KUALA LUMPUR (July 13): Genetec Technology Bhd said it is unaware of any specific reason behind the unusual trading of its shares, besides its recent announcement on June 17 in relation to the new orders it secured.
In response to Bursa Malaysia Securities Bhd’s unusual market activity query, the company said there has been no corporate development in relation to its business and affairs that have yet to be announced, including those in the stage of negotiation or discussion.
It added that it is not aware of any rumour, report or any other possible explanation to account for the trading activity, adding that its board confirmed that the company is in compliance with the Ace Market Listing Rules on immediate disclosure obligations.
The counter has surged since last month, gaining 394% since its closing of RM3.76 on June 1.
Today, the counter closed up RM1.88 or 11% at RM18.58, placing it among top gainers on the bourse, with some 2.3 million shares traded. Its market capitalisation is RM937.1 million.
The recent spike in its share price followed an analyst's report by CGS-CIMB dated June 28, which highlighted Genetec’s confidence that it can benefit from the growing worldwide demand for electric vehicles.
The research house said Genetec was one of several Bursa Malaysia-listed companies with exposure to the EV and battery space, which made up 93% of its RM205.6 million orders secured since February.
“While Genetec was loss making in FY21, it is confident that the worst is over and expects stronger results going forward, backed by a strong order book and established relationships with global EV manufacturers,” CGS-CIMB said.
“Genetec had a net cash position of RM27.5 million at end-FY21,” the research house added.