Bursa issues UMA query to Genetec as it surges 29.6% to five-year high, nearing limit up

Bursa issues UMA query to Genetec as it surges 29.6% to five-year high, nearing limit up
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KUALA LUMPUR (Jan 18): Bursa Malaysia has issued an unusual market activity (UMA) query to Genetec Technology Bhd, after the stock neared its limit up in the first half of the trading session, gaining 60 sen or 29.6% to RM2.63 — a five-year high.

At 12.08pm, the counter saw some 1.6 million shares traded — about 14 times its 200-day average daily trading volume of 110,072 shares.

In a filing, Bursa asked the company if there were any undisclosed corporate developments in relation to its business, rumours or other reasons behind the sharp increase in its price and trading volume.

The rise in Genetec, which is involved in making smart automated assembly lines and inspection systems for factories, was in line with the Bursa Malaysia Technology Index, which gained 3.7%.

The factors behind the run-up in the company’s share price are unclear. There has been no recent news on the counter.

The group had released its annual report in July last year, where it said it is likely to see a sharp rebound in business post-pandemic, as its customers are established global leading players in the automotive industry.

Genetec’s share price has been on a steady climb since March last year, surging 150% since its closing of RM1.05 on March 19, 2020.

For its second quarter ended Sept 30, 2020 (2QFY21), Genetec had returned to the black with a net profit of RM2.64 million, after two consecutive quarters in the red.

It posted a 167% increase in revenue to RM38.7 million amid higher sales volume, while its bottom line was helped by improved operational efficiency resulting from the optimisation of production capacity.

In its prospects, Genetec said it had positioned itself favourably in the electric vehicles segment and said that it would be the key in getting through the economic headwinds.

“The group believes with its favourable positioning in this market segment and from its involvement in developing its systems and technologies together with its clients, the group will be able to weather the economic challenges ahead,” it said.

Lam Jian Wyn