KUALA LUMPUR (Feb 23): Greatech Technology Bhd posted its highest annual profit for the financial year ended Dec 31, 2023 (FY2023), and remains optimistic about sustaining its momentum into the year 2024, despite challenges in the broader economic landscape.

The group’s net profit climbed 17% to RM154.37 million in FY2023, as compared to RM131.89 million recorded in FY2022, while its full-year revenue rose 20.6% to RM658.75 million in FY2023, from RM546.21 million a year earlier.

In a bourse filing on Friday, the group attributed the increase in its profitability to a stronger order book and lower project expenditure incurred as compared to the preceding year, during which the global supply chain was impacted by bottlenecks, resulting in higher material and component costs.

Subsequently, its basic earnings per share increased to 12.32 sen per share, from 10.53 sen.

The group did not recommend any dividend.

For the quarter under review (4QFY2023), net profit increased by 12.8% to RM41.55 million from RM36.82 million, despite its revenue falling 8.6% to RM154.64 million from RM169.11 million, due to lower revenue recognised from its production line system.

Quarter-on-quarter (q-o-q), Greatech’s net profit fell 11% from its record of RM46.66 million in 3QFY2023. Similarly, revenue was down 31.2% from RM224.82 — its highest quarterly profit — which it said was “influenced by schedules of customer projects”.

It noted, however, that q-o-q margins improved due to lower project expenditure, “as there is lesser projects in the fabrication and assembly stage, offset by higher packing and travelling expenses incurred for the shipment, installation and commissioning of machine abroad”.

Looking ahead, Greatech said it is encouraged by the resilience and ongoing investment interest displayed by its global customers, particularly within the life science, e-mobility and solar industries.

“The acquisition of the Irish-based automation company and the expected completion of the fourth factory at Batu Kawan Industrial Park, Penang, position the group well to navigate through economic uncertainties and drive sustainable growth,” it stated.

According to Greatech, the group is expected to have a capital expenditure of RM105 million this year, which includes the acquisition of land in Batu Kawan Industrial Park. Meanwhile, its outstanding order book, which reportedly stood at RM1.04 billion, is expected to last until the first half of 2025.

“The group is confident to generate more orders in 2024, especially in the e-mobility, life science and solar industries,” it added.

At Friday’s market close, the counter saw its share price up by three sen or 0.62% to RM4.90, giving it a market capitalisation of RM6.15 billion.