Tag: Genetec Technology Berhad

Genetec Sets the Stage for Higher Growth Following a Strong Q3FY2024 Performance

Timely execution and delivery of high-quality projects, boosted by new products and business development efforts ramps up momentum for its electric vehicle and energy storage segments

Key Financial Performance Highlights for Q3FY2024:

  • Strong RM76.9 million revenue, with margins jumping to high double-digits.
  • PBT for the quarter stands at RM25.2 million, with a margin of 32.7%.
  • PAT for the quarter stands at RM22.9 million, with a margin of 29.8%.

Technology leader in providing fully customised, intelligent manufacturing automation solutions, GENETEC TECHNOLOGY BERHAD (Genetec or the Company) recorded another strong quarter for their third quarter financial year 2024 (Q3FY2024), continuing the strong business and execution momentum highlighted at the beginning of the FY2024. The Company recorded a higher revenue vis-à-vis the preceding quarter, with all major financial indicators showing significant double-digit growth. This is notable despite the year-on-year (YoY) decrease in revenue for the quarter to RM76.9 million from Q3FY2023’s RM85.1 million. Genetec’s profit before tax (PBT) and profit after tax (PAT) stood at RM25.2 million and RM22.9 million for the quarter under review versus RM13.9 million and RM12.5 million a year ago.

The Company delivered a high gross profit margin of 46.8%, which reflects a 16.2% increase on a YoY basis. This increase is attributed to higher margins in its product mix for the quarter under review. Genetec reiterated that the lower turnover for Q3FY2024 was not reflective of the pipeline strength or sentiment, but the project progressions and billings, as is typical in industries with large project values. The Company said the Electric Vehicle (EV) and Energy Storage segments continued to maintain its dominance as Genetec’s primary revenue stream, contributing nearly 100% of total revenue, accumulated over the last nine months.

Genetec Co-founder and Managing Director Chin Kem Weng highlighted, “Our efforts in 2023 are paying off as Genetec continues our momentum into New Year 2024. As a Group, the teams have been working hard on our product and business development to secure our pipeline and to build new leads across all our business segments, especially in renewable energy with MYBESS. As such, our performance for this quarter remains strong and consistent with our outlook at the beginning of our financial year 2024 (FY2024). In addition, all key financial metrics show double-digit growth, reinforcing the Group’s discipline and management of our supply chain. Moving forward, we are optimistic on the Company’s performance and the timelines in translating the projects secured to be reflected in the remaining quarters for the financial year ending 2024.”

Chin emphasised that, countries globally are ramping up efforts in RE although the timeline of the shift will be for the long-term. Likewise for Malaysia, the shift to RE and EVs continue to gain traction due to increasing pressure from governments and consumers. “The S&P Global Commodity Insights forecast nearly USD 800 billion in clean energy investments for 2024, which is 10% – 20% higher than 2023 levels[1]. Following many years of policy discussions and framework launches, 2024 is a year of execution. This is a time for infrastructure planning, spending and set up to support the shift away from fossil fuel to electric. Companies in the ecosystem, especially EVs are ramping up their production capacities to cater to future demand. As Genetec is in the business of capital expenditure (CAPEX), we have been working hard to position ourselves as the go-to end-to-end turnkey solutions provider for intelligent automation for EV and as of 2023, for RE.”

Genetec added that it will continue to capitalise on such factors while also actively exploring other growth opportunities. At the end of the quarter, Genetec’s earnings per share (“EPS”) stood at 3.04 sen (fully diluted) compared to 2.41 sen (fully diluted) in Q2FY2024.

About Genetec Technology Berhad
Genetec Technology Berhad is a technology leader in providing customised full turnkey smart factory automation manufacturing lines. It is a public company listed on the Main Market of Bursa Malaysia Securities Berhad (Stock code: 0104). Its principal business focus is in the provision of high-quality, responsive and cost-effective designs, as well as the manufacturing of automated industrial systems, equipment and value-added services for our global customers in the Electric Vehicle (EV), Automotive, Hard Disk Drive (HDD), Consumer Goods and Healthcare sectors. For more information please visit: https://genetec.net/.

