KUALA LUMPUR: Genetec Technology Bhd climbed higher in early trade Tuesday after its net profit jumped six fold in the second quarter ended Sept 30.

       The counter jumped 68 sen, or 1.48% to RM47.38. It is currently the top gainer on Bursa Malaysia.

       At its current price, Genetec has a market capitalisation of about RM2.4bil.

       Genetec’s net profit surged by 517% to RM16.29mil in the second quarter ended Sept 30, 2021 from RM2.64mil a year ago.

       Its revenue increased by 53.2% to RM59.31mil from RM38.67mil.

       For the first half, its net profit surged to RM24.49mil compared with RM549,000 a year ago while revenue nearly doubled to RM99.59mil from RM51.10mil.

       Genetec has proposed to undertake a bonus issue of 661.56 million new shares on the basis of 12 bonus shares for every one share held.

       It said the entitlement dates will be determined later after obtaining all relevant approvals.

       Mercury Securities said Genetec’s higher earnings were mainly attributed to higher sales volume and improved operational efficiency.

       “Profit surged 517% to RM16.29mil in 2Q21 from RM2.64mil a year ago, whereas revenue increased 53.2% to RM59.31mil from RM38.67mil.

       “With the consensus EPS forecast of 91.0 sen, the stock is trading at a higher PE of 51.3 times compared to the technology industry PE of 43.1x,” it said.