KUALA LUMPUR (Feb 27): Greatech Technology Bhd (KL:GREATEC) rose sharply in early Friday trade as analysts lauded its earnings visibility from its improved order book.
The counter hit a high of RM2.23 during trading before closing 14 sen or 7.11% higher at RM2.11, giving the group had a market capitalisation of RM5.31 billion. Some 45.1 million shares changed hands, making it one of the most actively traded stock on the exchange on Friday.
The rally came despite the group reporting softer results for the fourth quarter ended Dec 31, 2025 (4QFY2025). Net profit fell to RM5.07 million from RM51.62 million a year earlier, while revenue declined to RM170.73 million from RM205.84 million previously.
Analysts cited that the results were ahead of expectations and signalled improving earnings visibility going forward.
In a research note, AmInvestment Bank said Greatech’s order book rose 44% quarter-on-quarter to RM1 billion, driven largely by data centre projects, which now account for about 50% to 55% of outstanding jobs.
The research house expects the order book to reach a new high of about RM1.5 billion in the next quarter, supported by an estimated RM400 million in more data centre-related contract wins and segmental contributions, which gives earnings visibility for the next two years.
“This marks a clear pivot from being seen mainly as a solar and e-mobility proxy to a data centre-driven name, with scope spanning power modules, power networking and cooling systems,” said AmInvestment Bank.
Meanwhile, Phillip Capital said in a separate note that Greatech exceeded its estimates on the back of a lower-than-expected effective rate but noted that the group’s core net profit declined by 24% to RM110.4 million year-on-year due to weaker margins and higher depreciation.
It did caution that although its order book visibility is strong, Greatech faces production floor constraints and would need to lease additional factories to support operations.
Bloomberg data showed nine research houses on its counter with seven ‘buy’ calls, which include AmInvestment and Phillip Capital’s ratings, and two ‘hold’ recommendations. The average 12-month target price is RM2.47.
Phillip Capital raised its target price for Greatech to RM2.37 from RM2.30 previously. It also raised its earnings per share forecasts up by 2% for FY2026 and 3% for FY2027, citing improved execution and revenue recognition prospects.
AskEdge data showed the company currently trading at a price-earnings ratio (PER) of 37.1 times, which is higher than most peers where the ratio is applicable (not loss-making or insufficient data).
The PER is at the lower end compared to its historical valuation in recent years.