KUALA LUMPUR (May 17): Uchi Technologies Bhd saw its net profit for the first quarter ended March 31, 2016 (1QFY16) grow by 30.8% to RM13.4 million or 3.46 sen per share from RM10.3 million or 2.75 sen per share in 1QFY15, mainly due to the appreciation of the US dollar against the Malaysian ringgit during the reporting quarter.
The Group's revenue was also higher by 19.43% at RM30.6 million in 1QFY16 as compared to the RM25.6 million recorded in 1QFY15.
In a filing with Bursa Malaysia today, it said Group's income tax expense for the year under review reflects an effective tax rate that is lower than the statutory income tax rate mainly because one of its subsidiary companies, Uchi Optoelectronic (M) Sdn Bhd, was granted pioneer status by the Ministry of International Trade and Industry for the design, development and manufacture of touch screen advance display, high precision light measurement (optoelectronic) equipment, and mix signal control system for centrifuge or laboratory equipment.
"Under this incentive, upon certain terms and conditions being fulfilled, 100% of the statutory income derived from the design, development and manufacture of the abovementioned products will be exempted from income tax for a period of five years commencing from Jan 1, 2013," it added.
On the company's prospect, the Group expects revenue in US dollar to remain flat for the financial year ending Dec 31, 2016 in line with the volatile economic condition.
"Nevertheless, the Group is confident that we will remain profitable and maintain a strong balance sheet," the note added.
Shares in Uchi Technologies closed one sen or 0.59% lower at RM1.70 today.
UCHITEC (7100) - Uchi Technologies' 1Q net profit jumps 30.8% on stronger US dollar
http://www.theedgemarkets.com/my/article/uchi-technologies-1q-net-profit-jumps-308-stronger-us-dollar
