Genetec has completed a pilot run of its BESS and is ready to move into the commercialization phase.

• The company has installed an initial BESS running on solar energy at its Bangi plant and has received encouraging inquiries for deployment across various applications.
• Genetec is in discussions with a potential customer to deploy over 15 MWh BESS solutions in 2HCY23F.

Genetec has a record-high RM180m order book replenishment in 2QFY3/23, mostly from the electric vehicle and energy storage segments. It expects to receive favorable order replenishment in 2HCY23F, providing healthy order pipeline visibility for at least the next two years.

The Add rating with an unchanged TP of RM4.20 is maintained, with higher-than-expected orderbook replenishment, rise in institutional funds' holdings, expansion into new customers or segments, depreciation of the ringgit against the US$, and potential interest as an ESG-related play as potential re-rating catalysts.