KUALA LUMPUR: Greatech Technology Bhd is poised to receive an additional RM300 million to RM400 million in new orders in the fourth quarter (Q4) of 2021, primarily from its key solar customer.
Public Investment Bank Bhd (PublicInvest) said Greatech would end the year strongly with a targeted RM550 million outstanding orderbook.
PublicInvest said the company aimed to double its nameplate capacity to 16 gigawatts (GW) in 2024 by further expanding its manufacturing capacity and footprint in Ohio and India.
"Being a long-standing and critical supplier of production line systems (PLS) to First Solar Inc, we believe Greatech will continue to secure strong order flow from the former in the financial year 2021-2023 (FY22-FY23), for both the new plants to be operational by the targeted timeline.
"Recall that they have both entered a master equipment purchase agreement effective until 2025, enabling Greatech to firmly entrench itself in First Solar's supply chain in the next few years to come," it said in a note today.
First Solar is an American manufacturer of solar panels.
Greatech's total current outstanding orderbook is RM369 million. The bulk of new orders are from the solar industry (80 per cent), while the remaining 20 per cent are from the electric vehicle battery segment.
PublicInvest said Greatech's current outstanding orderbook would provide an earnings visibility until the second half (2H) of FY22.
"Thus, we foresee the company's solar division to be the main earnings driver moving forward," it added.
PublicInvest has maintained its "Outperform" call on Greatech, with an unchanged target price of RM7.70.