[%YhoE%]
Research by HLIB
Sell (Maintain) – TP RM3.35

“Results within estimates"

Uchi’s results met estimates with 1Q24 core PAT of RM29.3m (-21% QoQ; +11% YoY). Overall top-line in USD remained flat YoY, while QoQ registered a decline. This mirrors the group pessimism with guidance of single digit revenue decline in FY24 on the back of the volatile market with geopolitical conflicts, interest rate hike and rise of global inflation. Additionally, Uchi expects just a minority of 1/6th of the group's revenue will be generated from the new products categorized under the approved technology by MIDA for pioneer status and the profit from the remaining revenue will be taxable at the statutory tax rate of 24%. Maintain SELL, TP RM3.35 based on unchanged 15x PE multiple of FY24 EPS.

Analyst:
Syifaa’ Mahsuri Ismail
[%HkWA%]

$KLSE-UCHITEC
Research by HLIB
Sell (Maintain) – TP RM3.35

“Results within estimates"

Uchi’s results met estimates with 1Q24 core PAT of RM29.3m (-21% QoQ; +11% YoY). Overall top-line in USD remained flat YoY, while QoQ registered a decline. This mirrors the group pessimism with guidance of single digit revenue decline in FY24 on the back of the volatile market with geopolitical conflicts, interest rate hike and rise of global inflation. Additionally, Uchi expects just a minority of 1/6th of the group's revenue will be generated from the new products categorized under the approved technology by MIDA for pioneer status and the profit from the remaining revenue will be taxable at the statutory tax rate of 24%. Maintain SELL, TP RM3.35 based on unchanged 15x PE multiple of FY24 EPS.

Analyst:
Syifaa’ Mahsuri Ismail
syifaa@hlib.hongleong.com.my

$UCHITEC / 7100 (UCHI TECHNOLOGIES BERHAD)