Thursday 28 Mar 2024
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KUALA LUMPUR (July 8): Genetec Technology Bhd’s share price erased gains in Bursa Malaysia morning trade today after rising past RM18 to its new record high as investors took profit following the sharp rise in the industrial automation specialist's share price in recent days.

At 10:16am today, Genetec’s share price fell 68 sen or 3.78% to RM17.30 to become Bursa’s top decliner. Genetec had earlier today risen 52 sen or 2.89% to its new record high at RM18.50.

Genetec’s share price, which closed at RM3.76 on June 4, 2021, had risen sharply to current levels as investors weigh the company’s exposure to the global electric vehicle (EV) market.

Investors who monitor Genetec’s corporate updates would have also noticed that its largest shareholder Chen Khai Voon had in recent days raised his stake in the company and that the group had issued new shares following the exercise of options under Genetec’s employees' share option scheme (ESOS). 

Yesterday (July 7), Genetec said in a Bursa filing that the company had issued 100,500 new shares at RM1.37 each following the exercise of options under Genetec’s ESOS.

Genetec said that following the issuance of the 100,500 new shares, the company’s latest number of issued shares stood at 50.44 million.

Based on the latest number of issued shares, Genetec’s record high share price of RM18.50 today yielded a market capitalisation of about RM933.14 million.

On Tuesday (July 6), Genetec said in a Bursa filing that Chen had raised his combined direct and indirect stake in the company to 18.288% comprising 9.23 million shares after acquiring on the same day 86,200 shares on the open market. The 18.288% stake comprises direct and indirect portions of 11.169% and 7.129% respectively, Genetec said.

The company said Chen’s indirect stake is held via KVC Corp Sdn Bhd.

Investors could have also taken their cues from CGS-CIMB Securities Sdn Bhd’s recent report on Genetec.

On Monday (June 28), CGS-CIMB analysts Walter Aw and Mohd Shanaz Noor Azam wrote in the report that Genetec is confident it can benefit from growing demand for EV vehicles worldwide.

According to the analysts, Genetec claimed it made a breakthrough in producing smart factory automation systems for EVs, energy storage and autonomous driving in 2020. 

"The group plans to ride on the structural shift in the global automotive industry from internal combustion engines towards EVs.

"Based on the Global EV Outlook 2021 published by the International Energy Agency (IEA) in April 2021, the global electric car stock reached 10.2 million in 2020 (+43% year-on-year [y-o-y]). While the global car market dipped 16% y-o-y in 2020 due to the negative impact of the Covid-19 pandemic on the economy, global electric car sales rose 51% y-o-y to 3.1 million units.

"Under the sustainable development scenario initiatives, the IEA expects the global electric car stock to reach up to 204 million units by 2030,” the analysts said.

Edited ByChong Jin Hun
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