KUALA LUMPUR: There is growing optimism on Greatech Bhd’s growth prospects as the company is set to expand its customer base.
The group is targetting eight new customers, including its recent new customer, and Atlis Motor Vehicles, in the near future from the electric vehicles (EV), life science and semiconductor industries.
This comes on the back of recent news that the group had secured its first purchase order from a new electric vehicles customer for a production line system for the production of lithium-ion battery cells.
“We are positive on Greatech’s newly-secured EV customer, which is positive for near-term earnings and bodes well for Greatech’s long-term growth catalysts via expansion of its customer base, ” said Maybank Investment Bank Research.
While the details and background of the new customer and order value are undisclosed for now, the customer has been in the EV business for seven to eight years.
Greatech estimates the order to be delivered in about three months, barring any unforeseen circumstances or delays.
“We are maintaining our FY21-23E net profit forecasts at this juncture, pending further details and confirmation on the new order.
“Meanwhile, for FY21-23E, we have pencilled in 31%-32% of revenue contribution from non-solar customers (i.e. EV and new customers) for PLS orders to the group, ” said Maybank IB.
It maintained its “buy” call on the counter with a target price of RM6.75, based on 49 times FY22 price-earnings ratio at +2.5 standard deviation.