Greatec AGM analysis

Having just listened to Greatec AGM, the boss is very confident about the company's future prospects.

Management has also prepared a blueprint plan for the next 10 years.

The future can be expected.

As is well known, GreateC's company has a total of 4 major segments.

They are Solar, e-Mobility, Semiconductor, and Life Science, respectively.

Currently, Solar and e-Mobility each account for 85% of Greatec's order book value.

Management also said that currently the Solar business has no plans to find new customers.

The only customer was First Solar, and the company was too late to do it.

Currently, the e-mobility market is slowing down, mainly due to the slow growth of the global electric vehicle market.

However, management believes that the e-Mobility market will improve next year.

Currently Greatec's e-mobility business,

This includes making batteries (modules & packs) and drive units.

There are currently 3 customers, and another potential customer will start placing orders in the next few months.

After that, the capacity was full, and the management was not looking for e-mobility customers for the time being.

Regarding Life Science, it is still a baby being nurtured by Greatec.

The CEO said that next we need to focus on nurturing this kid.

Life Science has a lot of room to grow.

His Life Science competitor's order book for a year can go from 7bil to 8bil.

Greatec's Life Science target book value this year is around RM200mil.

As of today, his book value is RM62 mil.

Management expects to get orders close to RM70mil next week.

Therefore, management is very confident that the target set will be surpassed this year.

Currently there are 2 existing customers and 10 potential customers

It is expected that the next 3 years will focus on developing the life science sector.

Seminconductor accounts for less than 2.5% of the company's order book value,

The proportion is very small.

Currently, they are working on VR, AI (Component Level), and high-precision pick & place.

The RM1.01bil order book value shown in the QR will be completed in the first half of next year.

The proportion of this RM1.01bil order book value is,

Solar (60%), e-Mobility (25.5%), Life Science (12.1%), and others (2.4%).

Greatec's new BK4 plant was officially used on May 21 this year. It is about 1.4 mil square meters.

It is expected that this BK4 will bring more orders to the company.

However, BK5's plans have been delayed.

Because PDC and Invest Penang rejected Greatec's land application in Batu Kawan,

They want Greatec to open in Penang Science Park.

Negotiations are still ongoing, and Greatec still hopes to open in Batu Kawan.

The location is more advantageous.

Greatec's Capex is expected to remain above RM100 mil this year, or around RM105 mil.

From 2019 to 2024, Greatec's CAPEX was close to RM500 mil in 6 years.

This also proves that the company continues to grow and buy land to obtain more projects.

At present, the number of employees in the company has reached 1,511, and it is expected that they will continue to recruit people

Management expects the number of employees to reach 1,800 this year.

Management expects the new order book value to be as high as RM1.1 bil this year

They are Solar (RM400mil), e-Mobility (RM400mil),

Life Science (RM200mil) and Semicon Automation (RM100mil).

As of today, this year's order book value is RM177mil.

Management anticipates that US sanctions against China's solar panels will also benefit GreateC's Order.

The management has a complete big blueprint to know 2032,

From 2023 to 2027, the company will fully focus on factory automation.

This series includes solar, e-mobility, life science, and semicon.

Net margin is expected to be between 20%-25%.

Then, starting in 2028, management will begin to focus on process automation,

Process automation is more about developing software.

Management also anticipates the net margin of this process automation

It will be higher than factory automation.

Overall, Greatec is a company with good plans in both small and large directions.

Currently, the factory's utilization rate is about 70%-80%,

Mainly because management deliberately set aside 20% for unforeseen needs.