Tag: Genetec Technology Bhd

Genetec maintains profitability in Q3FY2025 on higher revenue

Core clients and order fulfilment support higher top-line performance, Short-term margin impacted by one-off, upfront expenses for new project

Key Financial Performance Highlights for Q3FY2025:

  • Group’s total revenue for the quarter jumps to RM75.1 million, with e-mobility and energy storage segments as primary contributors, followed by electronics
  • Performance for the quarter supported by prompt execution of outstanding orders from FY2024 and progress on new scopes secured within existing client base
  • Both PBT and PAT stand at RM3.2 million for the quarter under review
  • GP, PBT, PAT, and PATAMI margins recorded at 11.6%, 4.3%, 4.3% and 1.1% respectively

Technology leader in providing turnkey, intelligent manufacturing automation solutions, GENETEC TECHNOLOGY BERHAD (Genetec or the Company), today announced its financial results for the third quarter ended 31 March 2025 (Q3FY2025). The Company reported a jump in their revenue to RM75.1 million, on par with the preceding year-on-year revenue levels, supported by the delivery of outstanding and new orders across its core client base. Gross Profit (GP) for the quarter came in at RM8.7 million with both profit before tax (PBT) and profit after tax (PAT) at RM3.2 million, and profit after tax and minority interests (PATAMI) at RM0.8 million. GP, PBT, PAT, and PATAMI margins stood at 11.6%, 4.3%, 4.3% and 1.1% respectively.

While the Q3FY2025 revenue marked a return to revenue levels previously seen in FY2024, profit margins and PAT for the quarter fell compared with the previous quarter’s PAT of RM6.3 million. The Company noted that this was due to several deliveries in the quarter involving new scopes which involved one-off, non-recurring expenses. Genetec expects margin to normalise in upcoming quarters.

Managing Director and Co-founder of Genetec, Chin Kem Weng commented, “Our top-line performance reflects a pickup in project execution and a healthy pipeline on the back of our ongoing client engagement. The margin dip this quarter is temporary, contributed by one-off expenses tied to the new project scopes and are not recurring. As such, we are confident that we will see a recovery in the margins in the coming quarters as project maturity and margin discipline for the new scopes improve. Genetec’s focus remains on deepening our partnerships with clients in key sectors like electric vehicle (“EV”), automotives, and energy storage, while we continue to seek meaningful diversification.”

Amid the ongoing shifts in global trade dynamics and supply chain strategies, Genetec sees structural tailwinds supporting its growth trajectory. As manufacturers reassess production footprints and strengthen operational resilience, there is an upward demand for flexible, cost-competitive and reliable high-quality automation solutions. Genetec’s Malaysia-based production model, combined with a proven international track record, deep technical expertise, and agile manufacturing capabilities, positions the Company well to support clients adapting to these changes.

The Company remains focused on deepening its engagement with existing customers while exploring opportunities to broaden its client base. In addition to pursuing new scopes within existing clients’ operations, Genetec has actively participated in several international exhibitions and industry events in recent months, which have generated encouraging business leads. These engagements mark early steps toward potential entry into new industries and segments, in line with the Company’s longer-term strategy to diversify and grow.

Genetec is also actively managing its current production load while progressing its EPIC plant expansion, scheduled for completion in early 2026. The new facility will significantly increase floor space and technical capabilities, supporting Genetec’s ability to deliver on multiple high-value projects simultaneously.

“We remain focused on timely order execution, quality and cost control, and supporting our clients in a rapidly evolving industrial and technological environment. With steady project momentum, a growing base of client engagements, and strategic expansion into new sectors, we are cautiously optimistic about the road ahead. We believe Genetec is well-positioned to build on this foundation for long-term growth,” Chin concluded.

With ongoing execution across key client projects and growing interest from new industries, Genetec continues to position itself as a trusted global partner in automation.

About Genetec Technology Berhad
Genetec Technology Berhad is a public listed company on the Main Market of Bursa Malaysia Securities Berhad (Stock code: 0104) and a global leader in providing customised, turnkey smart factory automation solutions. With a strong international footprint, it serves a diverse range of industries including electric vehicle (EV), e-mobility and energy storage, automotive, hard disk drives (HDD), consumer electronics, appliances, and pharmaceuticals.

For more information please visit: https://genetec.net/.

Genetec maintains stable and profitable performance on a lower Q1FY2025 revenue

Technology leader in providing turnkey, intelligent manufacturing automation solutions, GENETEC TECHNOLOGY BERHAD (“Genetec” or the “Company”), announced its financial results for the first quarter of its new financial year (“Q1FY2025). Despite the lower Year-on-Year (“YoY”) revenue, Genetec showcases its resilience with the continued profitability and high-double digit margins.

