KUALA LUMPUR (Sept 12): Automated test equipment assembler UWC Bhd continued to be reeling from the impact of the semiconductor industry downturn, after posting its weakest quarterly performance since listing, as net profit fell 93.55% year-on-year (y-o-y) in the fourth quarter ended July 31, 2023 (4QFY2023).

The company, which also services the life sciences industry, however sees a pick-up in demand in 2024, citing ongoing plans to expand production capacity amid signs of recovery from new markets like electric vehicles (EV).

UWC’s quarterly net profit fell to RM1.94 million or 0.18 sen per share, from RM30.11 million or 2.73 sen in 4QFY2022, as revenue fell 61.24% y-o-y to RM39.97 million, from RM103.14 million.

For the 12 months ended July (FY2023), UWC’s net profit had nearly halved to RM55.02 million or 4.99 sen per share, from RM106.94 million or 9.71 sen per share in FY2022. No dividend was declared for the period of FY2023, as compared to 2.91 sen per share in FY2022.

Full-year revenue fell 21.38% to RM271.74 million in FY2023, from RM375.63 million. The semiconductor segment’s contribution fell 33.57% to RM177.92 million, offset by other segments (up 36.81% to RM25.13 million) and life sciences (up 15.58% to RM68.69 million).

Commenting on prospects, UWC said it “still maintains an optimistic outlook” for the coming years, citing consistent enquiries regarding front-end semiconductor, life sciences and 5G test equipment-related supply.

A cleanroom facility in Batu Kawan, Penang is due in 2023, UWC said, adding that it is constructing a new warehouse there, as well as a fabrication site in Kamunting, Perak.

“Albeit near term challenges due to weakness in consumer devices affecting semiconductor demands, the group expects a gradual pick up in the year 2024, particularly improvement in system level and performance testers. The group has commenced production for its EV projects, with several more in the pipeline,” it said.

On the life sciences segment, UWC said it continues to maintain machines, DNA analysers and cell electroporation instruments as part of its future business direction.

“Leveraging on its expertise, the group engages in various project transfers with customers to secure more box-build jobs,” it said.

Shares of UWC rose 14 sen or 4.26% to RM3.43 on Tuesday, giving it a market capitalisation of RM3.78 billion. Year to date, the counter has lost 14.43%.