Graphjet receives new machinery at Malaysian factory

KUALA LUMPUR - Graphjet Technology (NASDAQ:GTI), a micro-cap company with a market value of $17.13 million, announced today the arrival of new machinery and equipment at its Malaysian factory, according to a company press release.

The delivery coincides with the arrival of a specialist from the supplier who will install and commission the equipment. Installation is expected to be completed within a week, followed by comprehensive testing to ensure operational efficiency and performance standards. The company’s next earnings report is scheduled for August 12, which could provide insights into the impact of this expansion.

The company stated that once operational, the new system will increase production capacity by approximately seven times. This expansion comes as Graphjet aims to meet growing demand for graphite and graphene, particularly in the semiconductor industry.

"With the surging demand for specialised chips, especially AI chips, many manufacturers have and will be expanding their advanced semiconductor manufacturing plants," said Chris Lai, CEO of Graphjet.

Founded in 2019, Graphjet Technology produces graphene and graphite using a patented process that recycles palm kernel shells, a waste product from palm seed oil production. The company completed its listing on the Nasdaq in 2023, though its shares have declined 87% year-to-date. InvestingPro analysis indicates the stock is currently overvalued, with concerning financial health metrics.

The graphite and graphene materials produced by Graphjet are used in various applications including semiconductors and electronic components. The company positions its production method as a sustainable alternative to traditional graphite sourcing, though its financial health score remains weak with a concerning current ratio of 0.03 and negative EBITDA of $17.41 million for the last twelve months.

In other recent news, Graphjet Technology announced it has filed its Form 10-K for the fiscal year ending September 30, 2024. The filing was supported by funding from the company’s new controlling shareholder, Aiden Lee, which facilitated the completion of a delayed annual audit. Additionally, Graphjet has received conditional approval from the Nasdaq Hearings Panel to maintain its listing, contingent upon meeting specific requirements by 2025. The company is required to comply with Nasdaq’s minimum bid price and periodic filing requirements, with updates on fundraising plans expected by September 2025.

Graphjet’s CEO, Chris Lai, has committed to filing overdue quarterly reports by mid-September 2025, including Forms 10-Q for several previous quarters. The company is also set to enhance its production capacity with new equipment arriving in Malaysia, expected to increase output sevenfold. Furthermore, Graphjet hosted a delegation from a Japanese trading firm to discuss the supply of sustainable graphite materials. The Japanese company, with significant operations globally, showed interest in Graphjet’s technology for producing synthetic graphite from renewable sources.

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