Maybank Investment Bank Berhad
Date of Report: August 24, 2025
Greatech Technology: Poised for Growth with Anticipated Contract Wins and Strong Market Position
Overview: Greatech Technology in the Spotlight
Greatech Technology, a leading automation specialist based in Malaysia, remains a standout in the factory automation space, particularly for customizable capital equipment serving high-growth sectors such as solar photovoltaic (PV) and electric vehicles (EVs). With its Shariah-compliant status and robust exposure to global marquee names across technology, energy storage, medical, and semiconductor industries, Greatech is well-positioned to capitalize on industry tailwinds.
Brokerage Outlook: Upgraded Target Price, BUY Rating Maintained
Maybank Investment Bank Berhad reaffirms its BUY call on Greatech Technology, raising the target price to MYR2.28 (from MYR1.95), implying an 18% upside from the current share price of MYR1.94. This revision reflects increased confidence in the company’s FY25E–FY27E earnings, now forecasted to be 9–10% higher on expectations of fresh contract wins and improved customer visibility following favorable US tariff adjustments.
Key Highlights and Performance Review
- Results in Line with Expectations: 1H25 core net profit of MYR76m (-9% YoY) met both internal and consensus estimates, accounting for 45% of full-year projections.
- Revenue Growth: 1H25 revenue climbed 14% YoY to MYR408m, driven by robust demand in E-Mobility and semiconductor production line systems.
- Margin Pressures: EBIT margin contracted 6.6 percentage points YoY to 17.9%, mainly due to higher material costs as many projects were in the assembly phase.
- Quarterly Surge: 2Q25 revenue jumped over 33% QoQ to MYR233m, with higher revenue recognition from E-Mobility and semiconductor segments.
- Orderbook Strength: As of August 2025, the orderbook stood at MYR608m, with management anticipating an additional MYR700m in new orders by year-end.
Financial Performance Snapshot
| Metric |
2Q25 |
1Q25 |
2Q24 |
YoY Change |
QoQ Change |
| Revenue (MYR m) |
233.0 |
175.4 |
205.9 |
+13.2% |
+33.0% |
| EBIT (MYR m) |
72.9 |
43.2 |
52.6 |
+38.6% |
+68.6% |
| Recurring Net Profit (MYR m) |
76.0 |
39.3 |
50.0 |
+52.0% |
+93.3% |
| EBIT Margin (%) |
17.9 |
24.6 |
25.5 |
-7.7 ppt |
-6.8 ppt |
| Net Profit Margin (%) |
18.6 |
22.4 |
24.3 |
-5.7 ppt |
-3.8 ppt |
Orderbook & Segmental Targets: A Closer Look
Management reported a MYR608m orderbook as of August 2025, with MYR67m in new orders during 2Q25. The company remains optimistic about securing an additional MYR700m in orders by the end of the year, mainly across solar, medical, and energy storage segments.
| Segment |
Target (MYR m) |
Secured (MYR m) |
| Solar |
200 |
41 |
| E-Mobility |
600 |
46 |
| Life Sciences |
200 |
26 |
| Consumer Electronics |
100 |
6 |
| Semiconductor |
100 |
38 |
| Energy Storage |
100 |
5 |
| Others |
150 |
– |
| Total (excluding E-Mobility) |
850 |
162 |
Financial Forecasts and Upgrades
Maybank has revised upwards its FY25E–FY27E forecasts by 9–10% to reflect anticipated 2H25 wins. Revenue is projected to increase steadily, with margin expansion expected as projects move from assembly to commissioning and delivery phases.
| Year |
Revenue (MYR m) |
EBIT (MYR m) |
Core Net Profit (MYR m) |
Core EPS (sen) |
Core P/E (x) |
ROAE (%) |
Net Gearing (%) |
| FY23A |
659 |
167 |
151 |
6.0 |
39.7 |
23.2 |
net cash |
| FY24A |
752 |
181 |
146 |
5.8 |
39.2 |
18.9 |
net cash |
| FY25E |
782 |
187 |
170 |
6.8 |
28.7 |
17.3 |
net cash |
| FY26E |
911 |
228 |
205 |
8.2 |
23.7 |
17.5 |
net cash |
| FY27E |
1,020 |
256 |
230 |
9.2 |
21.1 |
16.6 |
net cash |
Balance Sheet Strength and Cash Flow Resilience
Greatech maintains a robust balance sheet, consistently holding a net cash position throughout the forecast period. With a healthy current ratio (2.2x in FY23A, rising to 3.7x by FY27E) and strong free cash flow generation, the company is well-equipped to support growth initiatives and any uptick in capital expenditure.
Valuation and Share Performance
- Valuation: The stock is valued at 28.7x FY25E P/E, moderating to 21.1x by FY27E as earnings are expected to outpace share price appreciation.
- Price Performance: Over the past year, Greatech’s share price has fluctuated between MYR2.42 and MYR1.12, with a 12-month return of -22% (absolute) and -20% (relative to the index). However, more recent momentum has turned positive, with 1-month and 3-month returns of 17% and 20%, respectively.
- Dividend Policy: No dividends are forecasted for the period under review as the company prioritizes reinvestment and growth.
Key Risks to Watch
- Sector Volatility: A downturn in the PV/EV industries could materially impact earnings.
- Forex Exposure: With over 95% of revenue and around 25% of COGS denominated in USD, forex fluctuations (especially USD/MYR) represent a notable risk.
Ownership and Corporate Profile
- Major Shareholders: Tan Eng Kee (52.4%), AIA Bhd. (4.2%), Lembaga Tabung Haji (3.1%).
- Company Description: Greatech is a niche automation specialist with a focus on customizable capital equipment for solar PV and EV manufacturing.
- Market Capitalization: MYR4.9 billion (USD1.2 billion) with 2,511 million shares issued.
Conclusion: Greatech Technology—Compelling Opportunities Ahead
With its strong market position, expanding orderbook, and clear runway for earnings growth, Greatech Technology is set to benefit from tailwinds in automation, renewable energy, and advanced manufacturing. Despite margin headwinds in the short term, the company’s balance sheet strength and strategic reinvestment position it favorably for long-term capital appreciation. Maybank Investment Bank Berhad’s upgraded target price and positive outlook underline Greatech’s status as a top pick in Malaysia’s technology sector.
Contact Information
For further inquiries, investors may contact Lucas Sim (Technology Analyst) at Maybank Investment Bank Berhad.
