corporate

Unisem's 2Q net profit down 30pct on change in product mix, higher costs

KUALA LUMPUR: Unisem (M) Bhd's net profit fell 30 per cent to RM16.76 million in the second quarter ended June 30, 2024 (2Q24) from a change in product mix and increased operating costs.

A year ago the company made a net profit of RM23.93 million.

Quarterly revenue, however, rose 4.2 per cent to RM394.59 million from RM378.66 million previously, underpinned by higher sales volume as well as appreciation of US dollar against ringgit. The company registered a lower earnings per share of 1.04 sen for the quarter compared to 1.48 sen in 2Q23.

For the cumulative six months period, Unisem registered a net profit of RM25.22 million from RM33.79 million a year ago, while revenue rose to RM759.36 million from RM732.71 million previously.

The company has declared a second interim dividend of two sen per share, which will be paid on Oct 4, 2024.

On prospects, Unisem expects its performance to be satisfactory for the next financial quarter.

"In light of elevated global tensions and ongoing conflict, the outlook of the semiconductor industry remains cautious.  "Malaysia stands to benefit from the trade tensions as a strategic alternative destination in the supply chain," it said.

Unisem also said that the launch of the National Semiconductor Strategy (NSS) by the Malaysian government is a positive development that should help drive the industry forward, thus benefiting local semiconductor companies.

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