KUALA LUMPUR (May 26): Greatech Technology Bhd (KL:GREATEC) continued its share rally on Tuesday morning after it surged on Monday amid posting mixed first-quarter results.
The counter opened at RM2.74 before rising by 15 sen or 5.5% to RM2.89 on Tuesday. At the time of writing, the stock was trading at RM2.78 with 8.08 million shares changing hands. At its last price, it had a market capitalisation of RM6.99 billion.
Analysts were mixed on Greatech after it posted a 27.2% year-on-year drop in net profit for the three months ended March 31, 2026 (1QFY2026) amid margin pressure and higher operating costs.
But despite the group’s weaker earnings, analysts said its enlarged order book could support revenue visibility over the next two years.
In a research note, Phillip Capital said the automation solutions provider’s outstanding orders rose to RM1.67 billion in May from RM1 billion at end-2025, with most of the jobs slated for delivery over 2026 and 2027. Philip Capital also said that Greatech is aiming for an order book of RM2 billion by the end of 2026.
The research house said the stronger backlog should support earnings recovery in the coming quarters, and raised its target price to RM3.25 from RM2.37 while maintaining a ‘buy’ call.
It also raised Greatech’s earnings per share forecast by 22% to 23% for 2027 to 2028, while keeping a price-to-earnings ratio of 32 times based on next year’s earnings per share.
Phillip Capital noted that the company’s order pipeline remains diversified across data centres, e-mobility, semiconductor, life sciences and energy-related projects, which could help cushion sector-specific demand swings.
In a separate note, Public Investment Bank kept its ‘neutral’ rating on Greatech and said the enlarged order book improves revenue visibility, particularly as data centre-related jobs now make up more than half of outstanding contracts.
It said that Greatech is eyeing another RM500 million in fresh orders over the next three months, mainly from the e-mobility and life sciences segments. The company is also looking to deepen its presence in semiconductor manufacturing equipment and expand into India’s mobile device supply chain.
Bloomberg data shows a positive consensus from analysts, as among nine research houses covering Greatech’s counter, there are eight ‘buy’ calls and only one ‘hold’ rating. The 12-month average target price is RM3.
On the group’s 1QFY2026 performance, research houses attributed the weaker quarter mainly to narrower margins, higher staff-related expenses and increased depreciation charges.
“We deem the results as broadly within expectations, with the earnings weakness largely transitory,” said Philip Capital.
Meanwhile, Public Investment Bank noted that administrative and marketing expenses jumped more than 50% year-on-year, partly due to workforce expansion and the consolidation of Slovakia-based subsidiary Greatech Mechatronics.