Greatech Technology tumbles nearly 9% after being named among tech’s biggest losers as Trump’s new tariffs bite

Greatech Technology Bhd tumbled in the wake of fresh US tariff measures and a reassessment of the technology sector, even as Malaysia’s semiconductor segment enjoyed some exemptions. The stock’s slide reflected growing concerns about how broader electrical and electronics activity could be impacted when tariffs intensify, particularly for players with heavy exposure to the United States. The day’s price action underscored the market’s sensitivity to policy shifts that shape global demand, supply chains, and capital expenditure plans across tech-enabled industries.

Market Context and Company Snapshot

Greatech Technology Bhd, a notable player in automated assembly systems and customised automation solutions, experienced a sharp turn in investor sentiment as it concluded a trading session with a decline of nearly 9 percent. This marked a continuation of a three-day downward trajectory that followed the United States’ decision to implement reciprocal tariffs. While the immediate focus centered on the stock’s price movement, the broader narrative involved how tariff policy would ripple through Malaysia’s technology ecosystem, particularly among firms in the electrical and electronics (E&E) segment.

The company’s business spans several high-value industries, including automotive and solar, where its capabilities cover the development and design of automated assembly systems and bespoke automation solutions. The market’s concern was not merely about current revenue but the potential shift in demand patterns resulting from tariff-induced cost changes and procurement decisions by customers in tariff-affected markets. The situation was complicated by the fact that a portion of Greatech’s revenue is derived from the United States, a factor that heightened sensitivity to tariff announcements.

Analysts highlighted that Greatech has substantial exposure to the US market, with Public Investment Bank and CIMB Securities noting that a large share of the company’s revenue stems from American customers. According to CIMB Securities, roughly 76%–77% of the revenue for Greatech and for Genetec Technology Bhd (another Kuala Lumpur-listed automation company) comes from the United States, a concentration that amplifies the potential impact of tariff policy changes on earnings visibility and booking momentum. This exposure raised questions about how much of any tariff-driven price movement would translate into reduced demand versus how much would be absorbed by customers, logistics arrangements, or supplier pass-throughs.

The market activity also reflected broader concerns about the sustainability of earnings growth in the technology sector, where tariff risk can distort short-term price discovery while longer-term demand trends remain favorable in some segments. Greatech’s intraday low was RM1.39, representing a fall of as much as 17 sen or more than 10 percent from the opening level. By the close, the stock settled at RM1.42, equating to a market capitalization near RM3.57 billion. The price action underscored a pattern of volatility that has become increasingly common in tech-related equities during periods of tariff scrutiny and policy signaling.

From a year-to-date perspective, Greatech’s stock had already endured a material pullback, having shed more than 38 percent of its value. This backdrop set a challenging stage for the company as it navigated the tariff environment, investor expectations, and the evolving competitive landscape across Southeast Asia and beyond. The broader macro backdrop included a global policy environment in which tariff announcements could trigger repricing of risk across technology equities, with investors closely watching how companies would adapt their product mix, market focus, and cost structures to mitigate tariff-related headwinds.

In terms of analyst sentiment, a mix of optimism and caution characterized the sector. Philip Capital subsequently revised its near-term price targets downward to reflect the enduring weakness in the technology cycle and the potential for ongoing tariff-related volatility. Despite the downdraft, multiple brokerages maintained positive longer-term calls on Greatech, supported by the company’s strategic positioning in automation and its exposure to high-growth end markets such as automotive manufacturing and solar deployment. The consensus among analysts included an ongoing evaluation of multiples, earnings trajectories, and the ability of these companies to manage pricing, margins, and capex cycles in a tariff-impacted environment.

Sector Impact and Tariff Transmission

The Malaysian E&E sector faced an uncertain path in the wake of US tariff policy, though Malaysia’s semiconductor segment was exempted from some reciprocal duties. The exemption for semiconductors did not automatically shield all E&E players, particularly those involved in automated test equipment (ATE) and contract manufacturing services (EMS), where exposure to US demand dynamics remained pronounced. This nuance created a bifurcated outlook for the sector: some niches within E&E could benefit from continued global demand, while others could encounter cost pressures and slower order intake as customers recalibrate investment plans.

