Pentamaster’s 3Q net profit up 26% on higher test equipment sales

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KUALA LUMPUR (Nov 7): While most semiconductor players have reported lower earnings for the third quarter of this year, Pentamaster Corp Bhd’s net profit grew 25.56% to RM21.48 million during the period, on the back of higher revenue from the automated test equipment (ATE) operating segment.

The ATE manufacturer saw its net profit grow to RM21.48 million or 4.52 sen per share in the third quarter ended Sept 30, 2019, from RM17.11 million or 3.6 sen per share a year ago.

Quarterly revenue was up 15.08% at RM124.63 million versus RM108.3 million previously, according to the group’s filing with the local stock exchange.

For the cumulative nine-month period, net profit increased 58.27% to RM60.59 million or 12.76 sen per share from RM38.28 million or 8.06 sen per share last year, while revenue grew 17.47% to RM364.13 million from RM309.98 million.

The higher earnings were attributed to the improvement in the group's operating efficiency.

On prospects, the group expects to end the current year commendably, despite the current challenging and volatile market situation.

The management anticipates positive business momentum mainly driven by the increasing complexity and wider adoption of smart sensors, the prevalence of 3D sensing technology and the group’s broadening exposure in the optical and optoelectronics segments.

Other positive factors include the expansion in the factory automation solutions (FAS) market and the group’s continuous diversification and expansion into new segments, particularly the automotive and medical industries.

Shares of Pentamaster closed one sen or 0.21% higher at RM4.75 today, valuing the group at RM2.26 billion. Over the past year, the counter has surged by some 116% from RM2.20.