KUALA LUMPUR (Nov 3): Pentamaster Corp Bhd’s third quarter net profit rose 5.6% from a year earlier, helped by improved revenue contribution from its automated test equipment (ATE) and factory automation solutions (FAS) segments.
This was despite a wider loss from changes in fair value of foreign currency forward contracts arising from the continuous appreciation of the US dollar against the ringgit towards the end of the quarter, the semiconductor equipment vendor said in a filing with Bursa Malaysia.
The group said net profit for the third quarter ended Sept 30, 2022 (3QFY2022) rose to RM20.07 million or 2.82 sen per share, from RM19.01 million or 2.67 sen per share.
Quarterly revenue grew 11.07% to a new record of RM155.6 million from RM140.08 million in 3QFY2021.
Revenue in the ATE segment jumped by RM27.3 million to RM121 million from RM93.8 million, while revenue from the FAS segment registered a 14.7% increase to RM54.7 million from RM47.7 million.
For the first nine months of FY2022, Pentamaster’s net profit rose 12.55% to RM59.7 million from RM53.02 million a year earlier, as revenue climbed 17.38% to RM452.96 million from RM385.9 million.
Pentamaster said it is optimistic about achieving another record year of business growth in FY2022 after recording a double-digit revenue growth for the nine-month period.
It said all other industry segments of the group witnessed encouraging growth during the period, and that contributed positively to both the ATE and FAS segments, with the exception of the group’s electrooptical segment.
“Particularly, the group finds the automotive and the medical devices segments having strong positive momentum heading towards next year, barring any significant deterioration in the global economic situation and geopolitical risk.
“Given the volatility and having learnt from the past, the group will continue to necessitate its internal supply chain strategies, which include securing critical parts and long lead material items to smoothen its project delivery while converting its orders on hand as scheduled,” it said.
Pentamaster said the automotive segment will be the main strategic pillar that will pilot the performance and growth of the group organically in the mid to immediate term, underpinned by the rapid growth and intensifying trends in automotive electrification.
While there are some near-term expenditures associated with the group’s geographical expansion, the group said the incurrence of these operating costs is deemed necessary in order to expand its footprints outside of Malaysia to make further inroads into the automotive market, especially more so in the current deglobalisation trend.
“Overall, business sustainability continues to be one of the fundamental principles encapsulating the group’s commitment in achieving a solid business growth over the long run, and the group will stay focused on its strategic business roadmap that will progressively guide the group in delivering strong business performance going forward,” it added.
Shares in Pentamaster closed five sen or 1.31% lower at RM3.77 on Thursday (Nov 3), giving the group a market capitalisation of RM2.7 billion.
Source: TheEdge - 4 Nov 2022
