UWC wraps up FY21 with 5% rise in 4Q profit, 58% jump in annual earnings

UWC wraps up FY21 with 5% rise in 4Q profit, 58% jump in annual earnings
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KUALA LUMPUR (Sept 7): UWC Bhd wraps up its financial year ended July 31, 2021 (FY21) with a 4.83% increase in quarterly net profit to RM19.55 million from RM18.65 million in the same quarter a year ago, with full year net profit up 58.47% to RM91.54 million.

In a bourse filing today, the semiconductor test equipment maker said the quarterly earnings growth was mainly due to developments in both the semiconductor industry and life science industry, which contributed to 66% and 26% of its total revenue, respectively. The improved performance reflected the group's adoption of technological advancements towards Industry 4.0 through automation, digitalisation, quality improvement and cost efficiency initiatives, it said.

The group's revenue for the three months ended July 31, 2021 (4QFY21) rose 4.12% to RM63.94 million from RM61.41 million in 4QFY20. Earnings per share (EPS) rose to 1.78 sen from 1.69 sen previously.

The group declared an interim dividend of 1.67 sen, which amounts to RM18.3 million, to be paid on Oct 8.

For the full FY21, UWC's net profit surged to RM91.54 million from RM57.76 million in FY20, while EPS jumped to 8.32 sen from 5.25 sen, as revenue climbed 30.12% to RM285.02 million from RM219.05 million.

On prospects, UWC said it is optimistic about the quarters ahead, driven by increasing enquiries from existing and potential customers, despite headwinds from supply shortages amid a renewed surge in Covid-19 infections.

"Under the complete blockade during MCO 3.0, the group can only maintain 60% of its production capacity. However, it did not lead to cancellation of orders. Instead, there were continuous orders received from semiconductor and life science, as well as new orders for 5G test equipment are in the pipeline," the group said.

Citing the latest World Semiconductor Trade Statistics, UWC noted the world semiconductor market is expected to grow by 25.1% in 2021 and all geographical regions including the Asia-Pacific region are expected to show double digit growth.

"Therefore, UWC remains optimistic about the prospects of the businesses and industries in which UWC operates for the coming years. The group also has taken various measures to reduce the impact of the Covid-19 epidemic on operations," it said.

UWC shares slipped 17 sen or 3.05% to settle at RM5.40 today, for a market capitalisation of RM5.94 billion.

Tan Choe Choe