Investors who had been following G3 are certainly aware that the company had no longer associated with Green Packet, a PLC helmed by CC Puan. Unfortunately, Green Packet failed to impress their stakeholders for the longest time, and G3 is supposedly their surprise element.

Sadly, the plan had inevitably failed, too.

Unlike Green Packet, G3 shrunk their losses from couple of million in ringgit losses to a minimal RM137k loss. This was largely caused by the new shareholders and managements’ effort to control costs as well as diversifying their business.

On one end, G3 had secured a multi-million test kit supply contract from the government that could help them in turning the losses around. On the other hand, G3 had bagged a RM118 million AI job in collaboration with HK-listed SenseTime, who enjoys a market capitalization of HKD72.376 billion.

Some might think this is just another MOU or one-off event gimmick, but in reality, G3 had been working with SenseTime since 2019 to set up the first AI park in Malaysia.

Unfortunately, the plan was hit by COVID-19 which forces them to restructure the plan, but one could easily tell that both parties are working together closely, even before the listing of SenseTime.

As there is always two sides on a same coin, the collaboration with SenseTime definitely improved the fundamental aspects of G3. However, the massive technology scandal in China had affected global sentiment, which exacerbated to HK’s market, and in turn, the share price of SenseTime had dropped quite significantly, so to speak.

And a quick study between the price movement of both the companies, we could say that they are closely related to one another.

My speculation is that hot money had fled from G3 currently, which was closely in line with the 5^th consecutive week of net outflow of foreign funds. It is still up to investors to decide if this is a good BUY opportunity to collect G3’s shares during weakness or SELL to preserve capital in the current market.

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