Genetec Technology Bhd reported a lower year-on-year revenue for the quarter ended 30 September, 2024, amounted to over RM40.2 million1 contributing to profit after tax (PAT) totalled at over RM4.1 million2, as the company expects more revenue from BESS, recurring clients and new markets, according to a press statement circulated by the company on Tuesday.

The quarterly revenue of RM40.2 million for the period under review was contributed primarily by key clients in the e-mobility and energy storage segment, supplemented by the electronics segment.

Earnings per share (EPS) amounted to 0.61 of a sen per share for the quarter ended 30 September, 2024.

Genetec is a leading technology firm which specialises in cost-effective full turnkey smart manufacturing automation solutions, as well as value-added services for its global customers in the electric vehicle (EV), energy storage, automotive, hard disk drive (HDD), consumer goods and healthcare sectors.

Genetec's Battery Energy Storage System (BESS) business is slowly gaining pace as it executes smaller-scale but strategically significant projects in both domestic and international markets. Additionally, the government's recently announced Corporate Renewable Energy Supply Scheme (CRESS) pairs BESS technology with solar projects and thus supports demand for BESS towards 70% renewable energy mix by 2050.

With its strong track record, Genetec is confident in its ability to secure recurring business from its clients, as indicated by the high retention rate which has enabled the company to broaden its scope and product offerings for long-term growth.

At the same time, Genetec's business development team continues to explore various opportunities in new markets and industries, leveraging on its proven success working with leading international and reputable clients.

Revenue for the quarter ended 30 September, 2023, amounted to over RM72.4 million3 and the quarterly PAT stood at nearly RM17.5 million4, while EPS stood at 2.45 sen, according to a Bursa filing in November 2023.

Despite the lower year-on-year revenue, Genetec made up for it in continued profitability and double-digit margins5 of gross profit (GP) and PAT at 18.3% and 10.3%, respectively, owing to continued cost discipline.

Moving forward, Genetec will continue to focus on operational efficiency and strict cost management. With its low gearing levels and recent sale of 51%-owned subsidiary CLT Engineering Sdn Bhd for over RM21.6 million6 cash has added to its already strong cash position.

The company acknowledged that the quarter under review was challenging due to policy uncertainties from the client's operating markets especially the US market. With the conclusion of the US Presidential election and European policy development, particularly on import tariffs and decarbonisation, there is a sense of relief and clarity.

1. RM40,202,000 ︎
2. RM4,130,000 ︎
3. RM72,440,000 ︎
4. RM17,477,000 ︎
5. Calculation of double-digit margins: GP/Revenue X 100, and PAT/Revenue X100 ︎
6. RM21,627,559 ︎