) our target price dips to S$0.55. Maintain Hold. Re-rating could come from an earlier-than-expected recovery in customer demand.
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