The Company recorded revenue of RM40.2 million and gross profit (“GP”) of RM7.3 million for its Q1FY2025 ending 30 September 2024. It also reported profit before tax (“PBT”) of RM4.4 million, profit after tax (“PAT”) of RM4.1 million and profit after tax and minority interest (PATAMI) of RM4.8 million. Genetec continues to maintain double-digit margins for its GP, PBT, PAT and PATAMI of 18.2%, 10.9%, 10.2% and 11.9%, respectively.

Genetec acknowledged that the last quarter has been challenging for the business which it believes was mainly attributed to policy uncertainties from the client’s operating markets. With the conclusion of the U.S. Presidential election and European policy developments, particularly on inflation, import tariffs, and decarbonisation, there is a sense of relief and clarity, and companies are moving forward with their capital expenditure with greater certainty.

The Company, leveraging its expertise in customised automation technology and project execution, continue to work closely with its clients to deliver tailored solutions aimed at enhancing manufacturing automation, improving efficiency and increasing production yield for its clients. With its strong track record, Genetec is confident in its ability to continue to build trust and secure recurring business from its clients. Its high client retention rate stands as a testament to its exceptional performance and has been a key factor in the Company’s success. This strong foundation enables the Company to broaden its scope and product offerings with other divisions within the organisation of its existing clients to grow revenue over the long-term. At the same time, the Company’s business development team continue to explore new opportunities in new markets and industries, leveraging on its extensive experience and proven success working with leading international and reputable clients.

Genetec’s Battery Energy Storage System (“BESS”) business is slowly gaining traction as it executes smaller-scale but strategically significant projects in both domestic and international markets. The Company remains confident that its execution capabilities and international track record will position Genetec favourably. Market developments such as the government’s recently announced Corporate Renewable Energy Supply Scheme (CRESS) through interest in pairing BESS technology with solar projects, will also support demand for BESS moving forward, and is a step in achieving 70 percent renewable energy in the capacity mix by 2050[1].

Moving forward, Genetec remains committed to its strategy and focus on operational efficiency, strict cost management. With its low gearing levels and recent sale of subsidiary CLT Engineering Sdn Bhd to add to its already strong cash position, Genetec is positioning itself to ramp up operations in the coming months.

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 its global customers in the Electric Vehicle (EV), Energy Storage, 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

[1] Source: Suruhanjaya Tenaga – Guidelines for CRESS

Genetec’s Consistent Performance Delivers Higher Overall Margins in Q4FY2024

Technology leader in providing fully customised, intelligent manufacturing automation solutions, GENETEC TECHNOLOGY BERHAD (“Genetec” or the “Company”) recorded another consistent and solid quarter performance, maintaining a healthy momentum with a 7.5% year-on-year YoY increase in revenue for the quarter to RM70.5 million from RM65.6 million in Q4FY2023. Genetec’s PBT and PAT rose to RM19.1 million and RM17.7 million or by 40.4% and 59.5% respectively, for the quarter under review versus RM13.6 million and RM11.1 million a year ago.

On the overall, the Company’s solid performance for the quarter saw an improvement across all key financial indicators due to continued costs and operational efficiency that allowed the flow through of its top line to boost bottom-line numbers. Performance highlights for the quarter include, a 33.0% gross profit (“GP”) margin versus 29.0% in the preceding year reflecting a 4.0% YoY increase, a 27.1% PBT margin versus a 20.7% margin in Q4FY2023, and a PAT margin of 25.1% versus 16.9% in the preceding year.

Chin Kem Weng, Co-founder and Managing Director of Genetec, commented, “Despite ongoing market volatility, uncertainties and concerns especially in the automotive, Electric Vehicle (“EV”), and renewable energy (“RE”) sectors, Genetec has been consistent in our performance. This is due to the Group’s ability to convert our opportunities to orders, especially in securing recurring orders from existing clients. Our high client retention rate is also a key factor to our success and in building our pipeline. Our teams have been and will continue to work closely with our clients to improve on current solutions, as well as to collaborate on new opportunities with other divisions within our client groups to grow our revenue over the long-term.

The EV and Energy Storage (“ES”) segments remain Genetec’s primary revenue contributors and are expected to anchor our earnings prospects in the coming quarters. We are however, actively looking to diversify our revenue sources within these segments to cater to different areas within automotive manufacturing. As our revenues normalise over time, we are focused on increasing cost efficiencies from recurring orders, whilst ensuring quality delivery across all our projects.”

