Traps and scams by these companies

https://assets.theedgemarkets.com/pictures/SR_2_TEM1337_theedgemarkets.jpg

New plant to support larger order book
We look forward to more earnings growth prospects, namely PLS orders from its existing and new customers (i.e. solar and EV). Furthermore, we expect the potentially larger orderbook in near future will be supported by additional production capacity at its upcoming, second plant at Batu Kawan, Penang. It is expected to be ready by 2H21 with estimated capex of MYR77m.

Maybank Report Greatech Technology
Outlook remains favourable; U/G to BUY
Upgrade to BUY
MYR 6.06
MYR 6.75 (+11%) MYR 6.70
FY20 core earnings were in-line – at 102%/104% of our/street’s estimates.
We adjust our FY21-22E earnings by 1-2% and nudge up our TP to
MYR6.75 (+5sen), pegged to an unchanged 49x FY22E PER at +2.5SD. We
upgrade to BUY (from HOLD) as we are positive on Greatech sustaining its solid order book and there are growth catalysts from new orders/customers. Potential capital upside is now 11%.
Lifted by PLS orders
4Q20 core net profit was MYR30.3m (+20% QoQ, +65% YoY) – taking FY20
core earnings to MYR92.3m (+61% YoY). The strong YoY earnings in 4Q20
were attributed to higher revenue recognition of production line system
(PLS) orders from First Solar (FSLR US; Not Rated) and Lordstown Motors
(RIDE US; Not Rated; i.e. on engineering design works). Notably, the latter has also contributed to the Group’s favourable margin mix. Kenanga Investors Bhd. Earnings, however, were partly pulled back by decrease in revenue for single automated equipment orders and provision of parts and services. All in all, 4 Feb 21’s order book was a strong MYR351.2m and expected to last until 1H22. We understand that a bulk of the order book was contributed by Lordstown Motors (about 68% or MYR239m), followed by FSLR

Quarter report this week. The silence before the storm!

https://www.newsweek.com/new-covid-mutations-could-prolong-pandemic-another-year-despite-vaccines-1565229 An alternate scenario is starting to appear increasingly likely, though—one in which we could still be battling the pandemic well into 2022.

https://www.newsweek.com/new-covid-mutations-could-prolong-pandemic-another-year-despite-vaccines-1565229

https://www.newsweek.com/new-covid-mutations-could-prolong-pandemic-another-year-despite-vaccines-1565229

Greatec battery segments manufacture for Lordstown

https://www.investors.com/news/ev-stocks-lordstown-hits-orders-milestone-faraday-in-talks-to-go-public/

Maybank Report 11 August 2020
Upgrade to BUY


BUY
Share Price MYR 6.10


12m Price Target MYR 7.20 (+18%)

Previous Price Target MYR 3.40

2Q20 results came in within expectations with 1H20 core earnings at
45%/47% of our/consensus’ FY20 estimates. We raise our FY20-22 earnings forecasts by 11-46% and TP by MYR3.80 to MYR7.20 (pegged to a re-rated 37x FY21E PER) on sizeable job win assumptions. Upgrade to BUY (from HOLD) as we believe GTT possesses large earnings growth

A niche automation specialist with core expertise in customisable capital equipment for solar photovoltaic
industry.


Statistics

catalysts from its battery division while supported by stable orders from its solar division. GTT’s FY21E PER of 31x derives a PEG of only 0.6x.

Mainly lifted by new customers

2Q20 core net profit was MYR17.6m (-8% QoQ, +46% YoY) – taking 1H20 core earnings to MYR36.7m (+41% YoY). The strong growth of 2Q20 bottomline (YoY) was largely driven by: (i) GTT’s new customers, i.e. single automated equipment for its EV/battery-related products and medical devices; and (ii) some revenue improvements from solar divisions’ production line system and provision of parts and services.


52w high/low (MYR)
3m avg turnover (USDm) Free float (%)
Issued shares (m) Market capitalisation

Major shareholders:
TAN ENG KEE
Llh Holdings Sdn. Bhd. Kenanga Investors Bhd.


6.10/0.97
2.4
20.0 626
MYR3.8B USD910M

71.8%
3.2%
3.2%


Orderbook – From big to bigger

We note that GTT’s current orderbook is at a strong MYR295m (end-Jan 2020: MYR215m) where approx. MYR100m was contributed by its newly- secured production line system (PLS) order from its existing EV customer. We are positive on GTT’s first PLS order from this customer as it may pave the way for more job wins in the near-future. All in all, we raise our FY20-22 earnings estimates by 11/45/46% after mainly accounting for higher contributions from its new customers/segments (EV and medical devices; Figure 2) via sustained new job wins.

Raising TP on brighter earnings outlook


FY20E PER. The higher valuation is reflective of GTT’s sustained earnings from the solar division and strong earnings growth upsides from its new EV and medical devices customers. We also note that its plan for listing transfer into the Main Market in on track for 2020.

3rd Sept

don't mislead people. should be RM 27-28 M

https://www.instagram.com/tv/CDxQtgtpvSR/?igshid=1bj9axs2sy8ru

https://www.theedgemarkets.com/article/greatech-technology-2q-net-profit-jumps-63-share-price-hits-alltime-high

Quote and Like Mr_Kiah the real sifu to see more of such informative posts
Please read the Edge report.

