KUALA LUMPUR (Dec 17): UWC Bhd (KL:UWC) is expected to see stronger revenue in coming months that will sustain earnings growth, analysts said, after an underwhelming start to its fiscal year.
Net income for the three months ended Oct 31, 2025 (1QFY2026) accounted for less than 20% of the consensus’ full-year estimate though the consensus still appears upbeat that earnings will catch up with forecasts by the financial year end.
“We expect the ongoing sequential improvement to bolster investor confidence in UWC’s ability to deliver strong earnings growth,” said Hong Leong Investment Bank in a note, which kept its ‘buy’ call on the stock.
UWC rose in Wednesday trading, adding as much as 15 sen or nearly 4% to RM4.12, its highest in more than a month. The stock has climbed nearly 30% so far this year thanks to a surge in earnings on the back of a rebound in the semiconductor sector.
Investors have also cheered Nvidia’s partnership with one of UWC’s clients to co-develop next-generation chips for data centres and personal computers.
The stock also enjoys near-unanimous bullish ratings with five ‘buy’ and one ‘hold’ calls among the analysts tracked by Bloomberg. The consensus projects a net profit of about RM98 million for the current financial year and the average 12-month target price is RM4.37.
Earnings at the company, which started off providing back-end engineering services and has now moved into the higher-margin business of producing subsystems for front-end equipment, will be sustained by a strong recovery in semiconductor orders, said Phillip Capital.
The research house, which has the highest target price for UWC at RM4.98, said it expects “share price rerating to be driven by improved earnings visibility and potential positive earnings surprises, underpinned by additional investments from its major customer”.