Pentamaster

[winston]

not vested

Back on growth path

1H20 core net profit in line at 42%/39% of our/Bloomberg consensus full-year forecasts; we expect a stronger 2H20 driven by higher testers sales volume.

Expect stronger recovery from telecommunications and automotive in 2H20, driven by widening portfolio exposure in 3D-sensing and PMIC supply chain.

Recent pullback in share price offers good re-entry opportunity, in our view.

Upgrade Pentamaster from Hold to Add with an unchanged RM4.80 TP.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... E8F0A8E31D

[winston]

not vested

Pentamaster Corporation (PENT MK)
On The Mend; Sowing Seeds For Structural Growth

Pentamaster has resumed cross-border travelling for its offsite project installation since July.

While 2H20 sales might not be as robust yoy with the telecommunications segment to see meaningful growth only in 2021, the automobile segment is gaining traction with additional growth from the new medical segment.

Pentamaster is undergoing a high-growth phase anchored by its highly-customised test equipment and solutions for next-generation smartphones and EV/autonomous driving.

Maintain BUY on weakness. Raise target price to RM5.80.

Source: UOBKH

https://research.uobkayhian.com/content ... f3b361dfba

[winston]

not vested

Pentamaster Corporation (PENT MK)
9M20: Below Expectations; Look Beyond The Short-term Lull

The electro-optical segment (previously known as the telecommunications segment, which requires more project site installation and billing) continues to be constrained by travel restrictions.

That said, this segment will rebound again alongside the mass adoption for new technologies in 2021.

The group is undergoing a high-growth phase.

It is anchored by:
a) robust demand for its highly-customised test equipment; and
b) solutions for new innovative technologies in next-generation smartphones and
EV/autonomous driving.

Maintain BUY with target price of RM5.70.

Source: UOBKH

https://research.uobkayhian.com/content ... 2ee2267796

[winston]

not vested

Pentamaster Corp Bhd
Staying on the path to recovery

9M20 results in line at 67%/65% of our/Bloomberg consensus estimates.

Core EPS in 3Q20 grew by 23% qoq on the back of higher FAS sales in spite of ongoing delays in ATE shipment delivery due to travel restrictions.

We expect earnings to continue to recover in 4Q20, driven by robust demand for iARMS and PMICs going into EVs.

Reiterate Add; TP lifted to RM5.90.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 7CE745ECBA

[winston]

not vested

Pentamaster Corporation (PENT MK)
Staging A Meaningful Rebound In 2021

Pentamaster is staging a strong rebound in 2021, particularly from the electrooptical segment which has been constrained by travel restrictions.

Meanwhile, the automobile and the medical segments are gaining traction with its venture into state of-the-art technology.

The group is undergoing a high-growth phase, anchored by robust demand for its highly customised test solutions for next-generation smartphones and EV/autonomous driving.

Maintain BUY and target price of RM5.70.

Source: UOBKH

https://research.uobkayhian.com/content ... 33f7fc9c70

[winston]

not vested

Looking beyond Covid-19 impact in FY20F

We see a stronger sales recovery in FY21F driven by 3D-magnetometer sensors and higher IGBT solutions demand amid near-term challenges.

We like the group’s strategy of diversifying into auto and medical, which offer higher margins and which expand its exposure beyond telecommunications.

We cut FY20-22F EPS by 5-9%. Reiterate Add with a lower RM5.60 TP.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 7FD43CBEF6

[winston]

not vested

Pentamaster's 1Q profit slides 4% despite stronger revenue as costs climb

by Justin Lim

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... osts-climb

[winston]

not vested

Pentamaster Corporation (PENT MK)
Temporary Glitches Overly Priced In; On Track For A Strong Recovery In 2021

While Pentamaster has not been spared from the sector-wide margin pressure, the strong revenue momentum is cushioning the impact.

Meanwhile, structural growth from the adoption of next-generation technologies is accelerating.

The group is envisaging overtaking its peak performance that was seen in 2019.

With the stock trading at a 2- year forward PE of 27.6x, against a 2-year net profit CAGR of 31%, we believe the negatives have been overly priced in.

Maintain BUY with target price of RM6.90.

Source: UOBKH

https://research.uobkayhian.com/content ... 6b9cb28f35

[winston]

not vested

Pentamaster rides on solid demand

By GANESHWARAN KANA

The cash-rich Penang-based company has already begun its financial year 2021 with a 15% jump in sales in the first quarter (Q1), although it was not spared from the sector-wide margin pressure.

Rrder book worth over RM230mil.

Net profit dropped 14.6% y-o-y to RM70.9mil, against another 14.6% fall in revenue to RM418.8mil.

Almost RM430mil cash.

Source: The Star

https://www.thestar.com.my/business/bus ... lid-demand

[winston]

not vested

Pentamaster posts highest-ever quarterly revenue in Q2

KUALA LUMPUR: Pentamaster Corp Bhd, an automated test equipment maker, said quarterly sales surged to a record in three-month ended June 30.

However, lower margin due to price adjustment for certain segments and projects. as well rising costs, capped its profit growth.

Pentamaster posted a net profit of RM17.9mil compared with RM17mil made a year ago.

Revenue jumped 27% to RM130.6mil, the company said in a filing today.

The group, however, expects the demand level in its major markets in particular the electrooptical and automotive industry to improve.

"With the prevalence of optoelectronics and 3D sensing technology, further compounded by the pandemic situation, the Group’s core products and solutions that cater for a wide range of smart sensors will become increasingly important to its customers," Pentamaster said.

"Additionally, demand from the automotive market is expected to continue to be strong for the Group following the increasing wave of development of automotive electrification and various technology advancements changing the automotive landscape," it added.
The group has predicted another record year in 2021.

Source: The Star

https://www.thestar.com.my/business/bus ... enue-in-q2