https://klse.i3investor.com/blogs/THP/2021-11-01-story-h1592980404-MIRACLE_BULL_RUN_GENETEC_0104.jsp

https://rfs.cgs-cimb.com/api/download?file=08c12e1e-e402-44ed-b908-3f99bd55c3b6

https://evannex.com/blogs/news/tesla-s-4680-cell-is-a-stroke-of-genius-sandy-munro

https://www.cnbc.com/2021/10/20/tesla-tsla-earnings-q3-2021.html

Only 4 sen apart. Is it worthwhile swooping into some MPI?

https://www.marketscreener.com/amp/quote/stock/GENETEC-TECHNOLOGY-BERHAD-6498171/news/Genetec-Technology-Berhad-KLSE-GENETEC-added-to-S-P-Global-BMI-Index-36499628/

Tobby if you are mean Lordstown Motors, I think you are referring to Greatec. Genetec has no relationship with Lordstown

https://www.klsescreener.com/v2/news/view/891703

RHB has a technical analysis also

Interfund. I do feel smart with you around. CATL manufactures battery. Tesla is embarking to produce its own batteries in its own plants in Texas and Berlin. Genetec is part of the supply chain for the manufacture of these batteries. Genetec manufactures the line for these batteries to be tested.
All these is public info

@interfund I truly wish there are more punters like you in the Bursa market place

I do agree that the share price appears lofty; I have sold partially and whatever I am still holding is pure profit. I do not view low esos exercise price as a bad thing as esos is for all the staff who had contributed to the success of Genetec. From the AR, you will sew that most of the management team members had been with the company for 15-25 years. Also you need to ask yourself the sustainability of the business model. They are an important component of the supply chain for Tesla batteries production, and also have contracts for other e mobility component. So if you believe this is the era for EV batteries & autonomous EV , this is just the beginning for genetec.

I reckon one need to narrow the term EV when it comes to investing. I was told by a supplier to EV manufacturers that in 5 years, all cars will be an EV. Theoretically you take the existing engine from a Proton and replace with a battery run one, we have a Proton EV!
Many international funds are averse to EV manufacturers today. Instead they advise investing in companies involved in the manufacture of component for EVs. This is wide reaching as it would cover batteries, electronic control units, the semiconductor makers etc.
In the context of Genetec, they supply automated production lines for battery cell and automotive components going into E-mobility application such as electronic control units (ECU), sensors, braking system etc. Am sure there are other players like Greatech etc
But moving forward, the key word is “autonomous”. From a Malaysian context, which are the companies involved in the supply chain for self driving autonomous. Don’t underestimate the semiconductor players like MPI, Inari

Sorry I don’t mean to be condescending; just want to share what I read from some very basic book on Investing in Shares

Target Price (TP) depends on the performance of the company; actual and forecast. In CIMB’s maiden report, the profit for FY mar 22 is RM45 mil. So if Genetec achieved a higher profit, say RM60 mil (and expecting a similar growth following year), the analyst may increase TP to RM70

https://resmail.cgs-cimb.com/e/763223/20-D465-12D5-1B6C-9938E1F40AE1/k19bxv/503477161?h=YWPYKeSBM-OcxF1JTqjpnYQfRpB9BeB3aytQbBb_5e8

CIMB’s 41-pager research report dated 22/9/21, TP RM50

Has anyone got the CGS CIMB report? I was told it came out last night with a target price of RM50

RM100 a bit ambitious. Will need clarity on FY2022 financials. But base on FY2021 financials and a PE of 70 (Greatec PE), TP only RM70

Can’t say it’s the cheapest. It is already PE of 18 base on FY22. Rubber glovers are much cheaper

17 sen is before 10 for 1 consolidation; So it is equivalent to RM1.70. Mind you the company was listed more than 15 years. Also a niche Genetec has is that the company had been involved with the automotive sector for nearly 20 years so being identified by major EV manufacturers was based on long term relationship with players from the industry

IPO price was 30 sen; there was also a 10 for 1 consolidation so it’s an equivalent of RM3.00. IPO was in 2005 and at RM33, price admittedly is quite commendable at >10x. But if you compare to Tesla, RM10K invested 10 years ago is today worth approximately RM240,000

Analysis of Insider selling is generally important for investors to take note but if total sold by the 2 independent non executive directors was 16,000 (as compared to 1,000,000 shares traded today) or the 900,000 esos still not exercised by the MD, I am not sure the relevance or value add of highlighting the share sale to this chat group

I agree that it makes a lot of sense to partially sell and diversify. Most of the ppl in this chat group who have Genetec shares probably seeing a 2-3 baggers. I am looking to diversify proceeds from my partial sale to some other companies like Inari, vitrox or pentamaster. But one stock really caught my attention. If there is an award for the best management, it must be for the promoters of Greatech. There was an announcement on Friday that Greatech procured RM163 mil worth of contract over a really short span of time. Most other players would need 3-6 months to procure even a RM50 million contract from any of the EV or RE customer

Genetec Price RM29 say RM30, mkt cap RM1.5 b
Mkt cap of Greatec = RM9 b <=> 6x of Genetec
For Genetec to be RM9 b, RM30x6 = RM180