Issued by: Narro Communications on behalf of Genetec Technology Berhad

For media enquiries on Genetec Technology Berhad, please contact:
Imelia Kyra
Tel: +6017 848 0977
Email: imelia@narrocomms.com

[1] Source: S&P Global Commodity Insights 2024

Genetec’s Q2FY2023 Performance Remains on Track

Consistent performance with steady growth in the EV, energy storage and hard disk drive segments

Key Financial Performance Highlights for Q2FY2023:

  • Strong YoY performance, reflecting double digit growth across all key indicators, higher margins
  • Contributions from key segments marginally impacted due to deferment of RM5 million hard disk client project but has been delivered
  • QoQ PBT surged to RM28.0 million, rising by 44.3% compared to preceding quarter
  • PAT at RM25.7 million, up by 57.7%, due to normalising cost of raw materials, continued disciplined cost management and operational efficiency

Technology leader in providing fully customised, intelligent manufacturing automation solutions, Genetec Technology Berhad announced their quarterly performance to date for their second financial quarter for the financial year ended 31 March 2023 (Q2FY2023). The Company recorded a surge in its profit after tax (PAT) of RM25.7 million representing a 57.7% jump compared to RM16.3 million registered for the corresponding quarter of the preceding year due to higher revenue and managed cost.

Genetec registered RM28.0 million in profit before tax (PBT) for the quarter under review, which is 59.1% higher than the PBT of RM17.6 million recorded for Q2FY2022 while revenue of RM70.7 million is 19.2% higher than the RM59.3 million posted in Q2FY2022. Earnings per share stood at 3.59 sen (fully diluted) in the same quarter compared to EPS of 2.33 sen in the corresponding quarter.

Genetec highlighted, “On the macro level, 2022 continues to be an exciting year. We have been building on our momentum and diversifying our portfolio in electric vehicle (EV) and energy storage segments. These efforts are yielding results which will come through in the coming quarters. All segments in our portfolio continue to grow with segment contributions remaining consistent with the preceding quarter. Genetec remains focused to build on and deepen our share-of-wallet with existing clients. Efficiency, quality and flexibility continue to be key whilst we actively participate in new bids to expand our client list. With the additional 100,000 square feet (sf) floor space, we are adding capacity to cater to our growing pipeline.”

Their recent exclusive collaboration with diversified infrastructure and energy conglomerate, Citaglobal Berhad will see Genetec supplying end-to-end battery energy storage management systems (BESS) solutions to designated project sites in different states across Malaysia over a multi-year period. The Company’s role covers research and development, design and build and on-site installation and maintenance.

“Looking ahead, the world’s efforts to halve its carbon footprint by 2030 and achieve its net zero carbon target by 2050 will drive energy convergence and investments in renewable energy (RE) technology. New energy storage capacity is expected to be added globally between 2022 and 2030 as companies and countries transition towards clean or RE. Expectations are for RE to provide 65% of the world’s total electricity supply by 2030, with a massive 90% decarbonisation of the power sector by 2050[1]. By the end of the decade, United States and China are expected to continue to be the two biggest markets, accounting for more than half of all RE storage installations worldwide[2]. On the EV sector, we will continue to expand our performance and increase our capacity to achieve new heights”, highlighted Genetec.

About Genetec Technology Berhad
Genetec Technology Berhad is a technology leader in providing customised full turnkey smart factory automation manufacturing lines. It is a public company listed on the ACE Market of Bursa Malaysia Securities Berhad (Stock code: 0104) since 2005. Its principal business focus is in the provision of high-quality, responsive and cost-effective designs, as well as the manufacturing of automated industrial systems, equipment and value-added services for our global customers in the Electric Vehicle (EV), Automotive, Hard Disk Drive (HDD), Consumer Goods and Healthcare sectors. For more information on Genetec, please visit www.genetec.net.

