GENETEC buoyed by order book

GENETEC Technology Bhd (0104) expects business to grow this year, helped by a RM150 million strong order book.

"This year alone, we have secured orders worth more than RM50 million," its managing director Chin Kem Weng said.

Genetec, a machine design specialist listed on Bursa Malaysia's ACE Market, said it was banking on more jobs in the current financial year to boost its finances.

Genetec is involved in the designing and building of customised factory automation equipment and integrated vision inspection system.
"I am confident Genetec has the ability to deliver a better financial performance this year as compared to the previous year," Chin told reporters after its annual general meeting in Bangi, Selangor, yesterday.

In the financial year ended March 31 2010, Genetec made a net profit of RM4.4 million, down from RM8.45 million previously. Revenue was RM52.5 million.

Chin said the hard disk drive industry, which contributes more than 80 per cent of Genetec's revenue, would continue to be its main market.

He added that the proposed acquisition of a 51 per cent stake in CLT Engineering Sdn Bhd will also drive growth.

CLT is involved in the fabrication of machine parts and toolings for equipment and replication of systems and equipment.

The acquisition, worth RM26.42 million, is expected to be completed by the end of the third quarter of this year.

Chin said that post-acquisition, Genetec will become the largest integrated, and high-precision, automation house in the country.

"CLT has an order book of RM93 million for the financial year ending December 31 2010, of which a significant portion will contribute positively to our results for the financial year ending March 31 2011."

In its first quarter ended June 30 2010, Genetec made a net profit of RM4 million on the back of a revenue of RM26.1 million.

By Azlan Abu Bakar