KUALA LUMPUR (Nov 27): Shares of Genetec Technology Bhd (KL:GENETEC) slid to their lowest in more than four years in active trade after the automation systems company sank into the red.

The latest results were unexpected and the company is now expected to make losses for at least two financial years before turning around in the 12 months ending June 30, 2027, said CIMB Securities, one of only two research houses covering Genetec.

Genetec’s ability to broaden its customer and product base nevertheless offers long-term optionality, the house noted in keeping the stock on ‘hold’.

Genetec fell as much as four sen or nearly 13% to 28 sen on Thursday, a level last seen in June 2021. At 9.30am, the stock was trading at 29.5 sen after more than 11 million shares changed hands. Based on the last price, the company is valued at RM233 million.

Shares of Genetec have declined 78% so far this year though the stock has been on a longer-term downtrend as earnings failed to meet expectations of investors and analysts. The counter has lost more than 90% from its high in 2021, a decline that erased over RM2 billion from its market value.

The latest quarter ended Sept 30, 2025 (1QFY2026) disappointed CIMB Securities, which took note of customer-requested order deferments and higher-than-expected installation and logistics costs. Revenue also declined to the company’s lowest in 18 quarters.

The research house said Genetec could be re-rated if order replenishment accelerates and margin recovery materialises or customer diversification gains traction beyond North America and Germany, two markets that together account for 100% of its order book.

Potential downside risks include slower orders with deferment of customers’ growth plans, delays in new contract awards, and appreciation of the ringgit against the US dollar, CIMB Securities said.