[1] Source: Energy Outlook 2023, United Nations https://www.un.org/en/climatechange/raising-ambition/renewable-energy
[2] Source: Global Energy Storage Market to Grow 15-Fold by 2030. https://tinyurl.com/mw6tzuk6

Genetec’s Quarterly Performance Jumps by 126%

Technology leader in providing fully customised, intelligent manufacturing automation solutions, Genetec Technology Berhad continued its performance momentum into the new financial year, recording a surge in profit after tax (PAT) of RM18.6 million representing a 126.8% jump compared to RM8.2 million registered for the corresponding quarter of the preceding financial year (Q1FY2022).

Genetec’s recorded a profit before tax (PBT) of RM19.4 million higher by 31.1% compared to RM14.8 million posted in the preceding quarter of 2022 (Q4FY2022), contributed by higher revenue from the e-mobility, electric vehicle (EV) & energy storage (RM60.9 million up 25.8%) and hard disk drive (HDD) segments (RM12.2 million up 20.8%) respectively.

PAT was boosted on the back of strong revenue growth momentum for the quarter at RM73.2 million, an increase of 81.6% from RM40.3 million for the corresponding quarter (QoQ) and up 24.7% from RM58.7 million for the preceding quarter (Q4FY2022). Earnings per share stood at 2.68 sen (fully diluted) in Q1FY2023 compared to 1.18 sen QoQ. Gearing ratio dropped from 0.41 to 0.34 times from the preceding quarter, whilst cash and cash equivalents remains healthy, providing the Company with stretch room to execute its growth activities and plans ahead of the fresh orders and industry demand growth.

Genetec commented, “The momentum in the EV and energy storage continues to grow, driven by consumer demand and supportive policies as the world pivots towards renewables in the race to combat climate change. Global sales of EV have doubled up in 2021. The total number of EVs have grown steadily in 2022, with with 2 million sold in the first quarter, up 75% from the same period in 2021[1]. This shift to electric heralds the beginning of a new ecosystem which Genetec is part of. In addition to vehicles, countries and companies will need to roll out the charging and servicing ecosystem to support this new generation of transport vehicles. In tandem with global digitalisation, the needs for the building blocks such as energy and data storage will continue to rise. This is where Genetec is strong and we will continue to improve on our offerings through research and development whilst deepening our share of market in the e-mobility, energy storage and HDD segments. Meanwhile, we remain vigilant of the macroeconomic headwinds and supply chain challenges and will continue to adopt a prudent stance in our cost and financial management.”

Genetec’s also highlighted that its land acquisition from Utusan Melayu (Malaysia) Berhad (UMMB) in Bandar Baru Bangi, comprising a parcel of land of 6.348 hectares or 683,293 square feet (sq ft) and the buildings within the said area, is on track with the targeted completion set for the second quarter ended 30 September 2023 (Q2FY2024) and will focus their attention on deepening their business relationships with clients and suppliers, talent building and retention ahead heightened competition and macro headwinds globally.

[1] Source: Global EV Outlook 2022 https://tinyurl.com/GlobalElectricVehicle-Outlook

About Genetec Technology Berhad

Genetec Technology Berhad (‘Genetec’ or ‘the Group’) is a technology leader in providing customised full turnkey smart factory automation manufacturing lines. It is a public company listed on the ACE Market of Bursa Malaysia Securities Berhad (Stock code: 0104) since 2005. Its principal business focus is in the provision of high-quality, responsive and cost-effective designs, as well as the manufacturing of automated industrial systems, equipment and value-added services for our global customers in the Electric Vehicle (EV), Automotive, Hard Disk Drive (HDD), Consumer Goods and Healthcare sectors. For more information on Genetec, please visit www.genetec.net.

Genetec Scales New Heights with Highest Annual Profit to Date

Technology leader in providing fully customised, intelligent manufacturing automation solutions, Genetec Technology Berhad announced its best annual performance to date for the financial year ended 31 March 2022 (FY2022). The Company recorded RM58.1 million profit after tax (PAT) up 1,420.5% from a loss of RM4.4 million in the preceding year. Annual revenue stood at an all-time high at RM223.6 million, up by 130.3% versus RM97.1 million for the period, driven by the electric vehicle (EV) and energy storage segments. Correspondingly, earnings per share (EPS) stood at 7.90 sen for the period, up by 1,395.1% from -0.61 sen.

