KLSE (MYR): GREATEC (0208)
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Last Price
2.06
Today's Change
+0.06 (3.00%)
Day's Change
1.98 - 2.07
Trading Volume
4,126,000
2024-11-27
2024-11-27
2024-11-27
2024-11-27
2024-11-26
Mabel
24,288 posts
Posted by Mabel > 2019-06-20 22:14 | Report Abuse
@rr88 Mabel market makes you feel smart today. It can make you stupid as well in a blink of an eye just like what happened to iwcity today.
So be modest. Listen to this old hand. I hv walked thru the doom n bloom of this market.
Its a hot stock. You people speculators will decide how long for it to remain hot. Once its over, fundamental will take over.
I would never invest long term with anything to do with solar energy. Prospect is negative.
Sure rr88,
Just bear with me, this solar energy is only one aspect of Greatec business model.
It has potential upside through faster automation by existing clients, in light of rising
labour costs. Penetration of EV-battery segment via recently-acquired client, Panasonic and R&D breakthroughs, resulting in new automation products for clients.
With 5G coming this automation part will rocket to the roof and will compensate the solar energy when required.
Potential transfer to Main Market?
Based on its recent 1Q19 earnings, prima facie, it is likely to be able to meet the requirements for a transfer to the Main Market. In order to qualify for transfer, GTT must have uninterrupted profits for 3-5 full financial years based on audited financial statements. It must have aggregate after-tax profits of at least MYR20m and an after-tax profit of at least MYR6m for its most recent financial year. GTT delivered after-tax profits of MYR26m in FY17 and MYR37m in FY18. In 1Q19, its after-tax profit was MYR12.5m. GTT’s transfer to the Main Market, if it meets the profit qualification for the entire FY19, could happen in early-2020, after its FY19 accounts are audited, we estimate. The transfer can happen even earlier as GTT was also profitable in FY16, with after-tax profit of MYR6m.
Against local players, the most comparable custom automation equipment player with high customer concentration risk would be Pentamaster Corporation (PENT MK, Not-Rated); up to ~50-60% of Pentamaster’s revenue comes from a single Austrian-based sensor company which is mostly exposed to the smartphone segment. Trading at 16.3x CY19 P/E for 27% FY18-20 earnings CAGR based on consensus projection, Pentamaster is rated BUY with an average