UWC posts RM13.3mil profit in second quarter


  • Corporate News
  • Friday, 06 Mar 2020

UWC said that the group’s revenue was principally derived from the its sheet metal fabrication and value-added assembly services segment, which contributed approximately 91.6% of the total revenue.

KUALA LUMPUR: UWC Bhd, an integrated engineering support services provider, recorded a net profit of RM13.31mil on the back of revenue of RM54.94mil for its second quarter to Jan 31,2020. Earnings per share stood at 3.63 sen.

There were no comparative figures. The profit and revenue came from the group’s global semiconductor industry customers as well as life science customers.

For the six-month period, UWC recorded a net profit of RM24.53mil on the back of revenue of RM101.85mil.

Earnings per share for the cumulative period stood at 6.69 sen.

In a stock exchange filing to Bursa Malaysia, UWC said that the group’s revenue was principally derived from the its sheet metal fabrication and value-added assembly services segment, which contributed approximately 91.6% of the total revenue.

These specialised services deliver one stop strategic solutions to clients, from piece parts up to full assembly of products.

In a press release, UWC said that the sterling performance was attributed to the stronger demand from its semiconductor customers especially for UWC’s test equipment. In addition, there was also growth in demand from the life science industry customers.

UWC’s robust balance sheet improved further given the capital injection from its recent initial public offering exercise.

Following the purchase of new machinery and equipment, its net cash position remained strong at RM31.1mil with a current ratio of 3.9 times as at Jan 31 2020.

Looking ahead, UWC said that the semiconductor industry’s outlook for 2020 remains positive.

The projections made by SEMI also indicated growth for the industry despite the ongoing trade tension between the two largest economies in the world.

“The Penang state recorded the highest approved manufacturing investments during the period from January 2019 to September 2019 and this was the highest since 2009.

“The majority of the investments were channelled to the semiconductor as well as scientific measurement industry where the group’s strength lies as an integrated engineering service support provider for the said industries.”

In line with the semiconductor growing trend, including applications for Internet of Things (IoT), 5G, automotive, augmented/virtual Reality and AI, the group is optimistic of capitalising and benefiting from these potential initiatives, mainly the anticipated 5G rollout and Industrial IoT adoption.

The group also has a strategic plan to migrate to Industry 4.0 through increasing automation adoption for its existing and new production lines that will provide the highest machine production to time ratio.

“Moving forward, we will continuously strengthen our position as an end to end solutions provider for our clients.

“The additional machines that will dock in the factory in the coming quarter is expected to enhance our (manufacturing) efficiency. We will definitely utilise the new machines’ capabilities to develop new products and prototype together with our existing and new customers, ” the company said.

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