Uwc good company need to pay income tax 24%.Greatec no need pay tax. If Uwc also no need pay tax like Greatec then eps will be 5.2sen compared to Greatec 3.71sen. In this sense Uwc is greater than Greatec!
UWC among top gainers on solid 1Q earnings: Integrated engineering support services provider UWC Bhd rose as much as 5.41% or 40 sen to RM7.79 after the group posted a 93.5% jump in net profit for the first quarter ended Oct 31, 2020 (1QFY21). To recap, the group reported a net profit of RM21.71 million for 1QFY21, boosted by stronger demand for both its semiconductor and life science businesses, compared with RM11.22 million a year ago.Meanwhile, its revenue climbed 52.4% to RM71.5 million from RM46.91 million a year earlier.
Hong Leong Investment Bank (HLIB) Research analyst Tan J Young said in a note today that UWC’s results met the research house’s expectations. The record-setting 1QFY21 core net profit of RM23 million (+27% quarter-on-quarter; >+100% year-on-year) matched HLIB's and the consensus full-year estimates,” he said. HLIB maintained its ‘buy’ call for UWC, with an unchanged target price (TP) of RM8.88, pegged at 38 times FY22 (ending July 31, 2022) earnings per share (EPS). Tan said the escalating trade intensity may eventually benefit UWC, which provides a one-stop solution as more companies shift production out of China to avoid import tariffs. Commenting on the robust outlook for the group, Tan said the group remains optimistic about its business prospects as it had been receiving enquiries from potential local and global customers on a regular basis. This will broaden its customer base, diversify its segmental exposure, and increase its order book in the process. UWC foresees 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 as project transfer, at the same time targeting potential high-end customers,” he said. Tan noted the group had undertaken the manufacturing of front-end semiconductor and fifth-generation network (5G) equipment. It is constructing a class 10,000 cleanroom, 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 the end of 1HFY21 (the first half ending Jan 31, 2021). As for the 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.
Current order book stands at ~MYR100mn UWC hosted an earnings call today for 1QFY21 results. Revenue of MYR71.5mn was up 52% y-y and 16% q-q due to strong demand in the semiconductor segment and expansion in the life science segment. Higher revenue, cost efficiencies and better product mix helped core profit rise 94% y-y and 16% q-q to MYR21.7mn. Management highlighted that its current order book stands at ~MYR100mn (~MYR70mn last quarter).
New product launches and capacity expansion on track to handle strong demand Management ordered 50 CNC (computer numerical control) machines, which are expected to arrive by 1QCY21. Its cleanroom facility, to be used for front-end semiconductor equipment assembly, will be completed by Jan-2021. To accommodate these, the company has converted 20-25k sqft of new production space in its current facility while leasing another 2 acres near the factory to build ~60k sqft production space (to be ready by mid-2021). This increase in capacity is intended to support growth under its revenue run-rate given its record high order book of MYR100mn. On the semiconductor segment, UWC will start supplying autonomous vehicle chip testers in 1QCY21, while it is also developing a new manipulator model with its existing customer. It has also developed new 5G radio frequency testers, currently being qualified at the customer’s site. As for the front-end semiconductor segment, management expects revenue to pick up (8% of 1QFY21 revenue) upon completion of its cleanroom facility. It is also looking to venture into DRAM testers by engaging with potential customers. In life science segment, the group has secured orders on COVID-19 testers and is now working on the assembly of DNA analyzer with one of its customers. 1QFY21 effective tax rate was 24%. Management believes there is room for a <20% tax rate as the company is applying for tax incentives for some of its products. Overall, given the strong order book, demand outlook and capacity growth, we raise FY21F-22F EPS by 17% each.
Upgrade to Buy with TP raised 50% to MYR10 (26% upside) In addition to EPS revision, we also raise the target CY2021F P/E to 45x (35x earlier) to factor in UWC’s strong growth outlook with EPS CAGR of ~44% for FY20-23F. With an upside of 26%, we upgrade the stock to Buy (from Neutral). It currently trades at 36x CY2021F P/E. Key risks include prolonged impact of COVID-19 outbreak, change in USChina trade relations, slowdown in key customers’ business, and competition.
Inari more and more IB call buy, release so called historic qr claimed by haters But big boys busy selling and taking profits Retailer chase high all trap
Same theory applied here Wait for century melt down to come
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
TheTruthHurt
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Posted by TheTruthHurt > 2020-11-05 15:53 | Report Abuse
Good QR coming out?. Sapu2 kasi licin.