Tuesday 16 Jul 2024
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KUALA LUMPUR (July 27): Genetec Technology Bhd’s market capitalisation topped RM1 billion for the first time today, after the industrial-automation specialist’s share price surged past RM20, as investors weighed the company's exposure to the global electric vehicle market.

The stock jumped 8.97% or RM1.68 to close at its all-time high of RM20.40, giving it a market capitalisation of RM1.033 billion, after 1.48 million shares were traded.

The company's share price, which settled at RM3.76 on June 4, has jumped RM16.64 or about 442% since.

Investors could have taken their cues from CGS-CIMB Securities Sdn Bhd’s recent report on Genetec.

On June 28, CGS-CIMB analysts Walter Aw and Mohd Shanaz Noor Azam wrote that Genetec is confident it can benefit from growing demand for EV vehicles worldwide.

According to the analysts, Genetec claimed it had made a breakthrough in producing smart factory automation systems for EVs, energy storage and autonomous driving in 2020.

"The group plans to ride on the structural shift in the global automotive industry from internal combustion engines towards EVs.

"Based on the Global EV Outlook 2021 published by the International Energy Agency (IEA) in April 2021, the global electric car stock reached 10.2 million in 2020 (+43% year-on-year [y-o-y]). While the global car market had dipped 16% y-o-y in 2020 due to the negative impact from the Covid-19 pandemic on the economy, global electric car sales rose 51% y-o-y to 3.1 million units.

"Under the sustainable development scenario initiatives, the IEA expects the global electric car stock to reach up to 204 million units by 2030,” the analysts wrote.

Edited ByTan Choe Choe & Chong Jin Hun
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