Unisem posts surge in third-quarter profit, declares interim dividend

Unisem posts surge in third-quarter profit, declares interim dividend
Unisem profit surges

A recovery in demand across the semiconductor supply chain helped Unisem (M) Bhd deliver stronger growth in the third quarter ended 30 Sept 2026. In addition to higher sales, the company also benefited from increased other operating income and announced its first interim dividend for the current financial year.

Highlights

  • Unisem posts third-quarter net profit of RM30.73 million, up 59% year on year, with revenue rising 23% to RM607.66 million.
  • First interim dividend of one sen per share for FY2026 declared, payable on 8 December, amid recovering customer demand and better capacity utilisation.
  • For the nine months, net profit fell 21% to RM27.28 million due to higher operating costs and foreign exchange movements, despite revenue rising 18% to RM1.64 billion.

This article was translated from the original. Read the original version by our correspondent here.

Third-quarter performance and dividend details

As reported by The Edge Malaysia, citing its Bursa filing on Friday, Unisem recorded a net profit of RM30.73 million for the three months ended 30 Sept 2026, up 59% from RM19.38 million a year earlier, while revenue rose 23% to RM607.66 million from RM492.74 million on higher sales volume.

Other operating income increased 55% to RM13.74 million. Gross profit grew 38% year on year to RM62.18 million, while the gross margin rose to 10.23% from 9.12%.

Unisem also declared its first interim dividend of one sen per share for FY2026, payable on 8 Dec.

Demand outlook and share-market pressure

For the nine months ended 30 Sept 2026, Unisem's net profit fell 21% to RM27.28 million from RM34.52 million a year earlier, even as revenue increased 18% to RM1.64 billion from RM1.39 billion. The group attributed the decline in profit for the period to foreign exchange movements and higher operating costs, despite improved sales performance.

Unisem provides semiconductor assembly and testing services, including packaging and testing integrated circuit chips for electronics companies. For the remainder of the financial year, the group expects its performance to be supported by a continued recovery in customer demand and better utilisation of installed capacity across its operations.

Unisem shares have also come under pressure recently amid a global sell-off in technology and semiconductor stocks following a sharp overnight decline on Wall Street. At Friday's midday break, the shares were down 24 sen, or 6.12%, at RM3.68, giving the company a market capitalisation of RM6.31 billion.

In an earlier article, we discussed the Nasdaq's decline 100 by 2.2% as continued selling pressure kept the index below its 20- and 50-day moving averages despite ongoing optimism about AI. We also highlighted that short-term momentum remained dominated by sellers, with market focus shifting to earnings reports from major technology companies and key support/resistance levels as determinants of the next direction.

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