Phillip Capital Research said it has cut cut its 2025 and 2026 EPS forecasts by 16% and 21%.
PETALING JAYA: Phillip Capital Research is lowering its earnings per share (EPS) forecasts on Greatech Technology Bhd
’s for 2025 and 2026.
Risks of project recognition delays and order book replenishment challenges due to policy uncertainties under the US President Donald Trump’s administration have led the research house to do so.
“After toning down our project revenue recognitions, we cut our 2025 and 2026 EPS forecasts by 16% and 21%.
“In tandem with the earnings downgrade, we lower our 12-month target price to RM2.40 a share from RM3, based on the unchanged 32 times target price earnings multiple on 2025 EPS,” it said.
The research house said despite the earnings revision, it remains optimistic about Greatech’s long-term prospects, given its exposure to structural growth sectors such as solar, electric vehicles (EVs) and life sciences.
The research house is reiterating its “buy” rating on the company, noting that key downside risks include slower order book replenishment, weaker-than-expected revenue recognition, and further cost pressures.
For the financial year ended Dec 31, 2024, Greatech’s net profit rose marginally to RM154.99mil from RM154.36mil in 2023. Revenue increased to RM752.37mil from RM658.75mil previously, the company said in a filing with Bursa Malaysia on Tuesday.
Revenue growth was largely propelled by a strong performance in the life sciences sector, driven by the development of cutting-edge medical technology systems.
Greatech noted the growth was achieved both organically and through strategic acquisitions, including the addition of prominent life sciences customers from Greatech Integration (Ireland) Ltd.
For the fourth quarter of financial year 2024, net profit rose to RM51.62mil from RM41.54mil a year ago. Revenue for the period surged to RM205.84mil from RM154.64mil previously.
For 2025, Greatech remains optimistic about its growth prospects and is well-positioned in the high-potential sectors such as clean energy, EVs, and life sciences, which exhibit long-term potential.
“Moving forward, the group will continue to prioritise effective management of project costs and expenses, while enhancing supply chain efficiencies and capitalising on synergies arising from mergers and acquisitions,” it added.
The stock closed three sen lower at RM1.81 yesterday.