Likewise, Supermax and Kossan are expected to see a 260% and 207% q-o-q growth respectively this coming quarter to meet their earnings consensus.

Supermax’s market capitalisation is currently at RM31.28 billion. Assuming a P/E ratio of 25 times, which is considerably high for the manufacturing sector, Supermax needs to make an annual net profit of RM1.25 billion, or an average quarterly profit of about RM312 million to justify the share price of RM 23.

https://www.theedgemarkets.com/article/how-much-profits-do-glove-makers-need-sustain-rally

MYR 380 mil

QR report tmr. Announcement to mainboard soon!

https://www.theedgemarkets.com/article/all-eyes-semperit-it-delays-sale-latexx-partners

TIATE COVERAGE
Greatech Technology (GREATEC MK)
Direct Proxy To Growth With Unique Positioning For Fourth Industrial Revolution
Greatech offers an unique proposition beyond the typical ATE, which also automates processes in production lines. Its strategic exposure in the solar, medical and automotive industries offers better dynamics to weather cyclicality vs peers. Besides the new facility in Bayan Lepas, the group has also started construction of its Batu Kawan plant and new offices in the US, with completion targeted in 2021, to support growth beyond. Initiate coverage with BUY and target price of RM4.80.
 Still ample growth with strong orderbook visibility until 2021. First Solar (FS), the biggest revenue contributor to Greatech Technology (Greatech), is still transitioning its high-performance, eco-efficient Series 6 photovoltaic (PV) modules from the Series 4 PV modules. FS reiterated in its May 20 briefing that the ongoing Series 6 capacity ramp-up remains unchanged with capex of US$450m-550m in 2020. This is supported by an intact 12.3GW contracted backlogs and a 7.5GW in mid-to-late stage opportunity pipeline. As the largest automated equipment supplier for FS, we believe Greatech could continue to ride on FS’ growth, as evidenced by its strong ytd orderbook of RM215m.
 Portfolio diversification with exposure to strategic sectors to smoothen cyclicality. The group has made efforts to venture into other sectors beyond the solar industry which has been its bread-and-butter business. Note that its R&D activities for the assembly of battery modules and packs for automotive applications are translating into orders now. Meanwhile, under the medical segment, new R&D projects involving automation solutions for diabetes and inhaler related products, will contribute to revenue from 2020. This portfolio exposure, which offers the blend of high growth (robust demand for solar energy) and resiliency (EV battery and medical), provides the group flexibility in adjusting to cyclicality.
 Capacity relocation and expansion to support strong earnings growth. Besides the new operational facility - Plot 287A (built-up 75,000sf) - which will be used to cater to new customers in different sectors, Greatech has started construction of its Batu Kawan plant with completion targeted in Feb 21. The group will move from its rented premises to the 130,000sf plant which is at close proximity to the group’s head office in Bayan Lepas. The group is also setting up offices in the US and Europe to provide engineering sales and service support to customers; with expenses at <RM10m but providing huge door-opening potential. The new business from the EV battery and medical segments, with potential revenue of >RM50m in 2020, is a testament to it.
 Initiate coverage with BUY and target price of RM4.80, based on 30.0x 2021F PE, which implies a PEG ratio of 0.7x. Note that the ascribed PE is also at 10% discount from the industry forward PE. Its unique value proposition as opposed to peers has made it a scarce ATE player in the technology space. Resilient earnings base, superior growth outlook and its new business venture will support a 3-year (2018-21) net profit CAGR of 46%. The stock is currently trading close to +1SD above its the industry’s 5-year mean PE of 24.0x, but we believe its above-sector growth alongside strategic portfolio proposition would justify a higher valuation, not to mention the valuation re-rating from a potential transfer to the Bursa Main Market in 4Q20.
Thursday, 2 July 2020
BUY
Share Price
Target Price
Upside 24.0%
COMPANY DESCRIPTION
Greatech Technology manufactures automated equipment. Its products range from single automated equipment to a production line system which comprises multiple automated equipment.
STOCK DATA
GICS sector
Bloomberg ticker
Shares issued (m)
Market cap (RMm)
Market cap (US$m)
3-mth avg daily t'over (US$m)
KEY FINANCIALS
Year to 31 Dec (RMm)
Net Turnover
EBITDA
Operating Profit
Net Profit (Reported/Actual) Net Profit (Adjusted)
EPS (sen)
PE (x)
P/B (x)
EV/EBITDA (x)
Dividend Yield (%)
Net Margin (%)
Net Debt/(Cash) to Equity (%) Interest Cover (x)
ROE (%)
Consensus Net Profit UOBKH/Consensus (x)
Source: Greatech, Bloomberg, UOB Kay Hian
2020F 2021F
255.0 330.0
91.8 119.9 141.8 84.7 110.8 132.7
4.0 0 3.0 0 2.0 0 1.0 0
0.0 0
30
20 Volume(m)
10
0
Jul 19 Sep 19
Source: Bloomberg
ANALYST

Desmond Chong

+60321471980
desmondchong@uobkayhian.com

The Edge Malaysia June 15 2020
Greatech Technology - a big fish in a small pond
https://digital.theedgemalaysia.com/theedgemediagroup/books/tem/2020/20200615tem