CROSBY Research – Pentamaster International (1665 HK/BUY): Order book surged in 4Q22 driven by strong automotive and medical devices demand

02 Mar 2023

Pentamaster’s 4Q22 revenue increased 20.6% YoY from MYR122.4m in 4Q21 to MYR147.7m. Automated Test Equipment (ATE) segment revenue increased 9.5% YoY to MYR94.4m on strong demand from automotive business. Factory Automation Solutions (FAS) segment revenue surged 47.3% YoY to MYR53.2m on strong demand for process and assembly automation from medical device segment. GPM narrowed 1.5ppt YoY to 30.6% in 4Q22 on supply chain constraints and inflationary cost pressures. Net profit was MYR36.6m in 4Q22, up 20.5% YoY.