Maybank IB raises Greatech target price to RM8.45, maintains 'buy' rating

KUALA LUMPUR, Jan 26  -- Maybank Investment Bank (IB) has raised its target price (TP) for Greatech Technology Bhd’s (Greatech) shares for financial year 2022 (FY22) to RM8.45 per unit from RM8.05 previously, while maintaining its 'buy' rating for the company’s shares.

In its research note today, it said this is premised on favourable prospects from Greatech’s customers in key growth industries, thus it believes that the valuations for the stock are undemanding and represents deep-value at prevailing prices.

“We have introduced estimates for FY24 and raised our core earnings estimates for the company’s FY22 and FY23 by 23 per cent and 31 per cent, respectively, underpinned by robust demand and the ongoing capacity expansion at its BK III (to be operational by mid-2022) and BK IV plants,” it said.

The research firm said with the new orders the company had recently secured for production line systems worth RM160 million, Greatech is on course to add a further RM568 million to its burgeoning orderbook in FY22. 

In a recent filing with Bursa Malaysia, the leading automation solutions provider in the field of factory automation said it expects positive development in the solar sector in 2022 and 2023, with the opportunities presented by worldwide green initiatives and increased usage of renewable energy. 

The company expects the orders to contribute positively to the group’s revenue in 2022 and 2023.

At 10.44 am, Greatech’s share price was one sen higher at RM4.81 with 1.88 million shares traded. 

-- BERNAMA