KUALA LUMPUR (June 20): UWC Bhd, which provides metal fabrication and value-added assembly services to the semiconductor industry, has posted its lowest quarterly earnings since its Main Market debut in July 2019, with a net profit of RM4.72 million for the third quarter ended April 30, 2023 (3QFY2023).

The latest quarterly profit is down by 83.55% from the RM28.71 million it posted a year ago, as revenue almost halved to RM47.74 million — its lowest since 1QFY2020 — from RM87.32 million previously to due to macroeconomic headwinds, "especially semiconductor market cyclical downturn", the group's bourse filing showed.

Earnings per share fell to 0.43 sen from 2.61 sen. No dividend was declared.

Compared with its immediate preceding quarter of 2QFY2023, UWC's net profit is down 75.3% from RM19.1 million, while revenue fell 48.1% from RM91.92 million.

“The group still maintains an optimistic outlook towards both its business and the industries in which it operates for the coming years. The group continues to review its investment portfolio and strategise long-term growth plans to capitalise potential business opportunities,” it said on its prospects.

"The group has ventured into business for 5G network equipment, autonomous vehicle-related chip testers as well as EV [electric vehicle] battery cell emulators projects. As more front-end semiconductor manufacturing-related projects are in the pipeline, the group is actively working with potential customers for project transfer in coming years. It remains optimistic in securing orders from these new customers," it added.

On Tuesday (June 20), shares of UWC closed seven sen or 2.33% lower at RM2.93, valuing the company at RM3.23 billion. The counter has fallen 27.65% in the past six months.

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