Unisem 2Q net profit jumps twofold to RM33.95m on higher sales, forex gains

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KUALA LUMPUR (Aug 3): Unisem (M) Bhd's net profit for the second quarter ended June 30, 2020 (2QFY20) jumped more than twofold to RM33.95 million, from RM14.45 million a year earlier, driven by higher sales volume and foreign exchange (forex) gains.

In a bourse filing today, Unisem said revenue for the quarter rose to RM310.08 million, from RM281.12 million previously, on higher sales volume.

Earnings per share (EPS) increased to 4.67 sen from 1.99 sen a year earlier.

Unisem declared an interim dividend of two sen to be paid on Sept 3.

For the first half ended June 30, 2020 (1HFY20), Unisem’s net profit fell to RM31.12 million, from RM20.51 million, on the back of a revenue of RM565.24 million versus RM544.96 million previously.

Reviewing its quarterly performance, Unisem said the improvement in profit was mainly attributable to the higher sales volume achieved with the resumption of normal production during the quarter.

On its prospects, Unisem said global consumption and consumer confidence remain volatile due to the current Covid-19 pandemic.

“At Unisem, we remain cautious and will continue with our stringent cost control measures, exercise restraint on capital expenditure, and take safety measures vigilantly at our plants to protect the health and well-being of all our employees.

“The directors expect the operating environment of the group in 2020 to be challenging,” it said.

At the midday break today, Unisem was 8.79% or 24 sen higher at RM2.97, valuing it at RM2.18 billion.