Uchi Technologies warns of double-digit revenue drop in 2020

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KUALA LUMPUR (March 26): Uchi Technologies Bhd, a company specialising in the design of electronic control systems, warned that it expects revenue in US dollar term to decline by a low double-digit for the financial year ending Dec 31, 2020 (FY20) on lower demand.

Nevertheless, the group is confident of remaining profitable in FY20 amid these unprecedented challenges.

Uchi said like the movement control order currently in place in Malaysia, the countries where its customers are located are also experiencing lockdowns as part of virus containment measures. 

"The group will continue to closely monitor the latest developments and take appropriate measures to mitigate any upcoming risks, as well as provide updates on any further developments," it told a bourse filing today.

Uchi's net profit rose 10% to RM75.95 million in FY19 from RM69.01 million in the previous year, while revenue climbed 12% to RM156.67 million from RM139.97 million in FY18.

At 2.55pm, Uchi shares were down 6 sen or 3% at RM1.94, with 173,300 shares done, bringing a market capitalisation of RM875.29 million.