This article first appeared in The Edge Financial Daily on May 16, 2019

KUALA LUMPUR: Pentamaster Corp Bhd’s first-quarter (1Q) net profit jumped 170.7% thanks to greater operating efficiency that led to higher profit margins and net interest income.

In a bourse filing yesterday, the group said net profit for the quarter ended March 31, 2019 rose to RM19.56 million, from RM7.23 million a year ago.

Quarterly revenue increased 19.5% to RM118.76 million, from RM99.38 million previously, due to higher sales from its automated equipment operating segment.

Pentamaster said it remains optimistic about the full year, as there is continued strong demand from its customers, given the size of outstanding orders it maintains.

“In view of the continuous supply of its flagship test solutions, the broadening exposure of the group to 3D sensing technology in VCSEL (vertical cavity surface emitting laser) and its efforts in diversifying its expertise across other business segments and customers, the directors maintain a positive outlook for the group’s performance in 2019,” said the group.

It added that the automated equipment and manufacturing solution segments should see growth on account of the adoption of 5G technology in the telecommunications and automotive sectors, as well as the prevalence of Industry 4.0 revolution in the consumer and industrial product segment.

Pentamaster’s share price closed 19 sen or 4.74% higher at RM4.20 yesterday, with a market capitalisation of RM1.33 billion.