Pantech Group Holdings Bhd’s share price is currently hovering at an all-time high, after touching 98 sen on Jan 30. It uptrend doesn’t appear to be stopping anytime soon.

Based on technical charts, the counter is expected to continue its upward movement after closing at 97 sen on Feb 14. The counter, riding on the positive trend, could challenge resistance targets of RM1.06 and RM1.13.

It is certainly a long way since it fell to a 52-week low of 71 sen in June last year. The recent positive run is seen despite it posting a weaker results.

9MFY24 core net profit of RM69.8 million fell 15.2% year-on-year, came in below consensus’ expectations at 68% of consensus’ full-year forecasts. This was on the back of lower 9MFY24 revenue and PBT slipped 14.8% YoY and 19.2% YoY respectively.

Its 3QFY24 revenue declined 26.2% YoY dragged by slower sales demand from local oil and gas projects for the trading segment while quarterly PBT dropped 41.8% YoY. 

The company also experienced lower average selling prices and lower demand for stainless steel products for the manufacturing division. Tenders for major oil and gas projects such as the Pengerang Integrated Petroleum Complex (PIPC) have been delayed. As such, 4QFY24 results are expected to be flattish or only improve slightly due to less major O&G projects locally.

Nevertheless, Investors are probably positive as the company should post better performance in FY25 as the tenders for major projects such as PIPC are likely to start in the middle of the year.

In addition, Pantech is aiming to move up the value chain from basic to specialty chemical under the National Industrial Master Plan 2030. It is certainly in a good position, being one of the largest one-stop providers for pipes, valves and fittings (PVF) in Malaysia, providing solutions for gas and fluid transmission.

The O&G sector is feeling increasing pressure to decarbonise their operations, increasing the demand for carbon capture, utilisation and storage, potentially benefitting Pantech.

In addition, the potential of hydrogen as an energy carrier that can store, move and deliver energy will increase the demand for the production, delivery, and end-use of the gas in the future.

In particular, the delivery of hydrogen may require the installation of new pipeline beside the existing transmission pipeline for natural gas.

On another positive note is Pantech being an attractive dividend play, potentially offering 6.7% dividend yield for FY24-FY26. Investors are unlikely to go wrong with this counter over the longer term once all pieces come together for the company.