Unisem 3Q earnings weaker on lower sales

The fall in profit was mainly due to lower revenue from their Ipoh operations due to plant closure and headcount limitation 

by SHAFIQQUL ALIFF / pic source: unisemgroup.com

UNISEM (M) Bhd posted a 20.63% lower net profit of RM40.27 million in the third quarter ended Sept 30, 2021 (3Q21), compared to RM50.74 million in the previous corresponding quarter, primarily attributed to lower revenue at its Ipoh operations. 

In a filing to Bursa Malaysia yesterday, the semiconductor group stated that the decline in net profit was mainly due to lower revenue from their operations in Ipoh which were affected by the plant closure and headcount limitation imposed during the quarter as a result of the Enhanced Movement Control Order and instruction by the Health Ministry. 

Quarter revenue rose 2.4% year-on-year (YoY) to RM366.36 million. The company declared an interim dividend of two sen a share payable on Nov 26. 

For the nine months to Sept 30, the group recorded revenue of RM1.14 billion, which was 23.8% higher YoY while earnings rose by 71.45 YoY to RM140.32 million. 

The improvement in revenue was mainly due to higher sales volume while the improvement in net profit was attributable to higher revenue achieved, higher interest income and lower interest expense. 

Despite the challenges operating in the middle of the Covid-19 pandemic, including manpower limitations, logistic and supply chain interruptions, the outlook of the semiconductor industry remains positive as the demand for chips across all end segments remains robust, the company stated. 

“The directors expect the performance of the froup to be satisfactory for the remaining period to the end of the financial year,” the filing said. 

Unisem shares ended four sen higher at RM4.14 yesterday, valuing the company at RM6.68 billion.