logo
Unisem's net profit slides to RM9.13mil in 2Q amid challenging global trade outlook

Unisem's net profit slides to RM9.13mil in 2Q amid challenging global trade outlook

The Star4 days ago
KUALA LUMPUR:Unisem (M) Bhd struck a cautious tone as it announced a weaker set of earnings for the second quarter ended June 30, 2025.
In its outlook, the group said it expects the operating environment to remain challenging due to tariffs and restrictions on global trade.
Unisem's net profit in 2QFY25 came in at RM9.13mil, a decline from RM16.76mil in the year-ago quarter, which translates to an earnings per share of 0.57 sen against 1.04 sen in the comparative quarter.
Revenue during the quarter under review was RM475.15mil as compared to RM394.59mil in 2QFY24.
In the six-month period to June 30, 2025, Unisem's net profit was RM15.14mil on revenue of RM898.77mil.
This compared to net profit of RM25.22mil on revenue of RM759.36mil in the year-ago period.
The board of directors approved a second interim dividend of two sen per share, going ex on Sept 18, 2025, and payable on Oct 3, 2025.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Watchdog: Unexplained Wealth Orders can deter graft, recover stolen assets
Watchdog: Unexplained Wealth Orders can deter graft, recover stolen assets

New Straits Times

time10 hours ago

  • New Straits Times

Watchdog: Unexplained Wealth Orders can deter graft, recover stolen assets

KUALA LUMPUR: The introduction of an Unexplained Wealth Order (UWO) could be a powerful tool to deter corruption and recover illicit assets, says Transparency International Malaysia (TI-M) president Raymon Ram. He said a UWO would strengthen Malaysia's anti-corruption framework by targeting wealth disproportionate to an individual's known income, even without a prior conviction. "It empowers authorities to demand explanations for wealth that far exceeds legitimate earnings," he said. Raymon said similar frameworks in the UK and Australia have proven effective in holding high-level individuals accountable, adding that success in Malaysia would depend on impartial enforcement. In the UK where it was introduced in 2018, a UWO is a court order issued to compel the target to reveal the sources of their unexplained wealth. If they do not provide an adequate explanation, or provide unsatisfactory evidence, the asset will be considered "recoverable property" for the purposes of a civil recovery order under the British Proceeds of Crime Act 2002 (Poca). A UWO can be sought without any civil or criminal proceedings having begun. There is no need for the subject of a UWO to have been convicted of an offence or to have had a civil law judgement against them. "If applied fairly, UWOs would send a clear message that unexplained wealth won't go unchecked." On legal implementation, Raymon said either amending existing laws or introducing a new statute is viable, though he favours a dedicated law. "While the Malaysian Anti-Corruption Commission Act and Anti-Money Laundering Act (Amla) include asset-tracing tools, they only apply during investigations into specific offences. A standalone UWO law would allow earlier scrutiny and recovery." With RM277 billion lost to fraud and illicit outflows from 2018 to 2023, Raymon said enforcement tools have proven inadequate. He, however, acknowledged challenges, especially around constitutional safeguards like the presumption of innocence and property rights. "Since UWOs shift the burden of proof, they must be carefully framed to survive legal scrutiny. "Positioning them as civil mechanisms, as in the UK, could mitigate constitutional issues." He also stressed the need for institutional capacity-building. "Agencies like the MACC and police need stronger forensic tools and protection from political interference. Judicial oversight is crucial to prevent political misuse." Raymon believes properly implemented UWOs could greatly enhance elite accountability. "Ordinary Malaysians are rigorously vetted over income for scholarships or loans, while the wealthy often avoid such checks. "A UWO regime would help level that playing field by making it routine to question and claw back wealth that can't be lawfully accounted for, regardless of one's status or connections. He added that the possibility of having to justify wealth at any time could deter corruption. "Knowing that unexplained millions could prompt immediate legal action may make those who are corrupt think twice." Meanwhile, the Coalition for Clean and Fair Elections (Bersih) chairman Muhammad Faisal Abdul Aziz agreed that Malaysia should have a mechanism to combat corruption among the elites. "Having UWO would be one of the ways that Malaysia can consider since it is perceived as straight forward and more practical to recover the stolen wealth without undergoing court processes which will take decades. "It will bring about all parties to always be cautious about the resources of their wealth." He said in order to implement UWO; "We can consider having an independent body to regulate that matter so that the UWO will not be misused for political weapons against others who are not in line with the government." Yesterday, former Klang member of Parliament Charles Santiago said in a series of posts on X that Malaysia needs an UWO to hold all elites accountable. This follows Prime Minister Datuk Seri Anwar Ibrahim's recent call for the sons of former prime minister Tun Dr Mahathir Mohamad to return their wealth if they cannot prove its sources. "This is not about rivalry, but fairness. We need a system where no one is beyond accountability, no matter how powerful.

