PETALING JAYA: Genetec Technology Bhd is expecting more order replenishment from its customers in the areas of electric vehicle (EV), energy storage and e-mobility solutions in the financial year 2023 (FY23).
These will be from its North America EV customers and some of its tier-1 automotive clients.
According to CGS-CIMB, which attended the group’s briefing, management said the group had secured some RM60mil worth of new orders and this had lifted its order book to RM198mil.
Of this amount, some RM50mil are related to the EV, energy storage and e-mobility segments, and the balance are attributed to the hard-disk-drive segment.
“We gathered most of the new orders for the EV and energy storage segments are related to the pilot line for its North America customer’s energy storage expansion plan in California,” the research house said.
Due to the group’s positive expectations for its order book moving forward, CGS-CIMB had raised its FY22-FY24 forecast earnings per share by 3%-8%.
“Following our earnings upgrade, we reiterate our ‘add’ rating on the stock with a higher RM4.30 target price, which is still based on a 40-time calendar year 2023 forecast price-to-earnings ratio (PER) or one standard deviation above the Malaysian automated test-equipment sectors mean PER of 30 times,” it said.
CGS-CIMB also expects Genetec to register more growth in Thailand, moving forward.
“We see exciting prospects for Genetec as it participates in Thailand’s EV ecosystem development with a potential partnership with Asia Precision Public Co Ltd (APCS).”
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