For the fourth quarter year ended 31 March 2022 (Q4FY2022), Genetec’s PAT stood at RM14.0 million, an increase of 333.3% compared to the loss of RM6.0 million in the corresponding quarter for FY2021 (Q4FY2021). Quarter on quarter (QoQ) revenue stood at RM58.7 million, up by 348.1% versus RM13.1 million for the corresponding quarter.

In comparison with the preceding quarter, Genetec’s Q4FY2022 PAT came in lower by 28.6% compared to RM19.6 million posted in the preceding quarter due to the shorter operating period. The Company continued to maintain a high level of discipline in cost management to moderate the effects of the shorter quarter. Revenue for Q4FY2022 stood at RM58.7 million, a decrease of 10.1% compared to RM65.3 million of the preceding quarter.

Genetec also announced the approval to proceed with a property acquisition from Utusan Melayu Malaysia Berhad (UMMB) in Bandar Baru Bangi. The said property comprises a parcel of land of 6.348 hectares or 683,293 square feet (sq ft), and buildings within the said area with a total gross floor area of 301,509 sq ft and will be purchased at RM53 million.

Genetec said, “Through this acquisition, we aim to consolidate most of our design and development, machining centers and machine assembly in Bandar Baru Bangi to increase further capacity to cater for future demand.

On the overall, the Electric vehicle (EV) and energy storage segments remained dominant contributors to Genetec’s overall revenues with expectations for said segments to grow further in the coming quarters. Genetec commented, “Sales of electric cars worldwide hit 6.6 million in 2021, almost doubling from the previous year. For context, in 2012, only 120,000 electric cars were sold. Today, the same number is sold every week[1]. Due to the population growth and increase in affluence, there is a shift to the current technology driven by the global adoption of renewable energy solutions. Most recently, the European Union (“EU”) announced plans to increase efforts in solar and wind power to hasten the region’s shift to green energy. To achieve this, the EU’s proposal is to allocate EUR210bn (RM987 billion) over the next five years to phase out fossil fuels such that 45% of their energy mix should come from renewables by 2030. This is an advance on the current 40% target suggested less than a year ago[2] and reinforces the seriousness of the move towards electric and renewables. It also amplifies the urgency of the need for more focus and resource allocation to these segments.”

On their part, Genetec is also ramping up their team strength. In 2021, the Company increased their staff strength by 100 to support the increased workload and job orders. “Our investments have always been in Malaysia. Likewise, all our staff are local. We believe in hiring and training local talent and this is evident in our staff force. From our founding members, senior leadership, to staff, most of our staff joined us fresh out of university or technical school and have risen within the ranks to manager and senior managerial levels. The staff stability is crucial to ensure continuity and to provide assurance to our clients that we have the right people and experience to consistently deliver quality products and service.”

Genetec concluded, “It has been an eventful, challenging but rewarding year with many new developments and milestones. Genetec has been working hard to ensure we deliver on our orders in a timely manner, especially given the ongoing geopolitical and economic headwinds. We are also working closely with our clients to ensure we remain a key and important partner in supplying their automation solutions. We are also sharpening our focus on managing our supply chain operations, from planning and demand forecasting, sourcing, materials management to logistics. Working closely with our suppliers is critical to mitigate possible supply-chain disruptions or delivery challenges that will affect our ability to deliver our orders in a timely manner.”

“In the meantime, we remain optimistic that our efforts to deepen our client’s share-of-pocket will yield results in the coming quarters. Our pipeline remains robust, backed by the accelerating demand for EVs across major markets worldwide. Moving forward, Genetec remains focused on growing our workforce and deepening their knowledge and skillsets, especially in EV and energy storage. We are also building on our capacity to be able to take on new orders and projects from existing and new customers. We are committed to growing sustainably whilst developing new growth pathways for local talent to contribute to the progress of the local automation technology segment in Malaysia.”

