KUALA LUMPUR (Dec 18): UWC Bhd’s net profit dropped 85.12% to RM4.35 million in the first quarter ended Oct 31, 2023 (1QFY2024) from RM29.25 million a year earlier, due to lower revenue. Earnings per share fell to 0.4 sen from 2.66 sen.

Quarterly revenue declined 51% to RM45.46 million from RM92.12 million, which the group blamed on the impact of macroeconomic headwinds especially the semiconductor market cyclical downturn.

On a quarter-on-quarter basis, the group’s net profit came in higher compared with RM1.94 million in 4QFY2023 as revenue climbed 13.73% from RM39.97 million.

In its filing with Bursa Malaysia, UWC said that based on the latest forecast by World Semiconductor Trade Statistics, the semiconductor market is expected to experience a robust recovery, with forecast growth of 13.1% in 2024.

Expansion in 2024 is anticipated across all categories and primarily driven by the memory sector, the group said.

“The group still maintains an optimistic outlook towards both its business and the industries in which it operates for the coming years while at the moment seeing signs of recovery.

“The group continues to focus on commencing new projects, onboarding new customers and strategizing long-term growth plan to optimize potential business opportunities,” added UC.

Shares in UWC closed 11 sen or 3% lower at RM3.56 on Monday, giving the group a market value of RM3.92 billion. Year to date, the stock has fallen by 10.1%.