An update on UWC’s latest quarter (4Q2021) results for the period 1 May to 31 July 2021. Our first article on UWC was published on 4 January 2021.

KEY SUMMARY

1. The Group recorded strong year-on-year growth in revenue and net profit of 30% ad 57%, respectively compared to FY2020. The improved results were due to growth across its 2 main business segments i.e. Semiconductor and Life science and medical technology.

2. The Group is optimistic and prepared to ride on the next growth story of the 5G, semiconductors, autonomous vehicles, life science, and medical technology industry.

3. The current valuation is on the high side of our estimate. Mr. Market has priced in high expectation on the Group for the next 1 year or so. Despite our optimism of the Group’s fundamentals and its prospects, we opine that current valuation provides a less favorable risk-reward ratio to new investors. Nevertheless, for existing shareholders, we advise staying invested.