Highlights cautious optimism for 2025
BANGI, Malaysia, Nov 27, 2024 - (ACN Newswire) - Technology leader in providing turnkey, intelligent manufacturing automation solutions, GENETEC TECHNOLOGY BERHAD ("Genetec" or the "Company"), announced its financial results for the first quarter of its new financial year ("Q1FY2025). Despite the lower Year-on-Year ("YoY") revenue, Genetec showcases its resilience with the continued profitability and high-double digit margins.
The Company recorded revenue of RM40.2 million and gross profit ("GP") of RM7.3 million for its Q1FY2025 ending 30 September 2024. It also reported profit before tax ("PBT") of RM4.4 million, profit after tax ("PAT") of RM4.1 million and profit after tax and minority interest (PATAMI) of RM4.8 million. Genetec continues to maintain double-digit margins for its GP, PBT, PAT and PATAMI of 18.2%, 10.9%, 10.2% and 11.9%, respectively.
Genetec acknowledged that the last quarter has been challenging for the business which it believes was mainly attributed to policy uncertainties from the client's operating markets. With the conclusion of the U.S. Presidential election and European policy developments, particularly on inflation, import tariffs, and decarbonisation, there is a sense of relief and clarity, and companies are moving forward with their capital expenditure with greater certainty.
The Company, leveraging its expertise in customised automation technology and project execution, continue to work closely with its clients to deliver tailored solutions aimed at enhancing manufacturing automation, improving efficiency and increasing production yield for its clients. With its strong track record, Genetec is confident in its ability to continue to build trust and secure recurring business from its clients. Its high client retention rate stands as a testament to its exceptional performance and has been a key factor in the Company's success. This strong foundation enables the Company to broaden its scope and product offerings with other divisions within the organisation of its existing clients to grow revenue over the long-term. At the same time, the Company's business development team continue to explore new opportunities in new markets and industries, leveraging on its extensive experience and proven success working with leading international and reputable clients.
Genetec's Battery Energy Storage System ("BESS") business is slowly gaining traction as it executes smaller-scale but strategically significant projects in both domestic and international markets. The Company remains confident that its execution capabilities and international track record will position Genetec favourably. Market developments such as the government's recently announced Corporate Renewable Energy Supply Scheme (CRESS) through interest in pairing BESS technology with solar projects, will also support demand for BESS moving forward, and is a step in achieving 70 percent renewable energy in the capacity mix by 2050[1].
Moving forward, Genetec remains committed to its strategy and focus on operational efficiency, strict cost management. With its low gearing levels and recent sale of subsidiary CLT Engineering Sdn Bhd to add to its already strong cash position, Genetec is positioning itself to ramp up operations in the coming months.
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 its global customers in the Electric Vehicle (EV), Energy Storage, 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
[1] Source: Suruhanjaya Tenaga - Guidelines for CRESS
Source: Genetec Technology Bhd
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