UWC Q4 net profit soars on higher revenue


  • Corporate News
  • Friday, 04 Sep 2020

The company said the increase in earnings was due mainly to higher revenue generated from the group’s sheet metal fabrication and value-added assembly services segment, which contributed 93.1% of the total revenue.

PETALING JAYA: UWC Bhd’s net profit jumped 85% to RM18.6mil in the fourth quarter of its financial year ended July 31,2020 (FY20), from RM10mil in the corresponding quarter last year on higher revenue.

The company said the increase in earnings was due mainly to higher revenue generated from the group’s sheet metal fabrication and value-added assembly services segment, which contributed 93.1% of the total revenue.

UWC declared an interim dividend of two sen per share. For the quarter in review, Revenue grew 31% to RM61.4mil from RM46.9mil in the same period last year.

In a filing with Bursa Malaysia, it said the increase was mainly due to stronger demand from the group’s global customers in the semiconductor as well as life science industry.

For the cumulative period, UWC’s net profit rose 59.4% to RM57.8mil in FY20 from RM36.2mil in FY19, and its earnings per share rose to 10.50 sen from 9.88 sen.

The group’s revenue rose 51.8% to RM219.1mil in FY20 from RM144.4mil in FY19.

Despite the challenging economic conditions, UWC said it remained optimistic on its prospect for the year ahead, adding that it was expecting a stronger demand for its chip testers in the coming quarters.

It noted a recent data, released by US-based Semiconductor Equipment and Material International (SEMI), which suggested that the semiconductor test equipment is expected to grow by 13% in 2020 while the wafer fab equipment is expected to achieve a 13% growth in 2021.

“The growth momentum will continue on the back of 5G demand. Aligned with the data released by SEMI, the group has received higher orders for chip tester and flash memory test handler.

“The group is expecting a stronger demand for these testers for the quarters to come. In addition, UWC has secured front-end semiconductor equipment customers and managed to move into the front-end semiconductor supply chain, ” it added.

Meanwhile, the life science industry is another catalyst for the group.

“Since the group’s involvement in the manufacturing of Covid-19 equipment, the momentum of the equipment demand continues to be robust and has contributed significantly to the group’s order book, ” it said.

“As in our semiconductor business, the group is in the midst of developing new life science customers as part of its risk diversification strategy, ” it added.

The counter fell 14 sen yesterday to close at RM6.56.

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