KUALA LUMPUR (Sept 24): UWC Bhd (KL:UWC) reported a 6.1% year-on-year increase in its fourth quarter profit, following a recovery of the semiconductor sector, coupled with revenue contributions from its recently acquired subsidiaries.

The Penang-based integrated engineering solutions provider made a net profit of RM2.06 million for its fourth quarter ended July 31, 2024 (4QFY2024), up from RM1.94 million in 4QFY2023. Quarterly revenue jumped 90.4% to RM76.11 million from RM39.97 million in 4QFY2023, its bourse filing showed.

Earnings per share rose to 0.19 sen from 0.18 sen per share. No dividend was declared.

UWC in November 2023 acquired a 51% stake in MCE Technologies Sdn Bhd (MCET) and 100% equity interest in MCT (Thailand) Co Ltd, which is a wholly-owned subsidiary of MCET, for S$2.72 million (equivalent to RM9.46 million), cash.

For the full FY2024, UWC’s net profit fell 72.3% to RM15.24 million from RM55.02 million in FY2023, as revenue dipped 8.5% to RM248.69 million from RM271.74 million, while expenses and cost of raw materials and staff rose.

The group is involved in the provision of precision sheet metal fabrication, value-added assembly services and precision machined components, mainly for the semiconductor, life science, medical technology and heavy-duty industries.

Going forward, UWC remains optimistic on its outlook given the expected strong recovery in the global semiconductor market, with an estimated 16% growth in 2024.

The growth in 2024, the group said, is anticipated to be primarily driven by the logic and memory sector.

"The group continues to focus on commencing new projects, acquiring new customers and strategising long-term growth plans to optimise potential business opportunities," it said.

Shares of UWC closed five sen or 2.35% lower at RM2.08 on Tuesday, giving it a market capitalisation of RM2.29 billion.