Greatech Technology Bhd is expected to receive additional RM300 million to RM400 million new orders book in the fourth quarter (Q4) of 2021, according to Public Investment Bank (PublicInvest).
Greatech Technology Bhd is expected to receive additional RM300 million to RM400 million new orders book in the fourth quarter (Q4) of 2021, according to Public Investment Bank (PublicInvest).

KUALA LUMPUR: Greatech Technology Bhd is expected to receive additional RM300 million to RM400 million new orders book in the fourth quarter (Q4) of 2021, according to Public Investment Bank (PublicInvest).

The firm said this would be primarily from Greatech's key solar customer, to finish the year strong with a targeted RM550 million outstanding orderbook.

"We gather from the management that the company is targeting at least RM500 million new orderbook replenishments in the financial year 2022 (FY22).

"Greatech has already identified 25 prospective clients in the medical segment thus far, with most residing in the United States (US)."

Greatech is also aiming to secure three to four new customers in the electric vehicle (EV) battery space from the eight shortlisted EV firms in the US, on top of the four EV clients it is serving currently.

PublicInvest said there would likely be a massive capacity boost for the company in the next one year.

PublicInvest noted that including the upcoming commencement of construction of Batu Kawan IV manufacturing plant and the expansion of its existing headquarters in Bayan Lepas, the group's combined floorspace would jump to 1.2 million square feet by the middle of 2022. 

"All-in, the total capex for the massive capacity boost will cost about RM200 million. 

"Besides having presence in the US and Malaysia, the company also plans to set up sales offices in Germany, India, Switzerland and Ireland," it said. 

The firm said Greatech was poised to capitalise on the rapidly growing addressable solar and EV market going forward.

This is in view of its expertise in production line systems (PLS) and automated equipment. 

"On top of that, its recent foray into the medical sector could also potentially help lift margins in the future, as orders for the medical segment generally fetch higher margins, due to the stringent requirements.

"Given the robust earnings outlook, we maintain our "Outperform" call on Greatech, with an unchanged target price of RM7.70," PublicInvest said.