KUALA LUMPUR (April 26): PublicInvest Research has maintained its "outperform" call on Greatech Technology Bhd with an unchanged target price of RM6.80, as it continues to like Greatech for its unique exposure to the photovoltaic (PV) and electric vehicle (EV) battery segment.

Its analyst Chua Siu Li said in a note today, Greatech’s first quarter (1Q) results came in within both her and consensus estimates at 26% of full-year forecasts.

The group delivered a 152.4% year-on-year growth in its 1QFY21 headline net profit, reaching a new record high of RM46.7 million. The growth was attributable to the higher contribution from its production line systems (PLS) segment, arising from the EV battery industry, as stronger contributions from the Lordstown Motors Corp orders have started to kick in.

“We tweak our FY21-23F forecasts slightly by less than 1%, due to housekeeping changes.

"We continue to like Greatech for its unique exposure to the PV and EV battery segment, as both the power and automotive industries are undergoing structural changes,” said Chua.

She noted Greatech’s recent order book of RM293 million has also reflected its new battery cell testing equipment order secured by its US subsidiary.

“Based on our estimate, the group has clinched about RM40 million worth of new orders during the quarter and we believe that bulk of the replenishment was contributed by Greatech’s newest EV client,” she added.

She explained that the order is for the supply of battery cell testing equipment, rather than a complete battery pack assembly line, hence the value is relatively lower than Lordstown’s PLS orders.

“We are still positive on this new development nevertheless, as Greatech has continued to diversify its customer base and we believe that Greatech’s reputation in the EV space will be greatly boosted after securing this new EV client,” she said.

At 11.06am, Greatech rose six sen or 1% to RM6.09, valuing the group at RM7.55 billion. The stock had earlier risen to a high of RM6.20.