KUALA LUMPUR (June 15): UWC Bhd saw its net profit for the third quarter ended April 30, 2021 (3QFY21) increase by 58%, following higher earnings from its semiconductor and life science segments.

In a bourse filing, the group announced that its net profit had increased to RM23.04 million in 3QFY21, from RM14.59 million in the corresponding quarter last financial year.

Quarterly revenue increased by 28.7% to RM71.78 million from RM55.8 million.

Breaking down its results, the group said its semiconductor segment contributed 63% to total revenue, while its life science segment contributed 28%.

“In addition, the improved performance reflected the effectiveness of the group’s ongoing technology-driven improvement initiatives, which prioritised on quality enhancements, increased production utilisation and cost-efficiency. These initiatives had enabled the group to meet the stronger global demand efficiently and effectively,” it added.

It did not declare any dividends in its most recent financial quarter and has not done so for the nine months ended April 30, 2021 (9MFY21).

On a quarter-on-quarter (q-o-q) basis, the group saw its net profit dip from RM27.2 million, while its revenue declined by 7.8% from RM77.81 million.

9MFY21 net profit increased by 84.03% to RM71.99 million, from RM39.12 million in 9MFY20. Its nine-month revenue was higher by 40.24% at RM221.09 million from RM157.64 million.

UWC executive director and group chief executive officer Datuk Ng Chai Eng said in a statement that "UWC remains on course".

"Despite headwinds faced by global economies, the group continues to record earnings growth. Our cumulative nine months’ profits have already surpassed FY20 full-year profits. As for the movement control order phase 3, UWC’s services are categorised as essential services, therefore we are allowed to operate at 60% capacity. We have not received any cancellation of orders and continue to receive enquiries from existing and potential clients.

“The semiconductor industry remains robust as we continue to widen our customer base while fulfilling existing orders for chip testers, test handlers, automotive chip testers, 5G test equipment as well as moving up the value chain into front-end semiconductor. The life science and medical technology segments have also experienced growth given our involvement in manufacturing of Covid-19 related test equipment, as well as test equipment for new virus strains.

“With that said, UWC will be identifying additional facilities in the near future and increase capacities such as building and leasing new factories, purchasing new CNC machines to cater for this upcoming growth and Industry 4.0 progression,” said Ng.

Shares in UWC closed 2.46% or 13 sen at RM5.42, valuing it at RM5.97 billion.