KUALA LUMPUR (Nov 23): Greatech Technology Bhd's net profit rose 41.3% to RM40.97 million in the third quarter ended Sept 30, 2022 (3QFY2022), from RM29 million in the same quarter a year earlier, as revenue expanded 64.53%, lifted by several orders from the solar industry under its production line systems segment.
Earnings per share grew to 3.27 sen from 2.32 sen previously, its filing with Bursa Malaysia showed.
Revenue for 3QFY2022 jumped to RM156.85 million, from RM95.33 million in 3QFY2021.
Greatech posted a higher gross profit of RM49.59 million despite a lower gross profit margin of 31.61% as compared to RM34.11 million and 35.78% respectively in the prior year's corresponding quarter.
"The decline in the current quarter's gross profit margin was primarily impacted by higher employees' compensation and benefits expenses arising from increased employee headcounts," the group said.
For the nine months ended Sept 30 (9MFY2022), Greatech's net profit, however, fell 16.64% to RM95.06 million from RM114.04 million, despite revenue growing 15.38% to RM377.1 million from RM326.83 million.
This is because its gross profit dropped amid higher administrative and marketing expenses attributable to the increase in local employees headcounts, and share grant expenses of RM5.13 million, and other expansion-related expenses of RM2.3 million.
Looking ahead, Greatech is confident of navigating the current macroeconomic uncertainty and volatility in the global supply chain that led to extended project build times, which have impacted the group's operational efficiencies and margins.
"Ongoing mitigation of global supply chain disruption such as investing in inventory, price management practices and other actions have been implemented to monitor macroeconomic challenges and key margin drivers," it said.
To ensure that it is well positioned to serve customers in resilient end markets, the group's board has approved a RM120 million worth of investment to build a new 500,000 sq ft facility on a 11.58 acre site in Batu Kawan Industrial Park, Penang, which will commence operations towards the end of 2023.
The investment, it said, will significantly expand its capacity to help customers create a low carbon, safer and sustainable world.
Shares of Greatech closed up six sen or 1.57% to RM3.88 on Wednesday (Nov 23), giving the group a market value of RM4.86 billion.
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