UWC Bhd's increased site activities compared to early 2024, coupled with concrete recovery momentum in the ferrous segment contributing to rising orders, have improved the company's financial standing, according to local research house Philip Capital Sdn Bhd.

Analysts are increasingly positive on UWC's own recovery prospects, particularly in the ferrous segment, where overall operations are running at a higher 65% utilisation rate.

The total order book continues to show an upward trend, increasing from RM140 million towards the end of financial year ended July 31,2024 (FY2023/24), with around 30% of orders coming from the ferrous segment – a notable rise of 25% from the previous financial period, and also a reflection on strong structural demand driven by artificial intelligence (AI).

Philip Capital has maintained the BUY rating for UWC and has kept the target price unchanged at RM2.70.

As at 11:10am Oct 29, UWC's stock traded at RM2.21, down one sen from its settlement last Friday. The RM2.21 price level could potentially translate to stock gain of

UWC, a one-stop solutions provider of high-quality precision Computer Numerical Control (CNC) machining, certified automated welding, and advanced assembly.