KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Pentamaster Corp Bhd reported a 15.87% decline in its second-quarter net profit due to reduced sales volume in its automated test equipment (ATE) segment, increased employee expenses, provisions for slow-moving inventories, and research and development expenditures.
Financial Highlights:
2QFY2024 Performance:
- Net Profit: Fell to RM19.9 million from RM23.65 million in 2QFY2023.
- Revenue: Decreased by 3.11% to RM171.37 million from RM176.88 million in the same quarter last year.
1HFY2024 Performance:
- Net Profit: Declined by 12.58% to RM39.28 million from RM44.93 million in 1HFY2023.
- Revenue: Slightly decreased to RM342.16 million from RM342.19 million in 1HFY2023.
Business Challenges:
- Automated Test Equipment (ATE) Segment:
- The ATE segment, Pentamaster's largest revenue contributor, faced subdued demand as global manufacturers exercised caution in capital equipment spending.
- The group's order book contracted during the period, with slower-than-expected replenishment and recovery of orders.
Future Outlook:
Optimism in ATE Segment:
- Despite current challenges, Pentamaster remains optimistic about the ATE segment's recovery and future prospects due to its diversified portfolio and coverage.
- The company is particularly hopeful about the growing role of artificial intelligence (AI) in cloud and data centers, expecting increased demand for its test equipment used in advanced semiconductor packaging.
Emerging Opportunities:
- Silicon Carbide-based Power Solutions: The adoption of silicon carbide-based power solutions, particularly in data centers and high-bandwidth memory chipsets, is expected to drive demand for the group's wafer-level burn-in testers and test handler solutions.
- Electric Vehicle Market: Regulatory support, expanding charging infrastructure, industry capital expenditure, and rising consumer demand in the electric vehicle market are anticipated to fuel substantial growth for Pentamaster.
- Automotive Sector: The entry of Chinese carmakers setting up manufacturing and assembly plants outside China presents growth opportunities, especially in Europe, where Pentamaster currently generates less than 10% of its total revenue.
- Automation in Renewable Energy: The integration of automation with renewable energy is gaining momentum, with solar manufacturers increasingly adopting automation technology. Pentamaster has received orders from this industry.
Market Performance:
- Stock Performance:Shares in Pentamaster closed up one sen or 0.2% at RM4.90 on Thursday, resulting in a market capitalization of RM3.49 billion.
Pentamaster is navigating a challenging market environment with cautious optimism, leveraging emerging trends and technologies to position itself for future growth. The company is strategically focusing on expanding its presence in new markets and sectors to capitalize on untapped opportunities.
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