Curious about how a Malaysian tech powerhouse is navigating global headwinds and still delivering impressive results? Greatech Technology Berhad, a leader in automated equipment and services, has just released its unaudited interim financial report for the first quarter ended 31 March 2025. This report paints a picture of resilience and strategic positioning, showing solid growth compared to the same period last year, even as it manages the natural ebb and flow of project cycles.
The headline figures are certainly eye-catching: a significant increase in revenue and profit before tax when benchmarked against the first quarter of last year. This performance highlights the company’s ability to enhance its operational efficiency and capitalize on growing demand in key sectors. Let’s dive deeper into the numbers and what they mean for Greatech’s journey ahead.
Core Data Highlights: A Closer Look at Greatech’s Performance
A Strong Start to 2025: Comparing Performance with the Same Period Last Year
Greatech Technology Berhad kicked off 2025 with robust financial growth when compared to the first quarter of 2024. The company’s strategic focus on high-growth sectors, particularly the E-Mobility and Solar sectors, has clearly paid off, driving substantial increases in both revenue and profitability.
1Q2025
Revenue: RM175.39 million
Gross Profit: RM58.45 million
Gross Profit Margin: 33.33%
Profit Before Tax (PBT): RM42.95 million
PBT Margin: 24.49%
Earnings Per Share (Basic): 1.47 sen
1Q2024
Revenue: RM151.86 million
Gross Profit: RM35.86 million
Gross Profit Margin: 23.62%
Profit Before Tax (PBT): RM34.60 million
PBT Margin: 22.78%
Earnings Per Share (Basic): 1.28 sen
Revenue for the first quarter of 2025 grew by 15.49% to RM175.39 million, primarily fueled by higher revenue recognition from Production Line System (PLS) projects within the E-Mobility and Solar sectors. This growth translated into an even more impressive increase in Gross Profit, which surged by 62.99% to RM58.45 million. The Gross Profit Margin also saw a significant improvement, rising from 23.62% to 33.33%. This indicates better cost absorption and enhanced operating leverage.
Profit Before Tax (PBT) for 1Q2025 increased by 24.14% to RM42.95 million. Despite some offsetting factors like a net foreign exchange position change and movements in impairment of contract assets and trade receivables, the overall increase in Gross Profit was the primary driver of this improved PBT. Basic Earnings Per Share also saw a healthy rise of 14.84%, reaching 1.47 sen.
Navigating Project Cycles: Performance Compared to the Immediate Preceding Quarter
While Greatech showed strong year-on-year growth, its performance in the first quarter of 2025 saw a sequential decrease compared to the fourth quarter of 2024. This is largely attributable to the natural cycle of large-scale projects, where revenue recognition can fluctuate based on the project phase.
1Q2025
Revenue: RM175.39 million
Gross Profit: RM58.45 million
Gross Profit Margin: 33.33%
Profit Before Tax (PBT): RM42.95 million
PBT Margin: 24.49%
4Q2024
Revenue: RM205.83 million
Gross Profit: RM65.87 million
Gross Profit Margin: 32.00%
Profit Before Tax (PBT): RM63.64 million
PBT Margin: 30.92%
Revenue for 1Q2025 saw a decrease of 14.79% compared to the fourth quarter of 2024. This was primarily due to the Group entering the design and planning phase of a significant new project, which naturally results in lower initial revenue recognition. However, the company anticipates this project will contribute meaningfully to revenue in subsequent quarters as execution progresses.
Despite the lower revenue, the Gross Profit Margin actually improved from 32.00% in 4Q2024 to 33.33% in 1Q2025, driven by lower project-related expenses during the quarter. The Profit Before Tax (PBT) decreased by RM20.69 million, mainly due to a net foreign exchange loss of RM2.82 million in 1Q2025, contrasting sharply with a net foreign exchange gain of RM14.74 million in 4Q2024. This shift was largely influenced by the strengthening of the US Dollar against the Malaysian Ringgit in the previous quarter.
