Pentamaster’s order book grew 2.5x YoY, reaching an all-time high of RM500mil as of May 2022. 70% of the order book secured are by the automated test equipment (ATE) division, while the remaining 30% are from factory automated solutions (FAS).
By industry segmentation, 40% of the order book are contributed by the automotive division. Barring any unforeseen circumstances, the group expects the order book to be recognised in 6 to 9 months’ time, as communicated to its customers.
Of the RM500mil order book, we learned that 60% are derived from new customers’ orders, which the group managed to negotiate for higher ASPs of up to 12%. We have factored in the higher ASP into our FY23F–24F revenue assumptions. The group’s rising automotive segment will continue to drive the group’s growth, which management guided that its top 5 customers are in this division.
Together, they contributed 58% of the group’s 1QFY22 total revenue. Meanwhile, more than 40% of Pentamaster’s 1QFY22 revenue are derived from China. However, while local regulators remain committed to the zero-Covid policy, the group view the impact as mostly mitigated by its diversified customer base in China as the lockdown is largely limited to Shanghai.
To note, the group also has customers in Suzhou, Shenzhen, Beijing and Chengdu
WASHINGTON DC: Malaysia is expected to garner RM14.62 billion in new investments from the United States (US) following the Trade and Investment Mission (TIM) led by Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali.
Azmin said many US-based companies had expressed their commitments to expand their operations and footprint in Malaysia during his 10-day US TIM which began on May 8.
"We are going to make some major announcements in the next few days in terms of the total new investments that have been committed by these companies," he told Bernama and TV3 reporters here, Tuesday.
Thus far, Azmin had met several high-technology (hi-tech) companies such global semiconductor company Texas Instruments Inc. and global materials supplier to the electronics assembly and semiconductor packaging industries Indium Corporation, and he is scheduled to engage with more hi-tech industry players on his next visits to San Francisco, Seattle and Los Angeles.
TSMC’s projection comes as concerns persist that inflation, the war in Ukraine and Chinese lockdowns will hammer demand for gadgets. On Wednesday, executives acknowledged smartphones and computers have been hard-hit but that spending in other areas such as electric vehicles have exceeded expectations. They played down the effect of inflation, saying the rise in prices was gradually abating.
The semiconductor sector continues to be favoured by analysts, especially the outsourced semiconductor assembly and test (Osat) providers.
The Osat companies have got it going with a strong sales pipeline and earnings growth prospect, anchored by their expansion roadmap and robust balance sheet, said TA Securities Research in its latest report.
“We also expect them to continue benefiting from the global structural growth in chip demand, alongside the ongoing acceleration in digitalisation and proliferation of secular technology trends like 5G, artificial intelligence, cloud computing, Internet of Things, robotics and vehicle electrification,” it said.
It maintained its “overweight” stance on the technology sector The star 10 June2022
WASHINGTON/SAN FRANCISCO/TAIPEI (June 13): China's semiconductor industry is showing signs of flourishing even in the face of Biden administration efforts to counter its growth, raising alarm bells in Washington.
Chinese orders for chip-manufacturing equipment from overseas suppliers rose 58% in 2021, making it the biggest market for those products for a second year running, according to data provided by industry body Semi.
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