Friday 29 Mar 2024
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KUALA LUMPUR (June 4): UWC Bhd, whose share price have more than doubled over the past two months, today reported a 65% jump in its latest quarterly net profit on the back of stronger demand from semiconductor customers globally.

The net profit for the third quarter ended April 30, 2020 rose to RM14.59 million, from RM8.82 million a year earlier.

Revenue increased 46% to RM55.8 million from RM38.31 million previously.

In a statement today, the integrated engineering support services provider said the better performance was despite being restricted to operate at only 50% capacity for seven out of the 13 weeks during the third quarter, as a result of the movement control order (MCO) that was imposed on March 18.

The better earnings in the quarter pushed up UWC’s nine-month net profit by 50% to RM39.12 million, from RM26.16 million in the previous corresponding period, as revenue jumped 62% to RM157.64 million from RM97.45 million.

“I am incredibly pleased with the results, as the past few weeks have been very trying times,” said UWC executive director and group CEO Datuk Ng Chai Eng.

“Our orders remained strong, with no cancellations to date during this current (MCO) period. We have been adapting to the new norms by requesting for more online video conferencing in the process of qualifying products to minimise disruptions to our operations,” he said.

Ng said the lockdown in most countries will not discourage UWC from moving forward.

“We are still optimistic of the industry’s future prospects, as technology advancement will always continue. We managed to weather through [the quarter] despite being required to operate at only 50% capacity then. Now that UWC is allowed by the government to run at full capacity (from May 1), our outlook should be brighter,” he added.

Shares of UWC fell to a recent low of RM1.10 on March 19, upon the government’s announcement of the MCO. It has since climbed 185% to close to RM3.14 today, valuing the group at RM1.73 billion.

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