KUALA LUMPUR (June 24): Shares of UWC Bhd (KL:UWC) climbed in early trade on Wednesday after the semiconductor equipment maker reported a sharp jump in third-quarter earnings, offering some support to Malaysia’s battered technology sector one day after a broad sell-off in regional tech stocks.
The counter opened at RM6.18 and reached an intra-day high of RM6.46 before closing 22 sen or 3.6% higher at RM6.32, with some 5.55 million shares changing hands. At the last price, the group was valued at RM6.97 billion.
The gain came after UWC posted a near threefold rise in net profit of RM26.32 million for the third quarter ended April 30, 2026 (3QFY2026), driven by stronger semiconductor-related orders and improved operating leverage.
The company’s latest showing comes off the heels of a lift in sentiment towards the local semiconductor space, after the Bursa Malaysia Technology Index slid 3.96% on Tuesday in line with weakness across regional technology shares. During Wednesday’s early trade, the Technology Index was seen making a slight recovery, rising 1.78% to 72.66 points.
Analysts were broadly positive on the quarter, pointing to sustained order momentum and a stronger outlook for the group’s semiconductor business, though views diverged on valuation.
In a research note, Phillip Capital said UWC delivered another earnings beat, with the nine-month core net profit making up 81% of its full-year forecast and 78% of consensus estimates.
The research house said the stronger performance was underpinned by higher semiconductor revenue, margin expansion and a fifth straight quarter of order book growth, with outstanding orders rising to RM270 million from RM250 million in the previous quarter.
It said UWC’s management expects momentum to remain firm across both front-end and back-end semiconductor activities, supported by front-end module wins and rising demand for system-level testers.
Phillip Capital raised its earnings forecasts for FY2026 to FY2028, but downgraded the stock to ‘hold’ from ‘buy’ with a higher target price (TP) of RM6.30, citing that much of the near-term earnings growth appears to have been priced in.
Meanwhile, Hong Leong Investment Bank Bhd (HLIB) maintained its ‘buy’ call but also lifted UWC’s TP to RM7.10 from RM5.60, citing stronger demand visibility in wafer fabrication equipment and order momentum from both front-end and back-end customers.
“We expect a stronger 4Q delivery, underpinned by solid order momentum, alongside easing forex headwinds,” said HLIB.
It also highlighted improving industry prospects, noting that major customers have been expanding capacity in the region, while UWC has secured a new wafer fab equipment customer with production expected to begin in calendar year 2027.
On Tuesday evening, a selldown swept across Malaysian semiconductor counters, mirroring weakness in regional technology shares after a sharp correction in South Korean chip stocks spilled over into the broader market.
UWC was among the names caught in the rout, alongside SkyeChip Bhd (KL:SKYECHIP), Greatech Technology Bhd (KL:GREATEC), Malaysian Pacific Industries Bhd (KL:MPI), Mi Technovation Bhd (KL:MI) and ViTrox Corp Bhd (KL:VITROX).
Bloomberg data showed six analysts covering UWC with five ‘buy’ calls and one ‘hold’ recommendation. The 12-month average TP is RM7.01.