EV Play - Rise of Battery

Author: ChongLeeWoon   |   Latest post: Fri, 13 Aug 2021, 9:00 PM



Author:   |    Publish date:

Yesterday, the MSWG issued an open letter on Genetec. The letter is pretty pointless as usual, asking minority investors to 'exercise caution and due diligence'. Well noted thank you sir!! 

What's interesting is that the letter mentioned "Further fuelling the optimism was a non-rated report on the company by CGS-CIMB Research on 28 June".


So, how does this report look like? What is inside the report that is so sibeh geng chao powerful? 

So informative that it can fuel this Genetec to rocket from RM6 ground level to RM18 sky level and possibly charging into outer space RM40+ level?

One open secret was laid bare in the report, naked for everyone to see. 

North American EV maker with a Battery Day presentation? 

If you are still clueless by now, just Google "EV Battery Day", you're welcome.

The report gave away one closely guarded secret, that Genetec's client is none other than the number 1 global leader in EV and battery tech. Read that again. 

Analysts and fund managers have been witnessing a multitude of companies worldwide that are part of the EV supply chain double, triple their market cap as soon as they are part of the number 1 player's ecosystem. Market is paying the premium even for companies that have yet to book in any revenue. 

Look at ASX-listed Piedmont Lithium who has secured a supply contract but yet to book in revenue. 10x in 6 months!

Genetec has announced a total orderbook of approximately RM200m for FY22. So if management guidance is reliable, we whould see the numbers starting from Q1 FY22 which would be announced soon. Q1 closes end-June so usually announce results 2 months after around August. If good results maybe have a special early announcement? :P

Now, there are still investors (apart from the substantial shareholder) who are actively building positions in Genetec. Why?

Some may wonder "Wa triple already from RM6 still can cheong?" The math to go by is pretty simple.

Orderbook FY22 RM200m
Assuming net margin 20% 

= RM40m net profit

RM40m net profit x PE50 = RM2 billion market cap 
(conservative PE considering its peer Greatech trades at PE65)
RM2 billion market cap over 50m shares = RM40/share
Case study: MPI, D&O, Greatech all 5x in 1 year or less.
Is there any reason why not for Genetec if the numbers come true?
Bear in mind these numbers are only for FY22. FY23?
As soon as Genetec announces new orderbook wins for FY23 of higher value...
[ lost for words at the moment as am too excited, need to cool down to finish this post ]
What are the chances for more orders in FY23?Take a look below, the first Giga Factory by the number 1 EV leader in Europe. Not just in Europe, but in the automotive heart of Berlin, Germany.




The factory will start running by end-2021 according to the boss, to gear up to full speed in 2022

Now, the golden question is...

How many battery lines from Subang and Bangi will be needed to fill out this Battery Section of the Giga Factory?

Malaysia Boleh?? GENETEC BOLEH?? 


Share this

Related Stocks

Chart Stock Name Last Change Volume 
GENETEC 35.18 +1.98 (5.96%) 589,500 

  Be the first to like this.
cumcumshot Another con man report.
24/07/2021 11:22 PM
gohkimhock pure speculation. Don't jump in. No fund managers inside helping you to sustain the price. It is just another musical chairs game.
25/07/2021 12:14 AM
cbkia4896 wow hot potato game using a nuke bomb. NAISUUUUU
25/07/2021 8:40 PM
ChongLeeWoon Yup, CGS must be so careless and foolish enough to issue such a report without any proper due d research and fact-checking. They must have forgotten that they needed to consult the wisdom of i3 naysayers before issuing the report.
25/07/2021 11:01 PM
Bgt 9963 Post removed. Why?
26/07/2021 8:22 PM

I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Earn MQ Points while trading with MQ Traders Group
MQ Affiliate
Earn side income from MQ Affiliate Program

474  415  567  809 

Top 10 Active Counters
 TIGER-OR 0.0050.00 
 MLAB 0.045+0.005 
 TIGER 0.045+0.005 
 MTRONIC 0.03-0.005 
 KNM 0.26-0.01 
 EMICO 0.525+0.085 
 KGB-WB 0.61+0.165 
 SERBADK 0.34-0.02 
 AT 0.065+0.01 
 ENCORP 0.38+0.02