Unisem quarterly net profit climbs to new peak in 4QFY20; board expects better prospects ahead

Unisem 4Q net profit rises following higher sales volume and higher ASPs

Unisem 4Q net profit rises following higher sales volume and higher ASPs

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KUALA LUMPUR (Feb 25): Unisem (M) Bhd’s net profit soared to a new record high of RM60.92 million for the fourth quarter ended Dec 31 2020 (4QFY20). It came in 20% higher quarter-on-quarter (q-o-q) from RM50.74 million in 3QFY20.

“Despite the economic uncertainty arising from the Covid-19 pandemic, the board expects the performance of the Group for the next financial year to be satisfactory,” said Unisem in a bourse filing today.

“In the mid to long term, the board expects the group’s prospects to improve on the back of its healthy balance sheet and the anticipated growth in its revenue and earnings from the capacity expansion at its facilities in Ipoh and Chengdu,” said the semiconductor firm when commenting on its prospects.

In the filing, the semiconductor company attributed the earnings growth to higher sales volume achieved q-o-q.

Quarterly revenue was 2.4% higher at RM366.37 million in 4QFY20 from RM357.68 million achieved in the immediate preceding quarter.

The company has declared a third interim dividend of two sen per share. Unisem has declared a total dividend per share of six sen for FY20.

On a year-on-year (y-o-y) basis, the group was loss making in the previous corresponding quarter with a net loss of RM26.85 million in 4QFY19. Its quarterly revenue was up 28.56% against RM284.98 million in 4QFY19.

Given the record breaking quarterly earnings, Unisem managed to return to the black for the full financial year ended Dec 31, 2020 (FY20). The group posted an annual net profit of RM142.79 million compared to a net loss of RM9.54 million the previous year. Annual  revenue grew 15.13% to RM1.29 billion from RM1.12 billion in FY19.

Unisem’s share price shot up 37 sen, or 4.3%, today to end the trading day at RM8.97 with 2.9 million shares changing hands. The stock soared to a record high of RM9.25 shortly after the lunch break.

For the full financial year, the group was back in the black with a net profit of RM142.79 million, from a net loss of RM9.54 million. As for its full-year revenue, the group saw a 15.13% increase to RM1.29 billion, from RM1.12 billion a year prior.

"Despite the economic uncertainty arising from the Covid-19 pandemic, the board expects the performance of the group for the next financial year to be satisfactory.

"In the mid to long term, the board expects the group's prospects to improve on the back of the group's healthy balance sheet and the anticipated growth in its revenue and earnings from the capacity expansion at its facilities in Ipoh and Chengdu," it said on its prospects.

As of noon market close, Unisem was up 5.12% or 44 sen higher at RM9.04, valuing it at RM7.29 billion. It saw 1.16 million shares done.

Kathy Fong and Surin Murugiah