Greatech and Genetec Technology, both anchored in automation, were singled out as notable examples of how U.S. tariff action could reconfigure market expectations. CIMB Securities noted that ATE players and EMS providers with significant exposure to the US market would be particularly sensitive to tariff changes. Greatech’s product portfolio—spanning automated assembly lines, solar-related automation, and automotive-focused capabilities—placed it squarely in the crosshairs of policy-driven demand shifts. ATE, as a core enabling technology for high-volume manufacturing, typically carries a high elasticity of demand to capital expenditure cycles. If tariffs disrupt project timing or raise the effective cost of automation solutions, end-market customers—especially in the US—could delay or alter procurement plans.

CIMB Securities referenced channel checks with Genetec to gauge the tariff pass-through dynamics. The takeaway from those checks suggested that U.S.-based customers would absorb part of the tariff impact, thereby attenuating direct, immediate pressure on Genetec’s operating results. However, this dynamic did not automatically translate into a uniform outcome across the sector. The degree to which tariff-related costs would be passed through or absorbed depended on several factors, including customer bargaining power, product mix, contract terms, and the duration of the tariff regime.

For EMS players, the exposure patterns vary. VS Industry Bhd (VS) and SKP Resources Bhd (SKPRES) were cited as examples of EMS players with meaningful US revenue shares—roughly 50% and 20%, respectively. The implication is that a sizable portion of their revenue is contingent on American demand, which could be influenced by tariff-induced price sensitivity. Yet, the sector also offered potential resilience through structural advantages in cost efficiency and regional diversification, which might support performance even as tariff winds shift. In some scenarios, Malaysian EMS players could outperform regional peers in markets that remain subject to higher tariff regimes, such as Vietnam, due to comparative cost structures, supplier ecosystems, and the nature of local demand.

Philip Capital’s stance on the technology sector reflected a broader caution about sector-specific tariff risks, ongoing policy uncertainty, and the potential adverse impact on global capex spending by multinational corporations. The note underscored a concern that ongoing tariff risk could prolong the period of muted earnings multiples across technology stocks, including those in the auto and solar segments where Greatech operates. The brokerage downgraded the sector from overweight to neutral, a reflection of the combination of tariff risk, slowing order momentum, and the potential for valution compression to persist while investors reassessed exposure to higher-risk assets.

Looking ahead, the sector’s trajectory would likely depend on several variables: the duration and scope of tariff regimes, the pace at which customers adapt supply chains and procurement strategies, and the ability of automation and EMS players to demonstrate cost-effectiveness and value creation in a higher-cost environment. If tariffs persist or expand to additional categories, demand timing for capex-intensive automation solutions could shift toward later quarters or even different regions where tariff exposure is more favorable. Conversely, if tariff relief or negotiated exemptions materialize, investor sentiment could stabilize, with potential upside as earnings visibility improves and markets reprice quality franchises with strong customer ecosystems and long-term demand drivers.

Within this broader context, CIMB Securities highlighted that channel dynamics could reshape how tariff impacts are reflected in financials. Even when direct sales to the US were affected, a portion of costs could be mitigated by pass-through mechanisms, price adjustments, or contract renegotiations. The net effect would depend on how quickly customers adjust their supplier portfolios and whether alternative suppliers could absorb demand without compromising service levels or quality.

Analyst Coverage, Targets, and Valuation Dynamics

Analysts provided a mix of reassessments and reaffirmations in light of tariff developments and sector-wide volatility. CIMB Securities, in particular, issued observations that reflected a cautious but constructive stance toward automation playmakers with US exposure. Two key themes emerged: (1) the tariff environment could be absorbed in part by US-based customers, reducing immediate, direct impact on certain peers like Genetec, and (2) longer-term earnings power would hinge on the ability of companies to manage costs, sustain demand, and navigate the capital expenditure choices of global customers.

As part of the evaluation, CIMB Securities adjusted its price target for Greatech downward. The target price moved to RM1.80 from RM2.45, with the analysts also revising their earnings forecast and price-to-earnings multiple to reflect the prolonged market weakness seen in the technology sector. Despite the downward revision, CIMB Securities maintained a positive stance on the stock, issuing a buy call. The logic centered on the expectation that Greatech’s fundamentals—its technology leadership in automation, diversification across industries such as automotive and solar, and its exposure to sizable US demand—would ultimately support a rebound in earnings as tariff uncertainties resolve or as the company adapts to new market realities.

Publicly available consensus after the tariff announcements painted a varied but generally constructive picture of the stock’s longer-term potential. Greatech had a mix of buy and hold recommendations across market participants, underscoring a standard distribution of views in a sector characterized by cyclical volatility and policy-driven swings. The aggregated view suggested a favorable long-term upside potential, with a 12-month target price averaging around RM2.15, implying an upside of more than 24 percent from prevailing levels, assuming a normalization of the macro environment and a stabilization of tariff-related headwinds.