Genetec has a long way to get to greatec valuation (RM9 b). Just to be at par, share prices of Genetec has to be RM180

If this is a con stock, it would not have been possible for so many of us to have made money. At RM30, it is hardly a stock to lure unsuspecting aunties and Uncles. Any investor can still sell at RM29 anytime if they do wish. You can never make money with con stocks

Thanks newbie8080. I was told to avoid EV manufacturers at all cost as most of them are loss making and trading at silly valuation. Instead I was told to look at EV component manufacturers. That was how me and my friends started tracking Genetec, Greatec etc

https://rfs.cgs-cimb.com/api/download?file=20df177f-e83a-4109-9bc9-865da2b1e6d8

One of the supply chain for the battery. Also involved in e-mobility

I just sold enough to pay for my two sons’ universities accommodation and living expenses this coming academic year. Will keep the rest for following years tuition fees & expenses. My husband will be so pleased he does not need to withdraw any EPF money for the children’s fees and expenses this year

Thank you. So I have to find out if this is a goreng stock or not next. So fun. Learning new things and make money at the same time

My Penang friends tracking the other EV players asked suggested using Greatech’s or Vitrox PE. So if I use PE of 70 and base in Genetec’s first quarter PAT, I come to 70xRM8mil x4 =RM2.2 bil which is much higher than the RM1.4 bil market cap now? Makes sense?

Can please explain how you came to the TP. Is it base on PE? I was told DCF more accurate but that is only if one can have access to a lot of information.

There is a difference between Genetec and green packet if you were to study their shareholders list in the latest annual report. There is not a single institutional fund in GreenPacket whereas the largest local mutual/insurance funds are invested in Genetec. AffinHwang, Principal, AIA

I really appreciate the volatility. I realised enough gains two weeks ago to pay for my two sons’ university fees for the year & when the share price retraced end of last week, put back some capital into the shares. Hopefully by the time they go back to the UK next month, I can realise enough gains for their whole year’s accommodation and expenses. I read somewhere that as long as we sell higher than we buy, trading is healthy. Am still very comfortable with what I see going in and out of the factories

Ironshirt don’t you have to see actual number of shares in issue or the very least earnings per share. I have been reading my Dummies Book on buying shares so I stand to be corrected

Thank you for your comments. I used to think I was absolutely useless and completely naive when it comes to equity investments. Reading some of your comments really make me think otherwise. I have certainly become more inspired over the past 2 months

Ironshirt, if you have the chance, do go to the reception at Genetec. You would be able to see the actual final the photograph of the actual final product ; a sophisticated manufacturing line for a German EV manufacturer

I note JJ Chan’s comments. An automated assembly system manufacturer like Genetec does not necessarily mean they manufacture the whole line for the manufacture of an EV. Genetec is in the subset of being involved in the manufacture of component parts for the EV. Also there are many parts in an EV for instance battery, electronic control system, tyres etc. So for each of this part say the battery, there are again 7/8 supply chains eg stacking etc. Genetec is probably involved in only one of the supply chain for the EV manufacturer

Genetec business is intact. A group of us bored housewives decided to do some very basic research on some of the purported EV related stocks during the MCO. As we have no access to management and cannot visit the factories, we decided to observe the ins and outs movements of the respective factories. Many of my Penang friends covered the companies there. I spent days outside the Bangi factory over the past 2 months. I was impressed with what I saw. We also compare notes. You would be surprised what you can find out just sitting and watching at the factory gates

Unlike the others, Genetec had clearly been elusive. I understand from some analysts that management is very focussed on delivering results. As long as they deliver and procure more relevant contracts from key EV players, the value of the company should increase.

https://rfs.cgs-cimb.com/api/download?file=20df177f-e83a-4109-9bc9-865da2b1e6d8

Wonder why the net profit margin only 21% when Greatech NPM announced yesterday was 36%

So glad to hear. Otherwise I would literally live true to my name “naive investor”

You are so right . The only way for local companies to be world champion is to compete internationally and to move and challenge the boundaries overseas

I don’t know much about Genetec before until I read the CIMB note. If I understand the US client’s business model correctly, surely this is only the start. So to me if I believe Genetec is a proxy to this US client of theirs, I reckon Genetec will ride the Battery Revolution. it does not matter if I did not buy at RM5, RM15 or RM25. I can still buy now

Unlike most organisations where esos are heavily allotted to promoters or key management, apparently the Genetec esos was fairly distributed even to the janitor. If I were (wish I was now) a mid management employee with those esos, I would work 25 hours. They have similar esos schemes in the Silicon Valley.

But Greatech has the most amazing set of shareholders. It’s like a Who is Who list. One fund alone owns nearly Rm700 mil worth of the shares. These funds surely cannot be wrong

Mind you, I suppose it would help if Tesla is a client. After all they currently have more than 50 % market share of EV

Wats big deal about Tesla? Greatech market cap 10 b also doesn’t have Tesla amongst their existing 5 EV and another prospective 5 EV clients

If that’s the case, I rather follow Pang

That must explain why share price been moving up