AS the world shifts towards electrification, Malaysia has started to get the ball rolling. Malaysia has a strong input industry with many local companies playing a part in the global electric vehicle (EV) supply chain, such as semiconductors, battery assembly and copper wire manufacturing. With all of the supportive policy measures in line, the EV market in Malaysia is set to experience exponential growth.
Despite a slow start and still lagging behind its Asian peers, Malaysia is on the right track on its auto industry transformation and the Malaysian EV industry is well placed to develop.
Here are the top seven EV-related stocks in Malaysia:
Greatech Technology Bhd
Greatech is one of the leading providers of production equipment for lithium-ion battery modules and packs. It specialised in key technologies in battery production such as laser, adhesive dispensing and robotic handling, and tests. Its key technologies can be segregated into EV battery module assembly line and EV battery pack assembly line. The management is expecting to receive orderbook worth of RM500 million for FY22 with a total of RM300 million or 60% of its orderbook is filled by EV industry.
D&O Green Technologies Bhd
D&O Green Technologies develop semiconductor application technology, installation, electronic components, electrical equipment for lighting, electronic display screen, and lighting fittings for electric vehicles. We opine that D&O is in a good position to capture the bigger demand from the electric vehicle industry as it manufactures smart LED’s for this sector.
While most of D&O’s operation is running at full capacity at the moment, the company is also targeting to grow its capacity by 20% to 30% annually over the next five years in order to cater to the overwhelming LED demand as more new car models are being rolled out, especially in the EV segment.
Pestech International Bhd
With the rapidly expanding EV market, Pestech had also taken further steps into promoting green energy initiatives by deploying EV charging infrastructures in various locations. The EV charger is designed to be installed (both indoor and outdoor) at private houses, communal blocks, companies, reserved parking bays and other places where user authentication is not a requirement.
Malaysian Pacific Industries Bhd
Malaysian Pacific Industries has benefited from the EV growth with a pick-up in sensor shipment volume, driven by recovery in the global automotive and EV market in FY2021. With the growing adoption of silicon carbide in EV due to higher efficiency and prolonged driving ranges as well as lower cost for such vehicles, MPI is set to be the beneficiary given its unique position as the exclusive backend service provider for Cree.
Pentamaster Corp Bhd
Similar to MPI, Pentamaster will benefit from the rising penetration of SiC in power management applications for EVs by capturing opportunities in the EV battery market. The automated test equipment (ATE) provider expects higher demand for its assembly and test equipment due to rising orders from global automotive component companies in Europe, US and China. As of 2021, the automotive industry continued dominated the ATE segment, contributing 44.6% of its revenue. Moving forward, Pentamaster has set their eyes on its next global expansion towards Germany being a major market in the automotive industry.
Genetec Technology Bhd
Genetec serves automotive-electric vehicle and internal combustion engine, hard disk drive, electronics, pharmaceutical, semiconductor, and home appliance industries.
Genetec is expected to benefit from the growing EV space, as countries worldwide continue to ramp up production of such vehicles. In terms of the business segment, the order book from EV and battery space made up 93% of its RM205.6 million total secured orders since February 2021. It is noteworthy that the order book itself represented over two times its revenue for the financial year ended March 31, 2021. In order to fulfil the greater orders from its major customers, Genetec expanded its EV battery production capacity, as well as to commission new factories in Europe and North America in the second half of 2021.
KESM Industries Bhd
KESM is the world’s largest independent burn-in and test service company. The shift towards electric vehicles will create higher electronic content demand which will benefit the chip supplier company. Test and burn in are essential for cars and protecting digital information and growing needs for data analytics in connecting cars.
This article is contributed by the iFast Research team.
