Greatech Technology: Expecting a Strong Catch-Up in 2H

Greatech Technology’s 1HFY26 core profit fell 34.2% year-on-year to RM54.6 million, missing market expectations due to delayed revenue recognition in its E-Mobility, Life Sciences, and energy sectors. However, operations remain at high capacity, with a record RM1.8 billion order book expected to drive a strong second-half recovery.

PIB says excluding the i) unrealised gains on foreign exchange (FX) (RM10.9m), ii) realised losses on FX (5.1m), and iii) provision for warranties (RM1.8m) and others, Greatech Technology posted 1HFY26 core profit of RM54.6m, down 34.2% YoY.

The lower profit was mainly due to slower sales recognition in the E-Mobility, Life Sciences, and energy segments, partially offset by stronger sales from the Data Centre and Semiconductor segments due to timing differences in sales recognition across sectors.

Greatech Technology

“The results were below our and the street’s full-year expectations of 31.6% and 30%, respectively. Nevertheless, we expect a strong catch-up in 2H, supported by a record outstanding order book of RM1.8bn. Management also shared the current capacity is running at high level with 2 shifts in place. Maintain Neutral call with an unchanged TP of RM2.50 based on 33x FY27 EPS.”

#businessnews