Tuesday 27 Feb 2024
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KUALA LUMPUR (Jan 26): Automation solutions provider Genetec Technology Bhd registered its best-ever quarterly net profit of RM18.28 million for its third quarter ended Dec 31, 2021 (3QFY22), 20.56 times from a mere RM889,000 last year on the back of higher sales volume and improved operational efficiency.

In its quarterly report released on Wednesday (Jan 26), Genetec reported that revenue for its third quarter had almost doubled by 98.5% to RM65.26 million from RM32.91 million a year prior.

Earnings per share (EPS) had also correspondingly leaped 17.29 times to 35.83 sen from 2.06 sen.

Despite its breakthrough performance, Genetec did not declare any dividend for the quarter.

Compared with its immediate preceding second quarter ended Sept 30, 2021 (2QFY22), the group’s net profit was 12.1% higher from RM16.31 million while its revenue and EPS were 10% and 11.1% higher from RM59.31 million and 32.35 sen previously.

For its nine months period ended Dec 31, 2021 (9MFY22), Genetec’s net profit soared 29.72 times to RM42.77 million from RM1.44 million a year prior while revenue also doubled to RM164.86 million from RM84.01 million.

EPS for the nine months period had also jumped 25.1 times to 83.84 sen from 3.34 sen.

In a separate statement on Wednesday, Genetec said it will continue to progress with its plans and have on Jan 11 concluded a 12-for-one bonus issue announced on Oct 25, 2021 by listing 629.5 million shares on Bursa Malaysia’s ACE Market.

“Looking ahead, we continue to build on the electric vehicle (EV) and energy storage division and expect it to remain a significant and growing contributor to our overall performance.

“This growth will be driven by regional and worldwide demand as countries and businesses step up their efforts towards achieving the zero-emissions target set for 2050.

“Industries immediately impacting our business are those in transport and energy, both retail and industrial, as everything from day-to-day energy needs for both retail and commercial, heavy industry vehicles and machinery, public transport to e-scooters turn electric,” the statement wrote on the industry’s outlook.

The automation solutions provider also added that it is building on the momentum gained by pointing towards its Jan 11 announcement of a memorandum of understanding signed with Thailand-based Asia Precision Public Co Ltd to diversify its client base and growth strategy through greater exposure to the Thai and Asean markets.

Plans are in the works to collaborate and conduct a feasibility study in relation to the potential development of a factory automation facility for energy storage systems in Thailand. The study will include but not be limited to the economic, financial, technical, and legal feasibility for the most appropriate structure and details of the project, according to the statement.

Meanwhile, Genetec said it will remain cautiously optimistic but vigilant as businesses and economies continue their fragile recovery after being battered down over the two-year pandemic.

“Adoption of technologies and automation across different industries are expected to continue as businesses seek greener solutions, to greater efficiencies and reliability in their production lines.

“The knock-on effect of technology adoption is the demand for storage, data, and intelligence, which will drive the potential of the global hard disk drive market. Genetec expects growth for the segment to continue by 5.11% for the period of 2021 to 2026 due to data storage requirements, the booming laptop market and digitalisation,” the statement highlights.

The group also said in its quarterly report that it is set to consistently upgrade its infrastructure as well as the technical expertise of its personnel to provide a well-equipped business support landscape to the existing and potential worldwide customers while invariably maintaining its competitiveness and securing its position within the dynamic global market environment as one of the key players in the EV market.

At the time of writing, Genetec shares were 9.4% or 24 sen higher at RM2.80, valuing it at RM1.91 billion while trading at a price-earning ratio of 37.57 times based on its last 12 months' EPS of 71.33 sen.

Edited ByLam Jian Wyn
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