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GENETEC (0104) GENETEC TECHNOLOGY BHD 2Q net profit soars sixfold to RM16.3m, 12-for-one bonus issue proposed

KUALA LUMPUR (Oct 25): Genetec Technology Bhd's net profit for the second quarter ended Sept 30, 2021 (2QFY22) jumped more than sixfold year-on-year to RM16.31 million from RM2.64 million due mainly to higher sales volume and improved operational efficiency.

In a bourse filing on Monday (Oct 25), Genetec said revenue for the quarter rose to RM59.31 million versus RM38.67 million previously.

Earnings per share surged to 32.25 sen from 6.18 sen.

Genetec did not declare any dividend for the quarter.

For the six months ended Sept 30, 2021, its net profit soared to RM24.49 million from RM549,000 previously.

Reviewing its performance, Genetec said it continued to achieve robust results primarily due to the electric vehicle (EV) sector, which was boosted largely by the global electrification trend as well as continuous efforts to strengthen in-depth cooperation with its existing major customers.

On its prospects, Genetec said it is riding on the momentum of the worldwide radical shift towards automobile electrification and collaborating with existing as well as new global customers in the EV sector to further enhance its share within this segment of the global market.

“This will ensure the upward propelling of the group’s revenue in the future and allow us to discover more market opportunities.

“With the current secured orders in hand and positive outlook for the global EV market, the group expects to continue performing [well] in the subsequent quarters, barring unforeseen circumstances,” it said.

Separately, Genetec proposed to undertake a bonus issue of 661.56 million new shares on the basis of 12 bonus shares for every one share held.

It said the entitlement dates will be determined later after obtaining all relevant approvals.

The company said that the bonus issue could encourage greater participation and broaden its shareholder base while potentially improving trading liquidity of Genetec shares on Bursa Malaysia.

The company expects the proposed bonus issue to be completed by the first quarter of 2022.

Based on the five-day volume weighted average price (VWAP) and the lowest three-month daily VWAP of Genetec shares up to Oct 15, the theoretical ex-bonus price of Genetec shares is expected to be between RM1.32 and RM3.28.

At the midday break on Monday, Genetec settled 3.42% or RM1.60 higher at RM48.40, valuing it at RM2.5 billion.

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