GREATEC

Sector: Technology

GREATEC is no less of a famous name among investors, as its stellar share price performance in 2021 which grown from RM1.2 to RM4.5 has not only rewarded many investors, but also propelled its co-founder Mr Tan into #22 richest man in Malaysia for year 2020. If you have followed the company closely, surely you are aware that the company has secured a contract value of circa RM250m from Lordstown – an EV making company. Lordstown is under some financial stress as it needs to raise fresh funds in order to fund the full commercial production of its Endurance model, raising concerns on its ability to pay suppliers. However, less worried for GREATEC as the company has thus far collected RM160m, with the remaining RM90m to be collected in two tranches, August and October. On another hand, GREATEC’s largest photovoltaic (PV) client, First Solar, has recently announced its plans to invest USD680m to build a new solar panel plant in Ohio. We are optimistic that GREATEC will likely benefit from this expansion.

Looking at its share price, GREATEC is slowly climbing upwards after rebounding from its support at RM5. GREATEC is currently trading at RM5.88, immediate resistance at RM6.39. The share price is trading in the range between RM5 and RM6.39 since Jan 2021. If the share price continues to move upwards in line with the recent positive sentiment in the technology sector, GREATEC may challenge its previous resistance level and have a chance to breakout to new high.

Reason to Monitor:  Constant growing quarterly performance and profit margin. Positive business prospects.

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