Greatech Q1 net profit jumps 152% as EV business lifts profit margin


KUALA LUMPUR: Greatech posted RM46.6mil in net profit in the first quarter and said that its customers' demand for automated equipment remained strong despite the Covid-19 pandemic.

"The Group has been encouraged by the new order which has been secured by its wholly owned foreign subsidiary in the US from electrified vehicle customer for energy storage recently, demonstrating healthy demand for our automated equipment," it said.

"The Group remain optimistic about year 2021 and will continue to prioritise the health and wellbeing of our employees, recruit more skilled workers and actively managing our supply chain and market presence perspective," it added.

As of April 9, Greatech’s order book stood at RM293mil, which the company expects to last until first half of 2022.

For quarter ended March 31, the group’s revenue swelled 80% to RM95.1mil. 
The company attributed the increase to the higher revenue recognised for production line systems (PLS) in the electric vehicle energy storage (EV energy storage) industry. "Production of equipment for the EV energy storage is currently active and there has been a few equipment which have been successfully delivered to the customers," it said.

During this quarter, the Group has recorded an overall increase in the revenue recorded from PLS, single automated equipment (SAE) and provision of parts and services.

Greatech also reported a higher gross profit of RM49.38mil and higher gross profit margin of 51.90% during the quarter under review.

"The increase was mainly due to the increased reversal of unused provision for warranties of RM8.49 million made in the prior years as well as the favourable gross margin mix benefits realised from engineering design works," it said.

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