8 November 2024

Amid the escalating geopolitical issues coupled with the uncertainty in global trades cause a noticeable impact on Pentamaster’s 3Q24 performance. As a result, the company experienced slower than expected growth in certain downstream customers and reported a lower quarterly revenue of MYR150.1m in 3Q24, representing a YoY decrease of 16.9%. This brought the total revenue for 9M24 amounted to MYR492.2m, reflecting a drop of 5.9%. GPM contracted by 1.1ppt to 28.7% in 9M24. The overall drop in GPM was mainly due to weak sales from Automated Test Equipment (ATE) leading to the lack of economies of scale. Adding to the GPM pressure was an increase in its OPEX on the back of an additional bonus payout in the earlier quarter and provision for slow-moving inventories. Consequently, 9M24 NP declined by 18.1% YoY to MYR88.8m.

CROSBY Research – Pentamaster International (1665 HK/ BUY): Medical devices’ growth momentum remained strong in 9M24