KUALA LUMPUR: Genetec Technology Bhd's participation in Thailand's electric vehicle (EV) ecosystem development via a potential partnership with Asia Precision Public Company Ltd (APCS) could bring exciting prospects to the company.
CGS-CIMB Research said Genetec might leverage APCS' contract manufacturing service of precision metal parts for automotive customers.
"We gather that APCS supplies battery pack covers for a leading renewable energy player in Thailand, whose 1GWh lithium-ion battery plant in Thailand recently commenced operations," it said in a research report today.
CGS-CIMB Research said Genetec had recently secured RM60 million worth of new orders, bringing its orderbook to RM198 million.
Of the total, RM50 million are related to the EV and energy storage (ES) and e-mobility segments, and the remaining to the hard disk drive segment.
"Most of the new orders for the EV and ES segment are related to the pilot line for its North America customer's ES expansion plan in California."
CGS-CIMB Research said Genetec expected more order replenishment in EV and ES and e-mobility solutions from its North America EV and tier I automotive customers in the financial year ending March 31, 2023 (FY23).
CGS-CIMB Research has reiterated an 'Add' call for Genetec with a higher target price of RM4.30, with earnings per share rising to eight per cent between FY22 and FY24, after accounting for higher-order replenishment.