Greatech Technology "Record high backlog signals earnings inflection" (Buy) Koh

研报英文原文证据摘录

Greatech Technology "Record high backlog signals earnings inflection" (Buy) Koh

Global Research

8 June 2026ab

Greatech Technology Equities

MalaysiaRecord high backlog signals earnings inflection

Electric Components & Equipment

12-month rating Buy

Orderbook strength to drive near-term earnings recovery

We remain positive on Greatech's prospects for a potential upward re-rating, driven by 12m price target RM3.30

rebound in its earnings delivery in the coming quarters. While its Q126 earnings were Prior : RM2.50

soft (see here), we think this may be temporary. Greatech's outstanding order book

Price (05 Jun 2026) RM2.57

grew 66% QoQ to a record high of RM1.7bn, of which ~55% of the growth can be

attributed to data centre related projects which have a short delivery timeline of ~1 year. RIC: GREA.KL BBG: GREATEC MK

Therefore, we think the solid pace of project wins will lead to meaningful revenue

Trading data and key metrics

increase in the coming quarters, driving a rebound in earnings. We reiterate our Buy

52-wk range RM2.74-1.46

rating on Greatech.

Market cap. RM6.44b/US$1.60b

Strategic upfront investments set stage for the upcoming growth cycle Shares o/s 2,504m (ORD)

Free float 26%

Before the strong order intake, we noted that Greatech has been incurring upfront

expenditures in recent years in: 1) expanding its workforce by ~40%; and 2) doubling its Avg. daily volume ('000) 7,601

floor space capacity over the past 3 years. We see these as Greatech’s strategic moves in Avg. daily value (m) RM18

an attempt to broaden its customer base and positioning itself strategically for the next Common s/h equity (12/26E) RM1.20b

growth cycle. Although these have subsequently led to a ~30% increase in cost base (in P/BV (12/26E) 5.4x