Wednesday, November 26, 2014

About Genetec

Earnings and revenue for the company have been at an uneven pace. Except for the FY2013 which posted a net loss of rm32 million, it had posted net profit from FY2010 to FY2015. However its first two quarters of FY2015 earnings had slowed down tremendously.

At rm0.175, it trades at 1.1 times book value of rm0.16 with a 12 month trailing PER of 20.1 times.

It posted a net loss of RM32 million for its financial year ended March 31, 2013 (FY13) after the group decided to exit from its US operations.

The discontinuation of its US subsidiaries contributed a net loss of RM24.2 million for FY13. This comprised of one-off write-off expenses on goodwill of RM4.3 million and bad debts and other assets written-off amounting to RM4.1 million.

In addition, the group has also written off RM13.3 million in relation to its investment in the US subsidiaries. Another RM1.1 million was incurred for legal and professional fees, and compensation costs in relation to the cessation of the US operation.

The group had secured new orders amounting to RM31.1 million of which RM25.2 million was from the hard disk drive (HDD) industry. The new orders boosted its order book for the current financial year ending March 31, 2014 (FY14) to RM69 million, which represents 56% of revenue recorded in FY13.

Of the RM69 million order book, 39% of the orders are from the automotive industry which is expected to provide the group with a more balanced portfolio other than its main staple in HDD. The orders are expected to contribute positively to group's earnings in the next few quarters.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.