PETALING JAYA: Genetec Technology Bhd’s net profit surged by more than 20-fold in the third quarter ended Dec 31, 2021, mainly due to higher sales volume and improved operational efficiency.
In a filing with the stock exchange yesterday, the automation solutions provider said its net profit rose to RM18.28mil compared with RM889,000 in the same quarter a year earlier.
Revenue almost doubled year-on-year (y-o-y) to RM65.26mil from RM32.91mil in the previous corresponding quarter.
Earnings per share for the latest third quarter were 35.83 sen as compared with 2.06 sen a year ago. No dividend was declared for the quarter, despite the strong bottom line.
It is noteworthy that the last time Genetec paid a dividend was in the third quarter ended Dec 31, 2018.
Cumulatively, for the first nine months ended Dec 31, 2021, Genetec’s net profit jumped by almost 30-fold y-o-y to RM42.77mil from RM1.44mil.
The group’s revenue increased by 96.2% y-o-y to RM164.86mil from RM84.01mil.
Genetec said the unprecedented revenue and financial results were derived mainly from the electric vehicle (EV) sector.
“This secular growth trend is attributed to the group’s strong ability to cooperate with various major customers within the sector as well as the roaring market demand for EVs,” it said.
Genetec said it would upgrade its infrastructure as well as the technical expertise of its personnel to provide a well-equipped business support landscape to the existing and potential worldwide customers.
“The group is invariably maintaining its competitiveness and securing its position within the dynamic global market environment as one of the key players in EVs.
“The board of directors of Genetec announced that the company had on Jan 11, 2022 entered into a memorandum of understanding with Asia Precision Public Co Ltd to collaborate and conduct a feasibility study in relation to the potential development of a factory automation facility for energy storage system business in Thailand.
“This move was part of the group’s customer diversification plan, which could lead the company to participate in Thailand’s EV ecosystem development,” it said.