[1] Source: World Economic Forum – More electric cars are now sold every week than in the whole of 2012
[2] Source: EU plans ‘massive’ increase in green energy to help end reliance on Russia

Genetec Technology Berhad: https://genetec.net/

Genetec Delivers Its Best Quarter to Date

Profit after tax jump by 2,350%, quarter on quarter
Key Financial and Performance Highlights (Q3FY2022 vs Q3FY2021):

  • Profit after tax at RM19.6 million, up by 2,350%
  • Revenue at RM65.3 million, up by 98.5%
  • Profit after tax margin at 30.0%, up by 27.6%

Technology leader in providing fully customised, intelligent manufacturing automation solutions, Genetec Technology Berhad announced their best financial quarter to date for their third quarter ended 31 December 2021 (Q3FY2022). The Company recorded a 2,350% growth on their quarter on quarter (QoQ) profit after tax (PAT) performance, with an increase of RM18.8 million for the said quarter to RM19.6 million, compared to RM0.80 million registered for the corresponding quarter (Q3FY2021) due to higher revenues and managed costs.

For the same quarter, Genetec’s profit before tax (PBT) stood at RM21.0 million which is higher by 19.3% than the RM17.6 million posted in their second quarter (Q2FY2022), due to higher sales whilst costs remained stable. Revenue for the quarter stood at RM65.3 million, an increase of 98.5% QoQ, and a 10.1% increase over the preceding quarter Q2FY2022, bringing the annual total to RM164.9 million for the 9 months ending 31 December 2022 (9MFY2022). Earnings per share stood at 34.53 sen (fully diluted) in Q3FY2022 compared to EPS of 2.06 sen in Q3FY2021.

For the nine months of the financial year ended 31 March 2022 (9MFY2022), the Company recorded 2,656% higher PAT of RM44.1 million compared to the corresponding period of the previous financial year of RM1.6 million (9MFY2021). PBT for 9MFY2022 stood at RM47.5 million, which is 2,694% higher than the PBT of RM1.7 million while revenue is 96.3% higher at RM164.9 million compared to RM84.0 million of the corresponding period.

Genetec highlighted in their announcement, “We continue to progress with our plans. Earlier this month we concluded our Bonus Issue exercise announced on 25 October 2021 with the listing of the new issue of securities or 629,503,200 bonus shares (effective 11 January 2022) on the ACE Market of Bursa Malaysia Securities Berhad. In addition to rewarding our existing shareholders and improving share liquidity, we hope to encourage greater local retail participation.

Looking ahead, we continue to build on the electric vehicle (EV) and energy storage division and expect it to remain a significant and growing contributor to our overall performance. This growth will be driven by regional and worldwide demand as countries and businesses step up their efforts towards achieving the zero-emissions target set for 2050. Industries immediately impacting our business are those in transport and energy, both retail and industrial, as everything from day-to-day energy needs for both retail and commercial, heavy industry vehicles and machinery, public transport to e-scooters turn electric.”

Genetec also cited The Economic Intelligence’s ‘Automotive in 2022’ research report outlook for global sales of new vehicles that is expected to rise by 7.5% in 2022, surpassing 2019 levels. Prospects for the global sales of new EVs will continue to soar, rising by 51%, with Asia and North America leading the recovery. Whilst new emission rules will force transport vehicle makers and businesses to make far-reaching decisions about their energy sources and fossil-fuel models, this shift is also well supported by the growing number of policies to incentivise greater efforts towards renewable energy vehicles and generation. On a corresponding topic, Nasdaq expects energy storage to potentially emerge as the hottest market of 2022 as the trends advance over the course of the year.

Building on the momentum gained, Genetec’s 11 January 2022 announcement of their Memorandum of Understanding (MoU) with Thailand-based Asia Precision Public Company Limited (APCS) signals the Company’s efforts to diversify its client base and growth strategy through greater exposure to the Thai and ASEAN markets. Plans are in the works to collaborate and conduct a feasibility study in relation to the potential development of a factory automation facility for energy storage system (ESS) in Thailand. The study will include but will not be limited to the economic, financial, technical, and legal feasibility for the most appropriate structure and details of the project.