Financial Health Snapshot
Greatech’s balance sheet remains robust, reflecting a healthy financial position. As of 31 March 2025, total assets stood at RM1,161.65 million, an increase from RM1,112.27 million at the end of 2024. Total equity also grew to RM947.16 million from RM909.29 million, pushing the Net Assets Per Share attributable to owners of the parent to RM0.3771.
A notable change in current assets is the significant increase in Contract Assets to RM271.21 million from RM162.46 million, indicating a healthy pipeline of ongoing projects that will convert to revenue in the future. Meanwhile, Trade and Other Receivables decreased to RM92.43 million from RM151.36 million. Cash and cash equivalents stood at RM230.59 million, a slight decrease from RM232.82 million at the end of 2024, primarily due to lower cash generated from operations this quarter compared to the same period last year.
Risk and Prospect Analysis: Navigating a Dynamic Landscape
The global economic environment continues to present a mix of volatility and uncertainty, influenced by shifting government policies, ongoing tariff disputes, and heightened geopolitical tensions. Despite these external headwinds, Greatech Technology Berhad has demonstrated resilience, with tariffs and trade barriers having no direct financial impact on its operations during the quarter. The company remains proactive, closely monitoring global developments and prepared to implement mitigating measures if conditions change.
Greatech’s strategy is clear: focus on what’s within its control. The Group maintains a disciplined cost structure while making selective, strategic investments designed to bolster its long-term competitiveness and innovation capabilities. This commitment to value creation for stakeholders remains unwavering, regardless of market challenges.
Malaysia’s neutral stance and strong compliance record continue to position Greatech as a trusted partner within the crucial U.S. solar and electric vehicle supply chains. The company reports that orders remain intact, with ongoing customer engagement despite a cautious demand environment. Looking ahead, Greatech remains optimistic about growth prospects, particularly in the U.S. market and beyond. Its manufacturing excellence, focus on sustainability, and strategic positioning are expected to enable it to capitalize on emerging opportunities in the global renewable energy landscape.
A significant positive indicator for Greatech’s future is its outstanding order book, which stood at approximately RM755 million as of 21 May 2025. This robust order book provides excellent revenue visibility and is expected to sustain operations until the second half of 2026.
Summary and
Greatech Technology Berhad’s first quarter 2025 report showcases a company that is not only delivering strong performance compared to the previous year but also strategically positioning itself for future growth amidst a challenging global economic backdrop. The impressive year-on-year revenue and profit increases, coupled with an improved gross profit margin, highlight the company’s operational efficiency and market demand for its specialized automated equipment, particularly in the E-Mobility and Solar sectors.
While the sequential dip in revenue and profit reflects the natural project cycle, the underlying improvement in gross profit margin and the substantial increase in contract assets indicate a healthy pipeline and effective cost management. The company’s strategic acquisitions, such as Manz Slovakia s.r.o., and its focus on disciplined cost structures and strategic investments, reinforce its long-term growth ambitions.
The outstanding order book of RM755 million, providing revenue visibility until the second half of 2026, is a strong testament to Greatech’s market position and future prospects. Despite global uncertainties, Greatech’s resilience and strategic focus on high-growth sectors like renewable energy position it well to capitalize on emerging opportunities.
It is important to note that this analysis is for informational purposes only and does not constitute any form of investment advice or recommendation to buy or sell securities. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.
Key points from the report that stand out:
- Strong year-on-year growth in revenue and profit, driven by the E-Mobility and Solar sectors.
- Significant improvement in gross profit margin, reflecting enhanced operational efficiency.
- Healthy balance sheet with increasing total assets and equity.
- Substantial outstanding order book providing long-term revenue visibility.
- Proactive strategies to manage global economic uncertainties and geopolitical tensions.
From a professional standpoint, Greatech’s focus on operational efficiency and strategic investments, including the recent acquisition of Manz Slovakia, appears to be a prudent approach in the current volatile economic climate. The robust order book provides a strong foundation and visibility for future earnings, suggesting that the company is effectively translating market opportunities into tangible business. Their ability to maintain a strong gross profit margin even with sequential revenue fluctuations indicates underlying operational strength.
Given the ongoing global uncertainties and Greatech’s strategic moves, do you believe they can sustain this growth momentum and expand their market presence effectively? Share your thoughts in the comments section below!