The Group remains confident in its position as a key solutions provider for manufacturing automation for its key clients in the automotive industry that serve the EV and plug-in hybrids (“PHEV”) platforms. To remain competitive, Genetec is constantly enhancing its capabilities and solutions to cater to either platform. At the same time, the Group is engaging closely with its clients and the industries to remain at the forefront of development and planning.

In closing, Chin highlighted his optimism on the prospects for the RE industry. He added, “Growth for RE storage solutions are expected to rise in tandem with the need for clean energy sources as the world continues to replace fossil-based energy with RE sources for industrial, commercial and residential purposes. The most immediate shift is in the transport system where we see efforts to improve the local and international charging infrastructure for EVs especially. From the manufacturing automation perspective, autonomous robotics and software-defined automation are poised to revolutionise industry operations. As a result, Genetec anticipates an increase in demand for our key solutions in automation and energy storage as clients continue to execute their production plans.”

At the end of the quarter, Genetec’s earnings per share (“EPS”) stood at 2.21 sen (basic) compared to 1.50 sen (basic) in Q4FY2023.

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/.

Genetec Powers ahead with Steady Growth in Q2FY2024

Focuses on building industry footprint and capturing opportunities in the renewable energy segment
Key Financial Performance Highlights for Q2FY2024:

  • Strong and steady YoY performance recording a 2.4% revenue increase to RM72.4 million, driven by increased demand in its electric vehicle and energy storage segments.
  • Margins remain steady in the double-digit territory
  • PBT for this quarter stands at RM18.7 million, with a margin of 25.8%
  • PAT for this quarter stands at RM17.4 million, with a margin of 24%

Technology leader in providing fully customised, intelligent manufacturing automation solutions, GENETEC TECHNOLOGY BERHAD recorded another strong quarter for their second quarter financial year 2024 (Q2FY2024). The Company registered a total revenue of RM72.4 million, up by 2.4% year-on-year (YoY), driven by increased orders in the electric vehicle (EV) and energy storage segment, demonstrating continued business resilience and growth momentum. Genetec’s profit before tax (“PBT”) and profit after tax (PAT) stood at RM18.7 million and RM17.4 million respectively for the quarter under review.

The Company delivered a high gross profit margin of 32.0% but noted a 12.4% decrease compared to the corresponding quarter of the preceding year (Q2 FY2023). Genetec’s margins remained steady, in the high double digits, demonstrating the Company’s continued cost discipline, rigorous management with regards to their project and time management, supply chains and delivery.

The EV and energy storage segments continues to be the significant contributor to the Company’s revenue performance, emphasising the success and impact of their offerings in these segments and strong customer support. Moving forward, the Company remains committed to capitalising this strength while actively seeking growth opportunities across other segments. At the end of the quarter, Genetec’s earnings per share (“EPS”) stood at 2.41 sen (fully diluted) compared to 2.30 sen (fully diluted) in Q1 FY2024.

Co-founder and Managing Director of Genetec, Chin Kem Weng emphasised, “Our current progress and strong pipeline indicates that we are on track with our plans for the year. We have been working very closely with our partner to capture opportunities in the renewable energy (RE) segment through our Battery Energy Storage System (BESS), MYBESS. At the same time, Genetec is deepening and broadening our collaboration with key clients to ensure we continue to be their go-to supplier for their automation needs, and top-of-mind when it comes to new tenders and product development. We have also participated in roadshows internationally and will be showcasing MYBESS at the COP28 UAE in Dubai.”

On 27 October 2023, Genetec completed its transition from the ACE Market to the Main Market of Bursa Malaysia, marking another key milestone for the Company. “By becoming a Main Market constituent, we hope to improve our visibility and access to capital as we continue to grow the business. At the same time, we are working hard to advance our solutions and MYBESS. To date, we have rolled out MYBESS 2.0, a smaller form factor version for more efficient use of limited space. MYBESS 3.0 is in progress, which will incorporate artificial intelligence (AI) in the BESS, offering customers greater intelligence and convenience in managing and monitoring the health of the battery over time, optimising performance or damage prevention, to proactive servicing to ensure optimal performance,” Chin added.

Globally, the shift towards EVs is gaining momentum. The definitive shift towards zero and lower carbon emissions solutions for both retail and commercial transport and energy sources, across different businesses and countries, will continue to drive demand for solutions in eMobility and energy storage. 

“As more policies and incentives relating to EVs are introduced to accelerate the adoption of EVs or lower emission vehicles, Genetec is strategically positioned to capitalise on these trends. We are working closely with government agencies and are actively pursuing new ventures with global clients, engaging in discussions and developments that can yield revenue and exciting new projects for the Company,” he concluded.

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 since 2005 and successfully transitioned to the Main Market of Bursa Malaysia Securities Berhad (Stock code: 0104) on 27 October 2023. 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/ .