KUALA LUMPUR (Nov 27): Genetec Technology Bhd (KL:GENETEC), whose share price tumbled to a more than three-year low at end-October, rebounded strongly over recent weeks.

On Wednesday alone, the stock surged 29.5 sen or 33.71% to close at RM1.17, its highest in three months. The stock's rally added RM231.54 million to Genetec’s market capitalisation, which now stands at RM913.11 million. 

Genetec’s trading volume for the day also jumped to 146 million shares — the highest in nearly four years.

The share price has climbed 57% in three weeks since Nov 5, bouncing back from the low of 68.5 sen.

Net profit for the first quarter ended Sept 30, 2024 (1QFY2025) was RM4.77 million, on the back of RM40.20 million revenue. There are no year-on-year comparative figures as the group has changed its financial year end from March 31 to June 30.

Compared with the preceding quarter ended June 30, 2024, Genetec’s net profit declined 53% from RM10.16 million, as revenue dropped 21.9% from RM51.49 million.

CIMB Securities has raised Genetec’s target price to RM1.70 from RM1.50 previously after the quarterly results, Bloomberg data showed.

Shares in Genetec, however, have fallen 54.11% year-to-date, owing to slower order replenishment due to customer caution amid US election uncertainty and potential global economic slowdown.

In its result announcement, Genetec said the group believes the “period of uncertainty” is over, and its clients can now focus on executing their plans with the conclusion of the US presidential election.

“As the new administration takes office, we anticipate clearer policy guidance, which we view positively for the group. Projects which were put on-hold previously have now continued and we are busy catching up on those projects, while at the same time we have received many new requests for proposals (RFPs) from our clients,” it said in the results announcement.