CROSBY Research – Pentamaster International (1665 HK/BUY): Steady 4Q23 revenue growth and GPM expansion; medical devices segment remains key growth driver in FY24

01 Mar 2024

Pentamaster’s 4Q23 revenue increased 14.5% YoY from MYR147.7m in 4Q22 to MYR169.0m. Revenue from Automated Test Equipment (ATE) segment edged down 0.5% YoY to MYR93.9m on slower growth momentum from automotive industry. Revenue from Factory Automation Solutions (FAS) segment surged 41.0% YoY to MYR75.1m on wider acceptance of assembly automation, especially from medical device segment. GPM expanded 1.4ppt YoY to 31.9% in 4Q23 on better economy of scale in FAS segment. Net profit was MYR33.9m in 4Q23, down 7.4% YoY. The company proposed a final DPS of HK$0.020, same as FY22. Payout ratio remained 20% in FY22, same as previous year.