UWC BERHAD (UWC)

Company Profile: UWC Berhad (Bursa: 5292)

UWC Berhad is not just another metal fabrication company. It is a supplier of critical precision engineering components to the world's largest semiconductor equipment OEMs — companies like Applied Materials, ASML, Lam Research and KLA. Every metal piece UWC shapes, every component they machine, goes into the machines that make the chips in your phone, laptop and car.

Company History

UWC was founded in 1990 by two close friends, Dato' Seri Ng Chai Eng and Dato' Lau Chee Kheong, starting from a 500 sq ft rented workshop in Penang. From a small business supplying wire-cut machines to the semiconductor industry, they expanded into metal fabrication, then loose components, then modules, and ultimately full assembly capability. After nearly 30 years of organic growth, UWC listed on Bursa Malaysia on 10 July 2019 at an IPO price of 82 sen per share.

Core Business

• Precision Sheet Metal Fabrication: Laser cutting, bending, welding, surface treatment — for chassis and structural components of semiconductor equipment
• CNC Machining: Five-axis machining for high-resolution components with sub-micron tolerances
• Assembly Services: Sub-module and full-system assembly, including Class 10K clean room capabilities
• Front-End Semiconductor Equipment Components (NEW 2025): Strategic move into higher-margin segment — components for wafer processing equipment

Industries Served

• ✅ Semiconductor Equipment (largest segment, ~70-75% of revenue)
• ✅ Life Sciences and Medtech
• ✅ Heavy and Industrial Equipment
• ✅ Defence Sector (selective)

Manufacturing Footprint

Shariah Compliance Status

✅ UWC Berhad is a SHARIAH-COMPLIANT stock — confirmed by the Securities Commission Malaysia's Shariah Advisory Council. Suitable for investors who can only invest in shariah-compliant equities.

Business Transformation: The Real Growth Story

What makes UWC compelling is not just the financial numbers — it is the transformation trajectory of the company. From RM40 million quarterly revenue (2023) to RM136 million per quarter (early 2026), this 240% growth in 3 years is driven by two key factors: the global semiconductor cycle recovery, and UWC's strategic decision to move up the value chain into more complex, higher-margin front-end components.

The strongest quarter in seven years

UWC reported Q4 FY26 revenue of RM186.18 million (+71.1% YoY, +22.9% QoQ) and net profit of RM37.60 million, at the upper end of CGSI's RM31 million - RM40 million forecast. For the full year: revenue RM594.89 million (+54.1%), profit before tax RM109.84 million (+144.4%) and net profit RM93.84 million (+131.6%), EPS 8.51 sen. No dividend was declared. Net assets per share were RM0.52 (RM0.43 a year ago).

Source: Bursa announcement 30 Sep 2026 and our database. Q4 FY25 uses the latest restated figure (RM16.37 million). Figures are unaudited.

Full-year net margin was 15.8% but the latest quarter reached 20.2%. If Q4 is a new base, annualised earnings power is about RM150 million, nearly 60% above FY26.

No dividend, and no sign of change

UWC declared no dividend for Q4 FY26 or for the full year FY26 (0 sen), and the last eight quarters in our database also show zero dividends. The trailing yield is 0%. The company is retaining cash to fund new capacity, including the Taiping plant.

For dividend investors UWC is not a fit. Returns come entirely from price appreciation.