Unisem’s 1H18 results in line, stronger quarters ahead

KUCHING: Unisem ( M) Bhd’s ( Unisem) first half of 2018 (1H18) results were generally in line with analysts’ expectations given that the third quarter (3Q) and 4Q will typically see better earnings.

In a filing on Bursa Malaysia, Unisem revealed that the group recorded revenue and net profit of RM343.198 million and RM31.075 million respectively for the 2Q ended June 30, 2018 ( 2Q18), representing declines in revenue and net profit of 6.2 per cent and 26.9 per cent respectively against the corresponding quarter ended June 30, 2017.

“For the six months period ended June 30, 2018, the group recorded revenue and net profit of RM664.749 million and RM37.4 million respectively.

“These represent decreases of 8.4 per cent in revenue and 57.4 per cent drop in net profit as compared to the same period a year ago,” the group said.

The research arm of Kenanga Investment Bank Bhd ( Kenanga Research) deemed the results to be within expectations as typically the financial 3Q and 4Q will see better earnings on higher seasonal ramp-up amid new flagship Smartphone launching.

Kenanga Research note that over the past three years, sixmonth core net profit (CNP) made up only 33 per cent- 54 per cent of full-year numbers.

“That said, the interim dividend per share ( DPS) of 2.5 sen was a miss from our expected 3.5 sen,” it said.

Meanwhile, overall 1H18 results were broadly in line with Affin Hwang Investment Bank Bhd’s (Affin Hwang) current year 2018 estimate (CY18E) expectations of RM83 million but noted that “they look weak compared to street’s full-year forecast of RM107 million”.