KUALA LUMPUR (May 25): Automation solutions company Greatech Technology Bhd (KL:GREATEC) jumped to a 22-month high on Monday before reporting a lower first-quarter net profit.

The lower profits were due to higher labour and staff costs from increased hiring and the acquisition of a Slovakian company in February.

The stock rose to RM2.75, its highest since July 2024, before closing at RM2.74, up 6.6% ahead of its results announcement. This values the company at RM6.89 billion. About 16.29 million shares were traded, with the stock up 73.42% year to date.

For the three months ended March 31, 2026 (1QFY2026), net profit dropped 27.2% to RM26.89 million from RM36.92 million in the previous period a year earlier. Quarter-on-quarter its net profit is up five fold from the RM5.07 million it posted for the three-months ended Dec 31, 2025, on foreign exchange gains and lower staff costs after the absence of last quarter’s bonus payments.

The group posted a lower gross profit margin for the first quarter of 25.62%, from 33.33% for the corresponding period in FY2025.  Cost of sales grew 13.86% from a year ago to RM133.14 million from RM116.93 million.

This was partly offset by foreign exchange gains of RM4.58 million from the stronger US dollar against the ringgit. 

Revenue, however, rose by 2.1% to RM178.99 million from RM175.39 million in the corresponding quarter last year. No dividend was declared.

In a bourse filing, Greatech said the increase in revenue was mainly due to contributions from its data centre segment, as well as the inclusion of the newly acquired Manz Slovakia SRO, now renamed Greatech Mechatronics Slovakia SRO, in February for €1 million cash.

The group said the gains in revenue were partially offset by weaker contributions from the e-mobility, life sciences and solar segments, as some customers delayed investment decisions toward the end of 2025.

Greatech, in its commentary on prospects, said the operating environment remains challenging due to geopolitical tensions, supply chain issues and changing US trade policies.

The group will focus on executing its order book, controlling costs and expanding its business to support long-term demand for automation and digitalisation. While short-term volatility may continue, it remains confident in its long-term outlook, supported by its engineering capabilities, a global presence and focus on innovation.

As at May 20, Greatech said its outstanding order book stood at about RM1.67 billion, which it expects to provide earnings visibility through the second half of 2027.