KUALA LUMPUR (March 8): UWC Bhd posted a 7.94% drop in net profit for the second quarter ended Jan 31, 2022 (2QFY22) to RM25.08 million from RM27.24 million a year prior, due to higher depreciation expenses and staff costs.

In a bourse filing on Tuesday (March 8), the semiconductor test equipment manufacturer said this was a result of substantial capital investments in 2QFY22 as well as an increase in headcount in line with its corporate expansion plan.

Earnings per share (EPS) fell to 2.28 sen from 4.95 sen a year ago.

Quarterly revenue, however, rose 2.71% to RM79.92 million versus RM77.81 million in 2QFY21, underpinned by continued demand from the group’s global customers in the semiconductor as well as life science and medical technology industries.

In terms of quarter-on-quarter (q-o-q) performance, UWC’s net profit climbed 8.83% from RM23.04 million in 1QFY22, while revenue increased 6.19% from RM75.26 million. EPS climbed from 1.78 sen.

“The better [q-o-q] result was due to the higher demand from customers mainly from the semiconductor industry, as well as the expansion in the life science industry. It was partially offset by the rise in staff cost due to the share grant expenses incurred in current quarter.

“In addition, the performance was further improved due to gain on foreign exchange and gain on fair value adjustment on marketable securities as a result of the strengthening US dollar against the ringgit during the current quarter,” the group added.

For the six-month period ended Jan 31, 2022, UWC posted a net profit of RM48.12 million, a marginal 1.69% drop from RM48.95 million achieved in the previous corresponding period. However, the group’s six-month revenue improved 3.92% to RM155.17 million from RM149.31 million a year ago.

EPS declined to 4.37 sen from 8.9 sen.

Going forward, UWC said it remains positive on its outlook in line with the latest forecast of the semiconductor market’s expected growth.

“According to the latest forecast generated by World Semiconductor Trade Statistics, the world semiconductor market is expected to grow by 8.8% in 2022. All regions are also expected to show positive growth rates,” it said.

It noted that orders remain “very strong” from customers for semiconductor, life science and 5G test equipment, adding that it believes these industries will be its catalyst in the coming few years.

Shares in UWC closed 19 sen or 5.9% lower at RM3.03, giving it a market capitalisation of RM3.34 billion.