KUALA LUMPUR (Aug 22): Automation solutions provider Greatech Technology Bhd (KL:GREATEC) posted a 26.3% jump in net profit for the second quarter ended June 30, 2024 (2QFY2024), as it seeks to continue to focus on cost-optimisation measures aimed at improving profitability, and ensuring that ongoing projects are completed on schedule.

Net profit for the quarter under review stood at RM48.39 million, compared with RM38.3 million for 2QFY2023, as revenue rose 24.3% to RM205.88 million from RM165.61 million previously, the company showed in a bourse filing on Thursday.

Greatech said the revenue growth was partially driven by its acquisition of Greatech Integration (Ireland) Ltd, which had been integrated into the group and contributed to revenue starting from Jan 1, 2024.

"However, the primary driver of the revenue increase was strong organic growth. This growth was largely due to a higher order book entering 2024, leading to a significant rise in revenue from the production line system within the life science and e-mobility industries," the company added.

Subsequently, basic earnings per share for the quarter increased to 3.86 sen per share, from 3.06 sen previously. Greatech did not recommend any dividends for the quarter under review.

For the first half ended June 30, 2024 (1HFY2024), net profit was up 21.6% at RM80.42 million, compared with RM66.16 million for the previous year's corresponding period, as revenue rose 28.1% to RM357.75 million from RM279.29 million.

Greatech posted the highest annual profit in the company's history of RM154.37 million in FY2023.

Looking ahead, the company said its strategy includes expanding its customer base and focusing on process innovation to drive growth. "By investing in these areas, the group aims to capitalise on opportunities within our established markets and enhance our competitive position.

"Specifically, we will enhance our capabilities in the life science industry, as we see significant opportunities with both new and existing customers," it added.

As of Aug 19, the group’s outstanding order book stood at approximately RM865 million, and is expected to last until 2HFY2025.

At Thursday’s market close, Greatech saw its share price up by 11 sen or 2.25% at RM5, giving it a market capitalisation of RM6.27 billion.