UWC reports lower earnings for 2Q


KUALA LUMPUR: UWC Bhd’s net profit fell 8% to RM25.1mil in the second quarter ended Jan 31, 2022 (2Q22) from RM27.24mil a year ago.

The integrated engineering supporting services provider said the lower profit was due to higher depreciation expenses and higher staff costs incurred in the current quarter as compared to the corresponding period in the previous financial year as a result of substantial capital investment and also increase in headcount in relation to our corporate expansion plan.

Its revenue for the quarter stood at RM79.9mil, up 2.7% from RM77.8mil a year prior, mainly due to the continued demand from the group’s global customers in the semiconductor and life science and medical technology industry.

In the first six months to Jan 31, 2022, UWC posted a net profit of RM48.12mil on revenue of RM155.17mil.

Its net cash stands at RM59.3mil, with a current ratio of 5.14 times.

Executive director and group CEO Datuk Ng Chai Eng said its order for semiconductor, life science and 5G related products remained robust with continuous replenishment of its order books.

“The group has since transitioned into the higher end value chain, shifting focus on to front-end semiconductor, autonomous chip testers, 5G testers and V2V testers.

“Looking ahead, the 5G testers will soon begin mass production followed by the ramping up of autonomous vehicle chip testers in the coming years,” Ng said.

Moving on to life science, Ng said the outlook remained bright as the demand for quality healthcare has been on the rise given the ongoing battle with the pandemic which has intensified.

UWC is also exploring the possibility of securing full box build jobs and more project transfers within this business segment.

“As we relentlessly continue to shape our business to better suit the demands of the future as well as expedite our growth, we believe in prioritising quality business expansions.

“So, as part of our efforts to overcome the capacity constraints, we recently acquired a 12-acre leasehold land strategically located in Batu Kawan Industrial Park which is expected to be completed within the next three years.

“Furthermore, we have incorporated USurface Technology Sdn. Bhd. and C Max Manufacturing Sdn Bhd back in February to further expand and diversify the group’s business,” Ng said.

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