UWC Bhd experienced a 75% year-on-year decline in net profit for its second quarter ended January 31, 2024 (2Q24), mainly due to the semiconductor market downturn impacting revenue and increased expenditure for future growth.

Net profit fell to RM4.81 million from RM19.1 million in the previous year, with quarterly revenue decreasing by 33.5% to RM61.13 million.

Despite challenges, UWC remains optimistic, focusing on new projects, customer acquisition, and long-term growth strategies.

The company is venturing into front-end semiconductor engineering businesses and expanding production capacity for its core business and new projects like electric vehicles (EVs).

Additionally, UWC is working on securing qualifications for various semiconductor modules and expects a gradual market recovery in 2024.

UWC's shares closed 2.1% lower at RM3.20 today, dropping by 7 sen. This resulted in a market capitalisation of RM3.53 billion.