E-mobility to contribute significantly to Genetec’s bottom line

PETALING JAYA: The e-mobility segment, which comprises electric vehicle (EV) and energy storage (ES), will remain a dominant revenue contributor for Genetec Technology Bhd.

Managing director Chin Kem Weng said the growth and development of the segment has a long-runway with the world shifting towards mass and industrial electrification as well as digitalisation – from business, telecommunications, the Internet of things, entertainment, transport, e-sports to content.

“At the same time, the global demand for stationary battery storage continues to surge, with global demand projected to hit 157.4GW by 2026 (2020: 19.3GW).

“We are seeing the massive, global shift among manufacturers and companies in moving towards EVs and renewable energy,” he told StarBiz.

By building on its existing clientele and strengthening its product portfolio through technology enhancements, according to Chin, the company is set to capitalise on its pioneer position to capture the opportunities in that space.

“The company will also focus on market development to roll out our new products to new clients and markets,” he pointed out.

For the fourth quarter ending March 31, 2023 (4Q23), Genetec’s revenue climbed by 33.5% year-on-year (y-o-y) to RM78.4mil, and net profits rose by 25.4% y-o-y to RM17.1mil or earnings per share of 2.48 sen underpinned by disciplined cost management.

Chin said the company would focus on deepening the relationships it has with existing clients by expanding and diversifying product portfolio within the space of its customers – from battery testing systems, regenerative braking, electric control units, Lidar, to battery energy storage systems.

“Technology is dynamic and ever-changing. As a technology company, staying ahead of the game is key.

“Against this backdrop, we have put in place a roadmap to accelerate the growth of Genetec’s business, focusing on three key areas: product, technology, and marketing.

“As such, we can maintain the quality and cost competitiveness of the business.

“It is crucial to work closely with our clients to develop customised solutions to cater to their business needs, as well as continuously improve on our technology and solutions.

“This will allow us to have a competitive edge, and secure market share in this space,” he said.

In a statement, Genetec chief financial officer Tan Kon Hoan said EV and ES would remain the company’s key revenue contributor, followed by the hard disk drive segment.

“Our readiness to support the EV and ES customers’ demands in terms of timely delivery at scale contributed to the ongoing confidence and long standing customer partnerships.

“Despite the fluctuating environment, we have been able to maintain our margins and delivery quality.

“Our discipline in maintaining our cost of materials, operations and funds has allowed the overall lowering of our gearing levels,” he said.