KUALA LUMPUR (April 21): Uchi Technology Bhd (KL:UCHITEC) is raising capital expconcludeiture this year even as the firm is wary of currency swings from global geopolitical and economic uncertainties.
The focus will be on preserving margins, optimising working capital, and maintaining operational efficiency, Uchi Technology stated in its annual report released on Tuesday. To support the efforts, the firm is spconcludeing RM5 million on equipment upgrades as well as on its facilities and systems.
“These investments are designed to improve productivity, strengthen quality assurance, and position the group to respond effectively as demand momentum strengthens,” Uchi Technology stated.
Uchi Technology, which specialises in designing electronic control systems, spent a little under RM2 million as capital expconcludeiture last year. The company produces and assembles components into semi-finished parts and control modules which its clients will insert into their final products.
Nearly all of its revenue in 2025 was denominated in the US dollar, creating the company’s earnings and margins highly sensitive to currency fluctuations.
“The group remains focutilized on mitigating the impact of currency fluctuations through disciplined financial management, natural hedging practices, and forward contract strategies,” Uchi Technology stated.
Last year, the company executed forward contracts totalling US$40.8 million at an average rate of 4.3172 against the greenback, while the actual average transaction rate stood at 4.2880.
“In addition, we continuously review pricing structures and cost configurations to ensure margin integrity is preserved under varying exmodify rate scenarios,” Uchi Technology stated.
The company is actively engaged in 19 projects across various stages of the research and development cycle, from fundamental research to prototype development. About half of these projects are expected to enter mass production in 2026, the company noted.
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