KUALA LUMPUR (April 23): Greatech Technology Bhd’s net profit jumped 152.25% to RM46.66 million for the first quarter ended March 31, 2021 (1QFY21), from RM18.48 million a year earlier.

The increase was mainly due to a higher reversal of unused provision for warranties of RM8.49 million made in the prior years, as well as favourable gross margin mix benefits realised from engineering design works, said the group in a bourse filing.

Revenue soared 80.41% to RM95.14 million, from RM52.74 million a year ago, driven by higher revenue recognised for production line systems (PLS) in the electric vehicle energy storage industry.

Greatech said it has been encouraged by the new order which has been secured by its wholly-owned foreign subsidiary in the United States from electrified vehicle customers for energy storage recently, demonstrating healthy demand for its automated equipment, ranging from single automated equipment up to PLS.

“Although the current business environment remains uncertain during the worldwide economy recovery stage, the group saw customers’ interest in automated equipment and some business in geographic regions continue to be strong during the first quarter of 2021.

“The group remains optimistic about year 2021 and will continue to prioritise the health and wellbeing of our employees, recruit more skilled workers and actively manage our supply chain and market presence perspective,” it added.

As of April 9, Greatech said its order book stood at RM293 million, which is expected to last until the first half of 2022.

Greatech's share price closed five sen or 0.84% higher at RM6.03, giving the group a market capitalisation of RM7.55  

The stock has climbed 32.53% year-to-date from RM4.55 on Dec 31 last year.