UWC's fourth-quarter net profit soars 85% from a year ago

UWC’s fourth-quarter net profit soars 85% from a year ago

PETALING JAYA: UWC Bhd’s net profit for the fourth quarter ended July 31 soared by 85.1% to RM18.65 million, from RM10.07 million in the same quarter of the previous year, attributed to improved manufacturing efficiencies, higher product value and lower expenses due to the absence of listing fees incurred previously.

Revenue stood at RM61.41 million, a 31% increase from RM46.91 million previously.

For the full financial year, the group posted a net profit of RM57.76 million, a 59.4% improvement from RM36.24 million in the previous financial year. Revenue rose by 51.7% to RM219.05 million, from RM144.35 million previously.

UWC has proposed an interim single tier dividend of 2 sen per ordinary shares amounting to RM11 million.

In its Bursa Malaysia filing, the group said it remains optimistic over its prospects ahead despite unfavourable economic conditions due to the Covid-19 pandemic disruption to the global supply chain and economic sentiment.

Citing data by US-based Semiconductor Equipment and Material International which projected a 13% growth in semiconductor test equipment for 2020 and a 13% growth in wafer fabrication equipment in 2021, UWC said its growth momentum will continue on the back of 5G demand.

Subsequently, it expects stronger demand for these testers in the quarters to come.

The group highlighted that the life science industry is also a catalyst to its growth plans with its involvement in the manufacturing of Covid-19 equipment.

On the whole, executive director and group CEO, Datuk Ng Chai Eng said, the results were proof of the group’s strategic execution of supply chain management to resolve shortages, due to the implementation of the movement control order.

“Moving forward, UWC maintains an optimistic outlook on the back of increased number of enquiries from existing and potential customers for both the semiconductor and life science industries. We will gradually move into the front-end semiconductor supply chain for better margins and the deployment of 5G as catalyst for growth.

“We will gradually move into the front-end semiconductor supply chain for better margins and the deployment of 5G as catalyst for growth,” he said.

source https://www.thesundaily.my/business/uwc-s-fourth-quarter-net-profit-soars-85-from-a-year-ago-DB3829746