KUALA LUMPUR (Aug 25): Uchi Technologies Bhd’s net profit dipped 13.7% to RM28.37 million in the second quarter ended June 30, 2023 (2QFY2023), from RM32.89 million a year ago, due to the absence of asset disposal gain recognised a year earlier.

Quarterly revenue grew 1.2% to RM57.81 million from RM57.13 million recorded a year ago, the manufacturer of electronic control systems said in a filing to Bursa Malaysia on Friday (Aug 25).

The group registered a 7% growth in 2Q operating profit of RM35.6 million mainly due to the strength of the US dollar against the ringgit, despite revenue in US dollar for the quarter decreasing by 3% to US$12.9 million as a consequence of lower sales of the group's products and services.

For the first half of the year (1HFY2023), Uchi recognised a 10% increase in net profit to RM66.17 million, compared to RM59.66 million posted in 1HFY2022. Revenue for the period rose 9.7% to RM115.24 million against RM105.08 million a year earlier.

Uchi added income tax expenses for the period ended June 30, 2023 also increased to RM17 million due to an increase in income generated from non-pioneer products.

On prospects, Uchi said it is cautiously optimistic that US dollar revenue for FY2023 is expected to grow at around a high single-digit rate compared to FY2022.

“The group anticipates no significant changes in the geographical distribution and the revenue contribution ratio of product groups, even though performance might be affected by factors such as fluctuations in the US dollar, material shortages, and changes in material and labour costs,” the company said.

The group maintains confidence in sustaining profitability with a strong balance sheet.

Uchi's shares closed down four sen or 1.11% to RM3.56, valuing the group at RM1.63 billion.