The market’s consensus around Greatech’s valuation metrics reflected a balance between the company’s strategic positioning and the near-term headwinds from tariffs. The average target price indicated a potential recovery trajectory, while the spread of buy and hold calls signaled that investors were balancing optimism about the company’s competitive moat and end-market demand against the risk of policy uncertainty and cyclical volatility. The situation highlighted a broader theme in technology equities: the need to assess not only current earnings but also mid-to-long-term revenue mix, geographic diversification, and the resilience of customers’ capex cycles in the face of policy shifts.

In a parallel view, Philip Capital’s downgrade of the technology sector—driven by ongoing tariff uncertainties and the potential for continued earnings multiple compression—introduced a note of caution for investors seeking near-term catalysts. The brokerage’s assessment suggested that any rebound in sector-wide sentiment would likely require a decisive easing of tariff risk, stronger visibility on order books, and clearer indications of improving demand fundamentals across key sub-sectors such as ATE and EMS.

The overall analyst landscape for Greatech painted a nuanced picture: near-term pressures from tariff policy and market volatility; medium- to long-term upside potential anchored in competitive advantage and diversified end-markets; and a valuation framework that was adjusting to the evolving risk-reward dynamics of technology equities in a tariff-sensitive global economy. Investors who weighed the mix of US exposure, cost-management capabilities, contract backlogs, and regional demand patterns could reasonably expect a range of outcomes depending on policy trajectories and the pace at which the company could scale its automation offerings across industries beyond those most exposed to tariff risk.

Exposure, Revenue Mix, and Customer Dynamics

Greatech’s revenue backbone included significant exposure to the United States, a factor that has historically supported robust growth but can also amplify sensitivity to tariff-driven policy shifts. The U.S. market’s prominence within Greatech’s revenue mix underscores why tariff developments have such a pronounced impact on investor sentiment and price action. The company’s business lines—ranging from automated assembly solutions to solar and automotive automation—position it to benefit from secular trends in automated manufacturing. Yet, these same segments face potential cost pressures and order timing variability rooted in policy changes that affect cross-border trade, supply chains, and customer investment calendars.

The presence of substantial U.S. revenue also intersected with the broader Chinese and ASEAN manufacturing ecosystems. In this environment, American customers may adjust procurement strategies in response to tariff changes, which can influence the pace and scale of automation investments in the near term. On the other hand, the enduring demand for efficiency improvements, quality control, and productivity gains continues to support a long-term growth trajectory for automation players. The dual nature of this dynamic—short-term volatility and long-term opportunity—became a central theme in discussions around Greatech’s outlook.

The role of the EMS players in the Malaysian market adds another layer to the discussion. VS Industry and SKP Resources, both significant EMS players, contribute to the region’s manufacturing value chain with varying degrees of U.S. exposure. VS Industry’s revenue mix shows a substantial U.S. share, which makes it sensitive to tariff flips and demand re-prioritization. SKP Resources, with a somewhat smaller U.S. share, still faces tariff-related considerations in shaping its order intake and capacity utilization. The sector’s diversity in exposure underscores that tariff policy has a differentiated impact across the supply chain, with some players potentially benefiting from elevated demand in regions with tariff diversities or from customers seeking to diversify suppliers to mitigate single-country risk.

The potential acceleration of US-based demand absorption, as suggested by channel checks, would only partially shield EMS players like Genetec from tariff-related cost pressures. If customers negotiate price adjustments or extend supplier relationships for automated systems, the near-term earnings impact could be moderated. However, a slower-than-expected recovery in order momentum remains a clear risk, particularly for companies with sizable capital expenditure requirements tied to automation projects.

One critical consideration for investors involves the sustainability of cross-border revenue streams in a tariff-constrained environment. If tariff policy persists or expands, it may spur shifts in regional supply chains, driving customers to seek regional automation providers that can deliver faster lead times, stronger local service capabilities, and more favorable total cost of ownership. In such a context, Malaysian automation and EMS players could pursue strategies to diversify revenue sources beyond the United States, expanding footprints in Europe, Southeast Asia, and other high-growth manufacturing hubs where tariff exposure is comparatively lower or more manageable.

Competitive Landscape and Peer Dynamics

The competitive landscape for Greatech sits within a broader ecosystem of automation, EMS, and semiconductor-adjacent players. The sector’s dynamics in Malaysia are shaped by a mix of domestic demand, regional manufacturing realignments, and global supply chain considerations. Greatech’s peers—such as Genetec Technology and other automation specialists—serve as benchmarks for evaluating market positioning, technology differentiation, and customer relationships. The interplay between these companies informs how tariff-driven price discovery translates into earnings potential and strategic moves.

