KUALA LUMPUR (July 2): Genetec Technology Bhd’s share price jumped to a new peak in Bursa Malaysia morning trade today after rising RM1.18 or 11.78% to RM11.20 as investors weighed the automation specialist’s prospects against growing global demand for electric vehicles (EVs).
At 9.48am, Genetec's share price had pared gains at RM10.92 after trading between RM10.18 and RM11.20 so far today. At RM10.92, Genetec had a market value of about RM549.71 million based on the company’s 50.34 million issued shares.
Genetec’s share price yesterday rose past RM10 for the first time.
In just a year, the stock had climbed to current levels — from RM1.35 on July 2, 2020.
At a glance, the current surge in Genetec’s share price started since late May 2021 when the stock closed at RM3.69 on May 28, 2021.
On June 17, 2021, Genetec said in a Bursa filing that the company had secured new orders worth approximately RM47.9 million from existing customers who are global players in the “electric vehicle and battery” and “hard disk drive, electronics and semiconductor” industries.
"The secured orders are expected to contribute positively to Genetec’s earnings for the financial year ending March 31, 2022 (FY22),” the company said.
Investors who monitor Genetec’s corporate updates would have also noticed that its largest shareholder Chen Khai Voon in recent days raised his stake in the company.
Yesterday, Genetec said in a Bursa filing that Chen had raised his combined direct and indirect stake in the company to 18.163% after acquiring on the same day 260,100 shares on the open market.
The 18.163% stake comprises direct and indirect portions of 11.02% and 7.143% respectively, Genetec said.
The company added that Chen’s indirect stake is held via KVC Corp Sdn Bhd.
According to Genetec's June 22, 2021 filing, Chen’s direct and indirect stakes previously stood at 10.512% and 7.149% respectively for a combined equity portion of 17.661% after he bought Genetec shares on the open market on June 18, 21 and 22.
Prior to that, Genetec’s Feb 18, 2021 filing showed that Chen’s combined direct and indirect stake as at Feb 17, 2021 stood at 17.554%, comprising 11.45 million shares.
Based on Genetec’s Feb 17 closing share price of RM5.76, Chen’s stake was valued at RM65.95 million then.
Yesterday, Chen’s combined direct and indirect stake of 18.163%, comprising 14.69 million Genetec shares, was valued at RM147.19 million based on the stock’s closing price of RM10.02.
Investors could have also taken their cues from CGS-CIMB Securities Sdn Bhd’s recent report on Genetec.
On Monday, CGS-CIMB analysts Walter Aw and Mohd Shanaz Noor Azam wrote in the report that Genetec is confident it can benefit from growing demand for EV vehicles worldwide.
According to the analysts, Genetec claimed it made a breakthrough in producing smart factory automation systems for EVs, energy storage and autonomous driving in 2020.
"The group plans to ride on the structural shift in the global automotive industry from internal combustion engines towards EVs.
"Based on the Global EV Outlook 2021 published by the International Energy Agency (IEA) in April 2021, the global electric car stock reached 10.2 million in 2020 (+43% year-on-year [y-o-y]). While the global car market dipped 16% y-o-y in 2020 due to the negative impact of the Covid-19 pandemic on the economy, global electric car sales rose 51% y-o-y to 3.1 million units.
"Under the sustainable development scenario initiatives, the IEA expects the global electric car stock to reach up to 204 million units by 2030,” the analysts said.