Greatech Technology Berhad Reports Mixed Quarterly Results
Kuala Lumpur, October 2023—Greatech Technology Berhad (KLSE:GREATEC) has experienced a positive spike in its stock price, rising 7.5% to RM1.73 after its recent quarterly earnings announcement. The company reported revenues of RM175 million, which fell short of analyst expectations by 31%. However, its statutory earnings per share (EPS) of RM0.062 met forecasts, maintaining investor confidence.
In response to the quarterly results, analysts have updated their earnings models, forecasting a revenue of RM795.9 million for 2025—a modest increase of 2.6% compared to the previous year. This revision reflects a downgrade from earlier estimates of RM832.4 million in revenue and an EPS forecast of RM0.068. The reduced forecasts hint at a less optimistic outlook for future performance.
Despite these adjustments, analysts have held the consensus price target steady at RM1.99, indicating that the overall changes are not deemed significant to the company’s intrinsic value. Price targets among analysts show a spread, ranging from as high as RM2.57 to a conservative RM1.50, highlighting a diversity of opinions on Greatech’s potential.
Greatech’s anticipated revenue growth rate of 3.5% annually up to 2025 stands in stark contrast to its historical growth rate of 25% per year. This slowdown positions the company below the industry average growth rate of 10%.
Particularly concerning are the downgrades in earnings estimates, suggesting potential headwinds for Greatech. While the consensus price target remains unchanged, investors are advised to consider the long-term trajectory and inherent risks surrounding the company’s performance.
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