Within this landscape, VS Industry and SKP Resources stand out as notable EMS peers with meaningful exposure to the U.S. market. Their revenue profiles—where U.S. sales constitute approximately half of VS Industry’s revenue and around a fifth of SKP Resources’ revenue—highlight the degree to which tariff developments may influence topline performance across the supply chain. The balance between U.S.-focused demand and diversification into other regions will likely influence both top-line growth and operating leverage in the coming quarters.

Genetec Technology, as a close market peer with similar exposure patterns to the U.S., offers a relevant comparison framework for assessing how tariff developments may be absorbed or transmitted through customer relationships and contract terms. The degree to which U.S.-based customers absorb tariff-related costs versus passing them through to suppliers will influence the degree of variance in performance among automation and EMS players. The teleology here suggests that a mix of pricing power, service differentiation, and manufacturing efficiency will determine which companies emerge with stronger margins amid tariff volatility.

From a macro perspective, the tariff environment adds a layer of complexity for investors evaluating the technology sector’s cyclicality, order visibility, and price resilience. The risk-reward calculus becomes a function of not only the scale of U.S. exposure but also the ability to diversify revenue sources and to maintain strong relationships with high-value customers who can sustain investment in automation despite tariff fluctuations. The sector’s valuation baselines will likely reflect a premium for exposure to automation and manufacturing modernization in markets with structural demand, even as policy risk serves as a counterweight to near-term multiples.

Policy developments will continue to be a central driver of stock performance for Greatech and its peers. Investors will monitor the pace at which tariff policies evolve, potential exemptions or expansions, and any shifts in the global capex cycle that could either tighten or loosen the demand for automation solutions. The interplay between business fundamentals and policy signals will shape sentiment and valuation as the sector navigates this high-stakes regulatory landscape.

Strategic Considerations and Corporate Response

Greatech’s strategic posture in response to tariff developments and sector headwinds involves balancing near-term pressure with long-term growth opportunities. The company’s leadership has indicated a cautious approach to public commentary amid an evolving policy backdrop. This stance reflects the complexity of interpreting tariff announcements and projecting their direct impact on a company with a diverse product focus and a sizable US customer base.

Diversification remains a central strategic objective. Expanding share of revenue from regions beyond the United States could help reduce vulnerability to tariff-induced volatility. The solar and automotive automation segments offer growth avenues that align with global energy transition trends and advanced manufacturing needs. By strengthening capabilities in these areas, Greatech could mitigate some of the tariff-related risks associated with any one geography while leveraging its core expertise in automated assembly systems to win projects in new markets.

Product and service differentiation is another key lever. Greatech’s ability to deliver customised automation solutions and turnkey systems positions it to capture opportunities in industries requiring high levels of integration and precision. The company’s engineering talent, combined with its track record in automating complex manufacturing processes, can create defensible moats around its offerings. By continuing to invest in R&D and expanding collaboration with customers on co-creation and deployment, Greatech could deepen its value proposition and strengthen customer retention, helping to cushion earnings from external shocks.

Operational efficiency and cost optimization will be important in sustaining margins, particularly if tariff costs begin to ripple through the supply chain. The company can pursue hedging strategies, supplier diversification, and proactive pricing discussions to preserve profitability. Additionally, optimizing capital expenditure cycles—by aligning project sequencing with customers’ procurement calendars and ensuring robust project management—could help maintain positive order flow even in a volatile policy environment.

Strategic partnerships and ecosystem play are potential areas of focus. Strengthening relationships with key customers and integrators in the automation space could yield more predictable backlog and better pricing terms. Collaborations with suppliers for components used in automated systems could further stabilize lead times and costs, supporting a smoother revenue realization pathway in the face of tariff uncertainties.

From a governance and investor-relations perspective, transparent communication around tariff exposure, risk mitigation measures, and business continuity planning will be critical. Providing investors with clear visibility into revenue mix, major customers, and project backlogs can help manage expectations and reduce the risk of abrupt price swings caused by policy changes. The company’s communication strategy should emphasize resilience, adaptability, and a disciplined approach to capital allocation.

Longer-term growth will also hinge on talent retention and the ability to attract engineers and project managers who can deliver high-value automation solutions. In a high-competition market for technical talent, maintaining a pipeline of skilled professionals is essential to sustaining the pace of innovation and project delivery that underpins customer satisfaction and repeat business.

