KUALA LUMPUR, Dec 2 — Integrated engineering supporting services provider UWC Bhd remains optimistic of its business prospects as it been receiving enquiries from potential local and global customers besides existing clients, on a regular basis.
Hong Leong Investment Bank, in a note today, said the prospects will broaden UWC’s customer base, diversify its segmental exposures and increase order book in the process.
“UWC foresees a stronger demand for chip testers ahead in tandem with the projected semiconductor equipment market growth.
“It is working closely with customers in new product development, as well project transfer, while targeting potential high-end customers,” Hong Leong said.
Furthermore, the research house said UWC has undertaken the manufacturing of front-end semiconductor and 5G equipment.
It is constructing a class 10,000 cleanrooms, which is expected to be completed by early 2021, to cater for front-end semiconductor equipment assembly.
“Also, UWC is expanding its assembly bay capacity. The autonomous vehicle chip tester is expected to commence mass production by end of the first half of the financial year 2021 (1HFY21),” it said.
As for life-science and medical segment, the group expects sustainable substantial growth ahead against the backdrop of Covid-19 and increased health awareness and living quality.
UWC’s net profit soared 93.50 per cent to RM21.71 million in the first quarter ended Oct 31, 2020 (Q1 FY21) from RM11.22 million, while revenue surged 52.4 per cent to RM71.5 million from RM46.91 million previously.
Hong Leong Investment has reiterated a “buy” call with unchanged target price of RM8.88. — Bernama
