KUALA LUMPUR (April 4): Shares of Greatech Technology Bhd (KL:GREATEC) ended Friday down nearly 9%, extending its decline into a third day, after analysts flagged it as one of the biggest losers among technology stocks following US reciprocal tariffs.

While Malaysia’s semiconductor sector was exempted from the reciprocal tariffs, CIMB Securities warned that the broader electrical and electronics (E&E) sector could still feel the impact, particularly automated test equipment (ATE) players such as Greatech and electronics manufacturing services (EMS) companies.

Greatech is involved in industries such as automotive and solar, offering products and services that include the development and design of automated assembly systems and customised automation solutions.

Companies like Greatech and Genetec Technology Bhd (KL:GENETEC) have significant exposure to the US market with 76%–77% of their revenue derived from the US, CIMB Securities noted. 

Public Investment Bank also flagged Greatech’s exposure to the tariffs due to its auto and solar products that are unlikely to qualify for semiconductor exemptions.

Greatech chief executive officer Tan Eng Kee said it was still too early to comment in response to a request for comment from The Edge. 

CIMB Securities said its channel checks with automation player Genetec indicate that the increase in tariffs will be absorbed by its US-based customers, minimising direct impact on Genetec.

Greatech fell as much as 17 sen or over 10% to an intraday low of RM1.39. The stock ended the day at RM1.42, valuing the company at RM3.57 billion. 

The stock began falling on Wednesday before the US announced a 24% tariff on all goods from Malaysia as part of a sweeping trade policy affecting all of its trading nations. It has since lost more than 18%, wiping out over RM800 million from its market value in just three days. 

Year-to-date, shares of Greatech have fallen over 38%.

Philip Capital slashed Greatech’s target price to RM1.80 from RM2.45, after adjusting its price-to-earnings multiple or earnings forecast to reflect the prolonged market weakness for the technology sector, but maintained its “buy” call on the stock.

Greatech has six “buy” calls and five “hold” calls, according to analysts tracked by Bloomberg. Its average 12-month target price stands at RM2.15, implying an over 24% upside.

Besides ATE players, CIMB Securities also highlighted EMS players — such as VS Industry Bhd (KL:VS) and SKP Resources Bhd (KL:SKPRES) — with exposure to the US. VS Industry and SKP Resources generate around 50% and 20% of their revenue from the US, respectively.

It said, however, that Malaysian EMS players could still outperform regional peers in countries subject to higher tariffs, like Vietnam.

Philip Capital has turned bearish on the technology sector, citing ongoing uncertainty over potential sector-specific tariffs on semiconductors, which may continue to dampen investor sentiment.

In its note, it said that deferred earnings recovery could keep valuation multiples depressed for longer, while tariff risks could cause global multinational companies to delay or reduce capital expenditure spending, heightening the risk of further order slowdowns. This led to its downgrade of the technology sector, in which Greatech operates, from “overweight” to “neutral”.