13 May 2024

Pentamaster’s 1Q24 revenue increased 3.3% YoY from MYR165.3m in 1Q23 to MYR170.7m. Automated Test Equipment (ATE) segment revenue decreased 34.5% YoY to MYR72.8m due to weak demand within the automotive end market. Factory Automation Solutions (FAS) segment revenue surged 81.0% YoY to MYR97.9m on stellar growth of medical device segment. In 1Q24, FAS segment revenue surpassed ATE segment for the first time in the company’s history.  GPM widened 0.5ppt YoY to 29.2% in 1Q24. If an additional bonus payout to staffs was excluded, GPM will be at 31.1% in 1Q24, compared to that of 30.9% in 1Q23. Net profit reported MYR30.2m in 1Q24, declined 11.9% YoY. If we excluded the unrealized forex loss of MYR3.6m in 1Q24, the adjusted net profit would be MYR33.8m, slightly declined 1.1% YoY.

CROSBY Research – Pentamaster (1665 HK/BUY): 1Q24 sales dragged by weak automotive segment; medical devices segment remains key growth driver