KUALA LUMPUR (Dec 19): UWC Bhd's (KL:UWC) net profit rose 49.2% to RM6.5 million in the first quarter ended Oct 31, 2024 (1QFY2025) from RM4.35 million a year ago, lifted by increasing orders from the semiconductor industry. 

Contributions from its acquired subsidiaries, MCE Technologies Sdn Bhd (MCET) and MCT (Thailand) Co Ltd, also add to the earnings.

Earnings per share came in higher at 0.59 sen in 1QFY2025, from 0.4 sen in 1QFY2024, the Penang-based integrated engineering solutions provider said in a bourse filing.  

Quarterly revenue almost doubled to RM89.42 million, from RM45.46 million a year ago.

No dividend was declared for the quarter under review.  

Last year, UWC acquired a 51% stake in MCET and 100% equity interest in MCT (Thailand), which is a wholly owned subsidiary of MCET, for S$2.72 million (equivalent to RM9.32 million), cash. Both companies are principally engaged in the metal stamping and manufacturing of tools and fixtures.  

On its prospects, UWC said the front-end semiconductor industry is experiencing improvement in demand, particularly for the system level and performance testers. It has won multiple projects and orders have been loaded from front-end customers.  

The group is also undertaking production capacity expansion to cater for its existing core business and new front-end semiconductor engineering business and electric vehicles projects.

It is expected to complete the first phase of the clean room for its front-end semiconductor business by January 2025 and full completion of the three–storey clean room building by end-March 2025.

After hitting a multi-year low of RM1.76 in Sept this year, UWC’s share price has rebounded. 

The stock closed up four sen or 1.37% to RM2.97, bringing it a market capitalisation of RM3.27 billion. AskEdge data showed that UWC currently trades at a over 200 times trailing price-earnings (P/E) ratio, which is the highest among its peers.