Pentamaster posted a 4.3% year-on-year (y-o-y) growth in net profit to RM21.3mil for its first quarter ended March 31, underpinned by a 13.2% y-o-y jump in revenue to RM165.3mil.
PETALING JAYA: Pentamaster Corp Bhd
is hopeful of the continuous strength in the automotive and medical devices segment.
This will be driven by the intensifying trends in automotive electrification and the prevalent application of automation in medical manufacturing activities.
The integrated solutions provider entered 2023 with a sizeable order book on hand and is expecting majority of its orders to be fulfilled and delivered during the year, while remaining steadfast and focused on its core competencies for a sustainable growth in the near future.
Pentamaster posted a 4.3% year-on-year (y-o-y) growth in net profit to RM21.3mil for its first quarter ended March 31, underpinned by a 13.2% y-o-y climb in revenue to RM165.3mil.
Its revenue came mainly from its automated test equipment (ATE) and factory automation solutions (FAS) segments which contributed to the higher profit for the period.
The favorable changes in its product mix with better profit margins, as well as economies of scale achieved for projects undertaken also helped, it said in a filing with Bursa Malaysia yesterday .
“The FAS segment of the group has been gaining its traction over the last few years. The demand for the group’s proprietary i-ARMS (intelligent Automated Robotic Manufacturing system) has positively contributed towards the FAS segment driven mainly by the massive adoption of automation in the current post-lockdown environment in achieving efficiency and productivity,” Pentamaster added.
Meanwhile, compared with the preceding quarter ended Dec 31, 2022, net earnings slipped 6.5% from RM22.7mil, despite a 12% growth in revenue from RM147.7mil.
The drop in earnings was due to major salary adjustment and additional bonus payment made during the quarter as part of the group’s initiatives in retaining its employees.
“The company incurred a RM1.6mil research and development cost for its single-use medical devices in 1QFY2023,” it added.
Earnings per share for 1Q23 amounted to 2.99 sen.
Pentamaster remains committed to its strategy of product , segmental and geographical diversification.
It noted: “With the recent establishment of a wholly foreign-owned limited liability company in Germany as part of the group’s expansion initiatives to further broaden its geographical footprint outside of Malaysia, the company will continue to build its internal capabilities and expand its revenue stream in an ever evolving situation.”
While expecting 2023 to be just as challenging as 2022, it said heightened vigilance and resilience are required in the coming quarters as the company continues to seize business opportunities from the structural megatrends and emerging developments in the technological space.
