UWC’s Q2 net profit doubles, aided by higher revenue and output utilisation

UWC Bhd’s net profit for its second quarter ended Jan 31, 2021 more than doubled to RM27.24 million from RM13.31 million reported for the same quarter of the previous year, driven by higher revenue, increased production utilisation, as well as effective operations and cost management.

Revenue for the quarter stood at RM77.81 million, up 41.6% from RM54.94 million reported previously.

For the six month period, the group’s net profit jumped 99.6% to RM48.95 million from RM24.53 million reported previously. Revenue also rose 46.6% to RM149.31 million from RM101.85 million registered previously.

According to its Bursa disclosure, the group continues to maintain an optimistic outlook over its prospects despite the disruption from the various movement control orders.

It said this is due to its business in the semiconductor and life science industries which is expected to continue growing, spurred by strong fundamentals and an increase in the total addressable market, as exhibited by the increase in UWC’s order book.

“Moving forward, with UWC’s foray in front-end and automated test equipment customers to grow our business segments, the group has successfully moved up the semiconductor value chain into technology devices and equipment supply sector by undertaking the manufacturing of front-end semiconductor equipment, automated test equipment and 5G test equipment,” it said in its exchange filing.

It also expects mass production of autonomous vehicle reliability chip testers to start by the end of the second half this year.