Genetec concluded, “We continue to remain cautiously optimistic but vigilant as businesses and economies continue their fragile recovery after being battered down over the two-year pandemic. Adoption of technologies and automation across different industries are expected to continue as businesses seek greener solutions, to greater efficiencies and reliability in their production lines. The knock-on effect of technology adoption is the demand for storage, data, and intelligence, which will drive the potential of the global hard disk drive (HDD) market. Genetec expects growth for the segment to continue by 5.11% for the period of 2021 to 2026 due to data storage requirements, the booming laptop market and digitalisation.”

Please contact the below for more information:
Hakim Juraimi
Tel: +60 12-318 5410
Email: h.juraimi@swanconsultancy.biz

Genetec Q2FY2022 PAT Up by Sixfold

Company records strong Q2 performance of RM16.30 million, exceeding industry expectations

Genetec Technology Berhad (Genetec or the Company), a technology leader in providing customised full turnkey smart factory automation manufacturing lines, today announced that the Company recorded profit after tax (PAT) of RM16.30 million for the second quarter ended 30 September 2021 (Q2FY2022), which is 515% higher than the PAT of RM2.65 million registered for the corresponding second quarter ended 30 September 2020 (Q2FY2021).

Genetec also announced their proposal of a bonus issue of 661,564,800 new ordinary shares in Genetec (“Bonus Shares”) on the basis of twelve (12) Bonus Shares for every one (1) existing ordinary share in Genetec (“Genetec Share” or “Share”) held on an entitlement date to be determined later (“Proposed Bonus Issue”). The Entitlement Date will be determined and announced at a later date upon receipt of all relevant approvals for the Proposed Bonus Issue. In addition, for purposes of clarity, the actual number of Bonus Shares to be issued will depend on the total number of issued Shares on the Entitlement Date and is not intended to be implemented on a staggered basis. Further and final details will be announced upon receipt of all relevant approvals soon.

Genetec registered RM17.59 million in profit before tax (“PBT”) for the quarter under review, which is 554% higher than the PBT of RM2.69 million recorded for Q2FY2021 while revenue of RM59.31 million is 53% higher than the RM38.67 million posted in Q2FY2021. Earnings per share stood at 31.25 sen (fully diluted) in Q2FY2022 compared to EPS of 6.18 sen in Q2FY2021.

For the first-half of the financial year ended 31 March 2022 (“1HFY2022”), the Company recorded 2884% higher PAT of RM24.50 million compared to the corresponding period of the previous financial year, when the Company posted PAT of RM821,000. PBT for 1HFY2022 stood at RM26.44 million, which is 2848% higher than the PBT of RM897,000 while revenue is 95% higher at RM99.59 million compared to RM51.10 million of the corresponding period of the previous financial year.

In their announcements the Company highlighted, “It has been an eventful year. Genetec’s bonus issue proposal is part of our efforts to enhance trading liquidity of the Genetec shares, following the recent share price appreciation, as well as to reward existing shareholders on the back of the strong performance of the EV and energy storage divisions. The strong performances have contributed significantly to overall revenue amid steady demand for more sustainable modes of transport and energy. We expect the order book for the EV division to remain significant and to continue contributing to Genetec’s financial performance in the coming quarters. As countries and companies step up their transition towards more sustainable and zero emission transport and energy solutions, we are confident that this growth trajectory will continue. It is well supported by the trifecta of global regulatory frameworks, new incentives to promote the adoption of EVs, and a fast-expanding range of EVs. Meanwhile, EV models are becoming more accessible as the ecosystem grows and battery costs drop further.”

“While we have a more positive outlook as the global economy reopens amid higher vaccination rates, we remain cautious of spikes in COVID-19 infections that may result in supply-chain disruptions and affect consumer sentiment.”