[%UJDs%] 
Research by HLIB
HOLD – TP RM3.41

"Broadly within estimates”

Uchi’s recorded 2Q24 results with revenue of RM59.1m (-5% QoQ; +2% YoY) and core PAT of RM32.3m (10% QoQ; +33% YoY). This brought 1H24’s sum to RM61.7m (+22% YoY). Overall the demand for its products remained on a declining trend and management guided for a high-single digit percentage decline in sales in FY24. Margin saw improvement from favourable product mix coupled with the benefit from USD appreciation. We raise our TP marginally to RM3.41 (from RM3.35 earlier), as we roll forward our valuation year to FY25 (from FY24) pegged to unchanged 15x PE multiple. We upgrade our rating to HOLD (from Sell), as valuation has become more palatable following recent share price underperformance. Additionally, the decent dividend yield of >5% with tendency To tilt to the high side, will act as a support to downside risk. 

Analyst:
Syifaa’ Mahsuri Ismail
[%ENcj%]

$KLSE-UCHITEC 
Research by HLIB
HOLD – TP RM3.41

"Broadly within estimates”

Uchi’s recorded 2Q24 results with revenue of RM59.1m (-5% QoQ; +2% YoY) and core PAT of RM32.3m (10% QoQ; +33% YoY). This brought 1H24’s sum to RM61.7m (+22% YoY). Overall the demand for its products remained on a declining trend and management guided for a high-single digit percentage decline in sales in FY24. Margin saw improvement from favourable product mix coupled with the benefit from USD appreciation. We raise our TP marginally to RM3.41 (from RM3.35 earlier), as we roll forward our valuation year to FY25 (from FY24) pegged to unchanged 15x PE multiple. We upgrade our rating to HOLD (from Sell), as valuation has become more palatable following recent share price underperformance. Additionally, the decent dividend yield of >5% with tendency To tilt to the high side, will act as a support to downside risk. 

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

$UCHITEC / 7100 (UCHI TECHNOLOGIES BERHAD)