Timely execution and delivery of high-quality projects, boosted by new products and business development efforts ramps up momentum for its electric vehicle and energy storage segments
BANGI, Malaysia, Feb 27, 2024 - (ACN Newswire) - Technology leader in providing fully customised, intelligent manufacturing automation solutions, GENETEC TECHNOLOGY BERHAD (Genetec) recorded another strong quarter for their third quarter financial year 2024 (Q3FY2024), continuing the strong business and execution momentum highlighted at the beginning of the FY2024. The Company recorded a higher revenue vis-a-vis the preceding quarter, with all major financial indicators showing significant double-digit growth. This is notable despite the year-on-year (YoY) decrease in revenue for the quarter to RM76.9 million from Q3FY2023's RM85.1 million. Genetec's profit before tax (PBT) and profit after tax (PAT) stood at RM25.2 million and RM22.9 million for the quarter under review versus RM13.9 million and RM12.5 million a year ago.
The Company delivered a high gross profit margin of 46.8%, which reflects a 16.2% increase on a YoY basis. This increase is attributed to higher margins in its product mix for the quarter under review. Genetec reiterated that the lower turnover for Q3FY2024 was not reflective of the pipeline strength or sentiment, but the project progressions and billings, as is typical in industries with large project values. The Company said the Electric Vehicle (EV) and Energy Storage segments continued to maintain its dominance as Genetec's primary revenue stream, contributing nearly 100% of total revenue, accumulated over the last nine months.
Genetec Co-founder and Managing Director Chin Kem Weng highlighted, "Our efforts in 2023 are paying off as Genetec continues our momentum into New Year 2024. As a Group, the teams have been working hard on our product and business development to secure our pipeline and to build new leads across all our business segments, especially in renewable energy with MYBESS. As such, our performance for this quarter remains strong and consistent with our outlook at the beginning of our financial year 2024 (FY2024). In addition, all key financial metrics show double-digit growth, reinforcing the Group's discipline and management of our supply chain. Moving forward, we are optimistic on the Company's performance and the timelines in translating the projects secured to be reflected in the remaining quarters for the financial year ending 2024."
Chin emphasised that, countries globally are ramping up efforts in RE although the timeline of the shift will be for the long-term. Likewise for Malaysia, the shift to RE and EVs continue to gain traction due to increasing pressure from governments and consumers. "The S&P Global Commodity Insights forecast nearly USD 800 billion in clean energy investments for 2024, which is 10% - 20% higher than 2023 levels[1]. Following many years of policy discussions and framework launches, 2024 is a year of execution. This is a time for infrastructure planning, spending and set up to support the shift away from fossil fuel to electric. Companies in the ecosystem, especially EVs are ramping up their production capacities to cater to future demand. As Genetec is in the business of capital expenditure (CAPEX), we have been working hard to position ourselves as the go-to end-to-end turnkey solutions provider for intelligent automation for EV and as of 2023, for RE."
Genetec added that it will continue to capitalise on such factors while also actively exploring other growth opportunities. At the end of the quarter, Genetec's earnings per share (?EPS?) stood at 3.04 sen (fully diluted) compared to 2.41 sen (fully diluted) in Q2FY2024.
About Genetec Technology Berhad
Genetec Technology Berhad is a technology leader in providing customised full turnkey smart factory automation manufacturing lines. It is a public company listed on the Main Market of Bursa Malaysia Securities Berhad (Stock code: 0104). Its principal business focus is in the provision of high-quality, responsive and cost-effective designs, as well as the manufacturing of automated industrial systems, equipment and value-added services for our global customers in the Electric Vehicle (EV), Automotive, Hard Disk Drive (HDD), Consumer Goods and Healthcare sectors. For more information please visit: https://genetec.net/.
Issued by: Narro Communications on behalf of Genetec Technology Berhad
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[1] Source: S&P Global Commodity Insights 2024
Source: Genetec Technology Bhd
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