Forward-Looking Market Sentiment and Risks

The market’s sentiment toward Greatech and the broader technology sector remained sensitive to policy developments, macroeconomic shifts, and sector-specific demand drivers. Tariff policy, in particular, introduced a level of uncertainty that could refract through earnings expectations, order visibility, and investment decisions across the global manufacturing landscape. While the long-term fundamentals for automation and EMS players are compelling—the ongoing push for productivity, efficiency, and global manufacturing modernization—the near-term could be characterized by volatility as investors reassess risk premia, discount rates, and growth trajectories.

Risks that investors monitor include the potential for tariff expansions or new exemptions, which could alter the cost structure and price competitiveness of automation suppliers. A protracted tariff environment could delay or reprice capital expenditure cycles by multinational corporations, which would affect order intake and revenue growth for players like Greatech. Conversely, any signs of tariff relief, policy stabilization, or accelerated demand for automation projects driven by a desire to reduce supply chain fragility could serve as catalysts for a rebound in stock performance.

Market participants will also weigh the sector’s earnings resilience, given that the automation and EMS businesses tend to be capital-intensive with project-driven revenue streams. While revenue visibility can be strong in the backlogs of established customers, any material deterioration in end-market confidence or customer liquidity could hamper project pacing. As a result, investors may require more robust clarity around backlog health, project mix, and the timing of major contracts to justify a more bullish stance on valuations.

From a regional perspective, the global tariff landscape could redirect investment flows toward markets perceived to offer more favorable regulatory environments and cost advantages. Countries with competitive labor dynamics, strong manufacturing ecosystems, and supportive policy regimes could attract new automation-related investments, potentially offsetting some of the US-driven headwinds. For Malaysian players like Greatech and peers in the EMS space, diversification into such markets could be an essential component of risk mitigation and growth strategy.

Investor education around the value proposition of automation and its role in productivity gains remains important. In times of tariff-induced volatility, communicating a clear narrative about how automated systems reduce per-unit costs, improve quality, and shorten cycle times can help justify investments even when tariffs add complexity to the procurement process. Emphasizing the total cost of ownership, lifecycle benefits, and the strategic importance of uptime and reliability can support a sustainable demand outlook for high-value automation solutions.

Conclusion

Greatech Technology Bhd’s recent trading performance underscored how tariff developments can shape stock prices in the technology sector, especially for firms with considerable exposure to the United States. The stock’s near-9 percent fall on the updated tariff landscape highlighted investor sensitivity to policy shifts, while a three-day downward trend indicated a broader reassessment of earnings potential in the near term. The company’s business model—anchored in automated assembly, solar, and automotive automation—positions it to benefit from ongoing structural demand for efficiency and modernization, but the degree of near-term upside is tempered by policy risk and the potential for order delays in tariff-affected markets.

Analysts’ views remained mixed but constructive about Greatech’s long-term prospects. While CIMB Securities adjusted its price target downward to reflect tariff-related headwinds, it still signaled a buy, reflecting confidence in the company’s competitive position and growth opportunities within its core segments. Philip Capital’s cautious stance on the broader technology sector highlighted the ongoing uncertainty and potential for multiple compression as tariff dynamics evolve. Nonetheless, the consensus around a multi-quarter horizon suggested potential upside driven by revenue diversification, project momentum in high-growth segments, and prudent cost management.

On the sector level, Malaysia’s E&E ecosystem faced a nuanced trajectory. Semiconductors benefited from some exemptions, yet other areas—notably ATE and EMS—remained closely tied to tariff policy, influencing demand patterns and profitability. The exposure to the U.S. market across Greatech and peers underscored the importance of strategic diversification into other regions and sectors to mitigate policy risk. For investors, the key to unlocking value lies in the ability of companies to demonstrate resilience in earnings, maintain competitive differentiation through technology leadership, and execute on diversification strategies that reduce reliance on a single market.

As the tariff landscape continues to unfold, Greatech’s path forward will depend on how effectively the company can navigate policy changes, broaden its revenue base, and sustain its competitive edge in automation. The coming quarters will test whether the anticipated absorption of tariff costs by customers and the potential offsetting effects of pricing strategies materialize in a way that supports a rebound in orders, margins, and investor confidence. In the meantime, market participants will continue to monitor tariff developments, demand dynamics, and the sector’s broader catalysts to assess the sustainability of the current earnings trajectory and the prospects for renewed growth in a technology-driven manufacturing economy.