KUALA LUMPUR (Feb 25): Greatech Technology Bhd's net profit contracted nearly 13% to RM27.71 million for the fourth quarter ended Dec 31, 2021 (4QFY21).

Its quarterly revenue was marginally lower at RM75.38 million versus RM76.35 million a year ago.

Quarterly earnings per share (EPS) were correspondingly lower at 2.21 sen from 2.28 sen, its filing revealed.

The group attributed the drop in earnings to lower revenue recognised in production line systems (PLS) despite a higher revenue recognised from single automated equipment and provision of spare parts and service.

On a quarterly basis, Greatech's net profit and revenue were lower by 4.34% and 20.93% from RM28.97 million and RM95.34 million, respectively, against the immediate preceding quarter ended Sept 30, 2021 (3QFY21), while EPS stood at 2.32 sen.

Greatech closed its financial year ended Dec 31, 2021 (FY21) with a strong showing of RM141.68 million net profit, a 55.42% improvement year-on-year from RM91.16 million for FY20, due to higher other income from the increase in realised foreign exchange gain.

EPS for the year were higher at 11.32 sen against the previous year's 7.02 sen, its filing on Friday (Feb 25) showed.

However, it did not declare any dividend for FY21.

The automation solutions provider's full-year revenue also arrived higher by 54.03% at RM402.22 million compared with FY21's RM261.13 million, mainly due to higher revenue from its PLS for the electric vehicle (EV) energy storage industry.

For FY22, Greatech said that its prospects remain positive, underpinned by long-term growth factors within its target markets, adding that it is well placed in sectors that are transforming rapidly for sustainable development.

The automation solutions provider highlighted that it will continue to focus on capturing the opportunities from the global demand rebound, broadening its offerings to customers and disciplined cost control to drive further improvements while remaining cautious about the supply chain disruptions and other challenges posed by the pandemic.

"With the continued strong demand across our markets, particularly in e-mobility, the group's revenue in FY22 is expected to be derived mainly from EV energy storage, solar and medical sectors," its filing wrote.

It pointed towards its accumulated outstanding order book, standing at RM546.65 million as at Feb 23, 2022, which is expected to last until the first half of 2023.

It also allocated a further RM13.14 million as its targeted capital expenditure (capex) investment in FY22 to support operating and growth requirements in addition to its FY21 capex.

At Friday's market close, Greatech's share price increased 22 sen or 5.33% to RM4.35. It is currently valued at RM5.45 billion based on 1.25 billion shares while trading at 38.43 times its historic earnings based on Bloomberg data. Year-to-date, the stock has declined by RM2.63 or 37.68% from RM6.98.