UWC Bhd Expected to Achieve Strong Earnings Growth Amid Semiconductor Demand
Analysts forecast positive prospects for UWC Bhd, driven by strong order momentum from front-end and back-end customers. Hong Leong Investment Bank Research anticipates robust earnings growth for FY26 and FY27, with increasing production yields and shipments from key customers. UWC reported a second-quarter profit of RM25 million and a revenue of RM136 million, with a growing order book of RM250 million. Phillip Capital Research raised its target price to RM5.75, while Kenanga Research adjusted forecasts due to foreign currency impacts but remains optimistic about future earnings.
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UWC Bhd is projected to see strong earnings growth due to increasing orders from its front-end (FE) and back-end (BE) customers. Hong Leong Investment Bank Research expects double-digit growth for customer L in 2026, with production yields above 75%.
The BE segment is ramping up shipments of memory test equipment, with plans to increase from 20 to 35 units per week by mid-2026. UWC's second-quarter profit was RM25 million on RM136 million revenue. The order book rose to RM250 million, with 40% from FE. Phillip Capital has set a target price of RM5.75, while Kenanga Research has adjusted FY26 and FY27 earnings due to currency impacts but remains optimistic about semiconductor contributions.
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