Unisem shares fall over 3% after profit slumps

KUALA LUMPUR: Unisem (M) Bhd’s fall in early trading on Friday after it posted a 26% fall in profit for the second quarter.

The semiconductor manufacturer fall 3.09%, or eight sen to RM2.51. Unisem-C1- fell 6.9%, or one sen to 13.5 sen.

Unisem’s net profit for the second quarter ended June 30, 2018 (2QFY18) slipped 26% year-on-year (y-o-y) to RM31.14mil from RM42.09mil, primarily attributable to the depreciation of USD/MYR exchange rates as compared to the prevailing rates in the previous year.

Unisem said the lower earnings for the period were further impacted by the lower profit margins arising from change in its product mix.

Its cumulative six months earnings stood at RM37.2mil on revenue of RM664.74mil.

Analysts said Unisem latest quarterly results came in broadly within expectations.

CGS-CIMB Research said Unisem’s 1H18 earnings were broadly in line at 34%/35% of its/consensus FY18 forecasts respectively.

“We expect a stronger 2H18F, driven by favourable forex and new product portfolio. 2Q18 core net profit rose 32% quarter-on-quarter, driven by higher utilisation and favourable forex.

“We are excited over its new piezoelectric microphone assembly programme, which is slated to commence in 3Q18. This will be a new growth driver for the group,” it said.

The research house has maintained its “add” with a higher target price of RM2.80.

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