Genetec share price jumps to another record high
KUALA LUMPUR (July 1): Shares in automated industrial system group Genetec Technology Bhd rose as much as RM1.70 or 20% to touch another fresh record high of RM10.02 today.
At the time of writing, the counter had pared some gains but was still up RM1.36 or 16% to trade at RM9.86 towards its highest closing price since listing.
Trading volume stood at 1.88 million shares, over three times its 65-day average of 510,620 shares, although still far from its recent peak of 6.2 million shares on Tuesday.
At RM9.86, Genetec had a market capitalisation of RM496.06 million. The counter had gained some 470% since its close of RM1.73 on Dec 31, 2020.
In a preliminary note on the company by CGS-CIMB on Monday, the research house said Genetec is one of several Bursa Malaysia-listed companies with exposure to the electric vehicle (EV) and battery space, which made up 93% of its RM205.6 million orders secured since February this year.
The order book itself represented over two times its revenue for the financial year ended March 31, 2021 (FY21), the research house said.
“While Genetec was loss-making in FY21, it is confident that the worst is over and expects stronger results going forward, backed by a strong order book and established relationships with global EV manufacturers,” CGS-CIMB said.
“Genetec had a net cash position of RM27.5 million at end-FY21,” it added.
For FY21, Genetec's net loss widened to RM4.25 million from RM166,000 for FY20 due to lower margins, higher operating cost, foreign exchange (forex) losses and one-off employee option scheme expenses.
This was despite its revenue rising 20.85% to RM97.08 million, from RM80.33 million, on higher sales volume incurred.
http://www.theedgemarkets.com/article/genetec-share-price-jumps-another-record-high
