Greatech Technology Berhad (KLSE:GREATEC) - Share price, News & Analysis

GREATEC fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	6/6
Past Performance	6/6
Financial Health	6/6
Dividends	0/6

GREATEC Overview

Greatech Technology Berhad, an investment holding company, manufactures and sells automated equipment primarily in Malaysia.

Rewards

Earnings are forecast to grow 25.17% per year

Earnings grew by 110.2% over the past year

Risk Analysis

No risks detected for GREATEC from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Greatech Technology Berhad
Historical stock prices
Current Share Price	RM7.50
52 Week High	RM3.00
52 Week Low	RM7.60
Beta	1.49
1 Month Change	8.54%
3 Month Change	36.36%
1 Year Change	138.10%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	1,927.03%

Shareholder Returns

	GREATEC	MY Semiconductor	MY Market
7D	5.9%	3.7%	-0.7%
1Y	138.1%	112.0%	6.2%

Return vs Industry: GREATEC exceeded the MY Semiconductor industry which returned 112% over the past year.

Return vs Market: GREATEC exceeded the MY Market which returned 6.2% over the past year.

Price Volatility

Is GREATEC's price volatile compared to industry and market?
GREATEC volatility
GREATEC Beta	1.49
Industry Beta	1.13
Market Beta	1

Stable Share Price: GREATEC is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GREATEC's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1997	522	Eng Tan	https://greatech-group.com

Greatech Technology Berhad, an investment holding company, manufactures and sells automated equipment primarily in Malaysia. The company offers production line systems and single automated equipment. It provides automated equipment for photovoltaics and thin-film module technology in solar industry; mobile devices for engineering, manufacturing, and integration of automated and custom process solutions; semiconductors; and glass substrates.

Greatech Technology Berhad Fundamentals Summary

How do Greatech Technology Berhad's earnings and revenue compare to its market cap?
GREATEC fundamental statistics
Market Cap	RM9.39b
Earnings (TTM)	RM136.77m
Revenue (TTM)	RM383.67m

68.7x

P/E Ratio

24.5x

P/S Ratio

Is GREATEC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GREATEC income statement (TTM)
Revenue	RM383.67m
Cost of Revenue	RM214.27m
Gross Profit	RM169.40m
Expenses	RM32.63m
Earnings	RM136.77m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.11
Gross Margin	44.15%
Net Profit Margin	35.65%
Debt/Equity Ratio	4.4%

How did GREATEC perform over the long term?

See historical performance and comparison

Valuation

Is Greatech Technology Berhad undervalued compared to its fair value and its price relative to the market?

68.66x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: GREATEC (MYR7.5) is trading above our estimate of fair value (MYR3.08)

Significantly Below Fair Value: GREATEC is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: GREATEC is poor value based on its PE Ratio (68.7x) compared to the MY Semiconductor industry average (66.7x).

PE vs Market: GREATEC is poor value based on its PE Ratio (68.7x) compared to the MY market (16.3x).

Price to Earnings Growth Ratio

PEG Ratio: GREATEC is poor value based on its PEG Ratio (2.7x)

Price to Book Ratio

PB vs Industry: GREATEC is overvalued based on its PB Ratio (25.1x) compared to the MY Semiconductor industry average (5x).

Future Growth

How is Greatech Technology Berhad forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

25.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GREATEC's forecast earnings growth (25.2% per year) is above the savings rate (3.6%).

Earnings vs Market: GREATEC's earnings (25.2% per year) are forecast to grow faster than the MY market (10.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GREATEC's revenue (25.1% per year) is forecast to grow faster than the MY market (6.6% per year).

High Growth Revenue: GREATEC's revenue (25.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GREATEC's Return on Equity is forecast to be high in 3 years time (36.5%)

Past Performance

How has Greatech Technology Berhad performed over the past 5 years?

39.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GREATEC has high quality earnings.

Growing Profit Margin: GREATEC's current net profit margins (35.6%) are higher than last year (30.2%).

Past Earnings Growth Analysis

Earnings Trend: GREATEC's earnings have grown significantly by 39.6% per year over the past 5 years.

Accelerating Growth: GREATEC's earnings growth over the past year (110.2%) exceeds its 5-year average (39.6% per year).

Earnings vs Industry: GREATEC earnings growth over the past year (110.2%) exceeded the Semiconductor industry 83.3%.

Return on Equity

High ROE: GREATEC's Return on Equity (36.6%) is considered high.

Financial Health

How is Greatech Technology Berhad's financial position?

Financial Position Analysis

Short Term Liabilities: GREATEC's short term assets (MYR482.3M) exceed its short term liabilities (MYR189.4M).

Long Term Liabilities: GREATEC's short term assets (MYR482.3M) exceed its long term liabilities (MYR25.6M).

Debt to Equity History and Analysis

Debt Level: GREATEC's debt to equity ratio (4.4%) is considered satisfactory.

Reducing Debt: GREATEC's debt to equity ratio has reduced from 28.7% to 4.4% over the past 5 years.

Debt Coverage: GREATEC's debt is well covered by operating cash flow (1487.1%).

Interest Coverage: GREATEC earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Greatech Technology Berhad current dividend yield, its reliability and sustainability?

0.23%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate GREATEC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GREATEC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GREATEC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GREATEC's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GREATEC's dividend in 3 years as they are not forecast to pay a notable one for the MY market.

Next Steps

Explore strong dividend paying companies in the Semiconductors industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure

CEO

Eng Tan (50 yo)

3.33yrs

Tenure

RM60,000

Compensation

Mr. Eng Kee Tan has been the Chief Executive Officer and Executive Director at Greatech Technology Berhad since May 14, 2018. Mr. Tan is one of Greatech's founding shareholders since the incorporation of G...

CEO Compensation Analysis

Compensation vs Market: Eng's total compensation ($USD14.34K) is below average for companies of similar size in the MY market ($USD516.45K).

Compensation vs Earnings: Eng's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: GREATEC's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: GREATEC's board of directors are considered experienced (3.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2021/09/24 15:44
End of Day Share Price	2021/09/24 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data