GEORGE TOWN: Tech firm Pentamaster Corp Bhd
has received orders worth approximately RM600mil to be delivered by the first half of 2024.
Group executive chairman C B Chuah told StarBiz that about 60% of the orders would be recorded in 2023.
“The remaining 40% will surface in the first half of 2024.
“We are still taking in orders that will be delivered within six months,” Chuah said.
“China and Europe are expected to absorb 60% of the orders.
“We expect the United States and Asean to take up the remaining 40%,” Chuah added.
The orders are for the group’s robotic production lines, automated material transfer system, as well as test and assembly machines to manufacture medical devices, industrial products and power modules and wafers used in electric vehicles (EVs).
“Due to higher production and material cost, our selling price has increased by around 5% to 10% from two years ago,” Chuah said. According to him, the group’s factory automation and power modules business now contributes about 60% of its revenue.Chuah said the group expects another financial record year.
“We are now doing our third plant in Batu Kawan, where we have invested RM200mil.
“The first phase will be ready by the end of 2023 and the second phase in 2024,” he added.
In 2023, the group will strengthen growth strategies in product diversification, geographical and segmental diversifications, according to Chuah.
“The group expects the growing revenue from the automotive segment to persist on the back of rising order fulfilment, primarily driven by the quickening pace of automotive electrification and the various automotive-related stimulus and policies towards decarbonisation that provide impetus to the EV market.
“The medical devices business, now dominating the factory automation segment, will drive revenue growth as the medical device manufacturing industry invests more in automation,” Chuah added.
According to Chuah, the group’s efforts in its geographical diversification approach entails establishing its presence in China, Japan, the United States and Singapore.
“We continue to record a positive financial performance on the back of its growing sales traction achieved from these regions that cover important critical markets for our business segments.
“We are mindful of the ‘China plus one’ strategy in which multinational firms are seen relocating their production outside of China, with India and Vietnam being the two primary locations brought up in attention,” he said.
According to a KPMG Advisory report, the medical device industry is set for steady growth, with global annual sales forecast to rise by over 5% a year and reach nearly US$800bil (RM3.6 trillion) by 2030.
“These projections reflect increasing demand for innovative new devices (like wearables) and services (like health data), as lifestyle diseases become more prevalent and economic development unlocks the potential in emerging markets, particularly China and India,” the report said.