Govt finalising talks on Mex II project, Dewan told
Govt finalising talks on Mex II project, Dewan told

The Star

time11 hours ago

  • The Star

Govt finalising talks on Mex II project, Dewan told

PETALING JAYA: Putrajaya is currently finalising discussions with the Receivers and Managers (R&M) of the Maju Expressway (Mex II) to find the best solution for completing the stalled extension project, says Works Minister Datuk Seri Alexander Nanta Linggi. According to Nanta, the discussions focus on a solution to complete the project, considering various aspects, including the project's cost, traffic impact analysis, toll rates, cash flow management, and other factors necessary to ensure the project's sustainability. 'The plan and direction of the Mex II project will be coordinated by a Central Agency together with the relevant Ministries or agencies, particularly regarding the financial model, taking into account the appropriate parameters for the assessment of the project's viability, including technical aspects, will be submitted to the Cabinet for consideration,' he said. Nanta stated this in a written parliamentary reply dated July 31, in response to Yeo Bee Yin (PH-Puchong), who had asked about updates on the Mex II project, including whether the concessionaire requires government approval for claim applications. She also inquired about the funding required for the project's completion and whether additional funding would result in higher toll rates. According to Nanta, the Mex II project was entirely borne by the concessionaire through the build-operate-transfer (BOT) method. 'All project progress confirmation, including progress claims, is reviewed and verified between the contractor, concessionaire, supervision consultant and independent checking engineer, which are submitted directly to the sukuk party,' said Nanta. 'Therefore, the progress claims for this project do not involve approval at the federal level, since it involved private financing,' he added. Mex II is a planned three-lane dual carriageway designed to connect the MEX Putrajaya interchange to the KLIA highway. The project began construction in 2016, and it was initially scheduled for completion in December 2019, but was halted due to financial issues. The 18km extension project of the Mex II also came under scrutiny recently following a graft probe into allegations of false claims involving RM360mil. Four individuals, including a Datuk Seri, were previously detained in connection with investigations into funds raised through sukuk issuance for the project. Malaysian Anti-Corruption Commission (MACC) chief commissioner Tan Sri Azam Baki had said 61 witnesses had been called in to assist with investigations In early May, the MACC seized various assets, including luxury vehicles, designer handbags, jewellery and cash totalling RM32mil from an individual with a Tan Sri title. This followed reports that MACC had opened three investigation papers related to bribery and false claims involving the Mex II project.

Unisem faces pricing pressure amid Malaysian ops' losses
Unisem faces pricing pressure amid Malaysian ops' losses

New Straits Times

time11 hours ago

  • New Straits Times

Unisem faces pricing pressure amid Malaysian ops' losses

KUALA LUMPUR: Unisem (M) Bhd is believed to be under pricing pressure to fill production capacity, notwithstanding the ongoing losses at its Malaysian operations, according to Affin Hwang Capital. Affin Hwang said Unisem's management expects the losses in its Malaysian unit to persist for another one to two quarters. It added that group margins have also fallen to their lowest level in a decade, reflecting ongoing cost challenges. For the second quarter of 2025 (2Q25), Unisem recorded a ringgit-to-US dollar exchange rate of RM4.30 per US dollar, about three per cent stronger than the previous quarter. "Despite the currency appreciation, the company reported a 12 per cent quarter-on-quarter (QoQ) increase in revenue, exceeding its earlier guidance of five per cent to 10 per cent sequential growth in US dollar terms. "When measured in US dollars, sales climbed 15 per cent QoQ, driven by a recovery in demand in line with the global semiconductor upcycle. "On a year-on-year (YoY) basis, revenue rose 20 per cent, benefiting from a low base in the same period last year due to the cyclical downturn in the industry. "However, despite posting record-high quarterly revenue, Unisem's Ebitda margin declined by 1.8 percentage points to 14.5 per cent, pressured by rising operating costs," it noted. Although Unisem's first half of 2025 (6M25) revenue was up 18 per cent YoY, Ebitda margin compression, higher depreciation, interest expenses and tax charges dragged down net profit. Margins were affected by rising raw material prices, increased utility and wage costs, as well as startup expenses at Unisem's new Gopeng facility. As a result, core earnings for 6M25 plunged 73 per cent YoY. Overall, Affin Hwang said Unisem's overall results fell short of expectations, achieving only 12 per cent and 10 per cent of its and the street's full-year financial year 2025 (FY25) estimates respectively. It said the shortfall was primarily due to lower-than-expected profit margins. Affin Hwang maintains its target price of RM1.62 for Unisem, based on an unchanged target price-to-earnings (PE) multiple of 23 times the estimated earnings per share (EPS) for FY26. The firm revised its FY25E EPS forecast downward by 26 per cent, while leaving its FY26 and FY27 EPS estimates largely unchanged. However, this implies a sharp 162 per cent jump in earnings for FY26, a growth trajectory that may carry downside risks. The firm said these risks stem from the recurring downward revisions to earnings projections, driven primarily by uncertainty surrounding trade tariffs and a significantly higher operating cost base. On the upside, it said potential catalysts include new customer acquisitions, a stronger-than-expected demand recovery and further appreciation of the US dollar against the ringgit.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store