Pentamaster Corp We forecast stronger sales contribution from the electro-optical division in FY21F, driven by a higher conversion rate of prototypes into recurring sales. For example, the group indicated it received a sizeable order for its new 3Dmagnetometer sensor, which goes into touchscreen applications. Pentamaster’s order book hovered at the RM230m level as of early-May. In spite of the ongoing impact of chip shortages and higher raw material cost, the group is upbeat about stronger sales and earnings recovery from 2Q21F onwards, driven by an improvement in sales mix towards higher margin solutions in electro-optical and automotive segments.
We see Pentamaster primed to benefit from the structural shift from the accelerating adoption of silicon carbide and gallium nitrate power products in EVs and smartphone fast chargers, given its early-mover advantage and experience in the power semiconductor market. The group aims to increase its exposure in the automotive segment from 16% in FY19 to 30% over the next 3-5 years.
The group is investing RM25m to set up a new plant in Batu Kawan, with an additional 100k sq ft of floor area, to support its factory automation solution (FAS) and medical device segment expansion from FY22F onwards, given that its existing plants in Bayan Lepas and Batu Kawan are running at nearly 100% and 75% capacity utilisation, respectively. The group remains upbeat on its medical device segment, which it projects will contribute 30% to its FY23F revenue. Overall, we project the group to deliver a 3-year EPS CAGR of 18%. Retain Add, with a RM5.85 TP, still based on 36x CY22F P/E, +0.5 s.d. above the sector mean.
Labour point of view, from day time become night shift. Labour health become bad. This company might follow topglove footstep. In order to meet production due date, staff health have been ignore.
Market will always be volatile that's why only invest in company with good fundamentals.
With solid orders in hand, especially for higher-margin semiconductor and smartphone-related products, Pentamaster Corp Bhd seems to be well-positioned to make a comeback this year. The cash-rich Penang-based company has already begun its financial year 2021 with a 15% jump in sales in the first quarter (Q1), although it was not spared from the sector-wide margin pressure. The company also benefits from the ongoing semiconductor industry “supercycle” as market demand exceeds global supply.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3067 views | 2 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Selina888
306 posts
Posted by Selina888 > 2021-05-17 11:55 | Report Abuse
Kikiki.......can probably get at 4.55