Financial Performance - The group's revenue for the fiscal year ended December 31, 2024, was RM 622.4 million, a decrease of 10.0% compared to RM 691.9 million in 2023[6]. - The net profit for the fiscal year was RM 107.1 million, down 24.7% from RM 142.2 million in the previous year[6]. - Basic earnings per share for the fiscal year were 4.51 sen, down from 5.97 sen in 2023[5]. - The company reported a decrease in pre-tax profit to 108,579 thousand MYR in 2024 from 143,107 thousand MYR in 2023, a decline of about 24.2%[15]. - The company recorded a net profit of RM 107,128,000 for the year 2024, a decrease of 24.7% from RM 142,233,000 in 2023[29]. - The company incurred a loss of 200,020 thousand MYR from investing activities in 2024, compared to a loss of 110,512 thousand MYR in 2023, indicating a significant increase in investment outflows[16]. - The company reported a total of RM 10,796,000 in other income for 2024, down from RM 17,917,000 in 2023[35]. - The company generated a cash net amount of RM 140.0 million from operations, with cash and cash equivalents at RM 298.0 million as of December 31, 2024[95]. Assets and Equity - Total assets as of December 31, 2024, amounted to RM 1,193.5 million, an increase from RM 1,159.0 million in 2023[12]. - Total equity increased to RM 922.5 million in 2024 from RM 848.0 million in 2023[12]. - Cash and cash equivalents as of December 31, 2024, were RM 298.0 million, compared to RM 395.8 million in 2023[6]. - The company's total reserves increased to 910,153 thousand MYR in 2024 from 835,632 thousand MYR in 2023, marking an increase of approximately 8.9%[13]. - Trade receivables totaled 171,770 thousand MYR in 2024, down from 198,483 thousand MYR in 2023, indicating a reduction of approximately 13.4%[47]. Segment Performance - The Automation Testing Equipment (ATE) segment generated revenue of RM 224,390,000, down 50.4% from RM 452,254,000 in the previous year[33]. - The Factory Automation Solutions (FAS) segment reported revenue of RM 398,043,000, an increase of 66.3% compared to RM 239,596,000 in 2023[33]. - The medical segment's revenue grew over 100.0%, now accounting for 50.0% of total revenue, up from 21.4% in 2023, reflecting strong demand for precision medical solutions[67]. - The automotive segment experienced a significant decline of 56.6%, marking the first annual drop since 2017, while other segments like semiconductor and consumer products also saw reductions of 49.0% and 22.6% respectively[66]. - The optoelectronics segment rebounded, contributing approximately 13.0% to total revenue, up 23.6% from 9.5% the previous year, driven by increased demand for advanced sensors in mobile devices[70]. Dividends and Shareholder Actions - The board did not recommend any final dividend for the fiscal year ended December 31, 2024[6]. - The company approved a final dividend of 29,443 thousand MYR for 2023, which was not paid out in 2024[13]. - The proposed final dividend per ordinary share remains at 0.02 HKD for both 2024 and 2023, with total dividends of 28,834 thousand MYR in 2024 compared to 27,557 thousand MYR in 2023[45]. - The company announced a proposed privatization of Pentamaster International Limited on December 19, 2024, along with a special dividend of HKD 0.07 per share, totaling HKD 60,651,501, pending shareholder approval[119]. Operational Insights - The company is actively expanding its global customer base in the medical sector to meet evolving industry demands, with strategic investments in leading manufacturing technologies and automation processes[67]. - The company faces challenges from economic and geopolitical factors, including rising interest rates and trade barriers, impacting business expansion and capital investment[63]. - The company plans to complete a new production facility by the end of 2024, significantly enhancing its capacity to undertake larger and more complex projects[108]. - The company anticipates continued growth in the medical division, which remains the largest contributor to current orders, followed by the automotive and semiconductor sectors[99]. - The FAS division is expected to maintain its upward trajectory, driven by increasing adoption of manufacturing automation across various industries[100]. Financial Ratios and Expenses - Operating cash flow for the year was 140,018 thousand MYR, down from 216,751 thousand MYR in 2023, indicating a decrease of about 35.3%[16]. - Administrative expenses decreased from RM 76.2 million in 2023 to RM 69.9 million in 2024, primarily due to reduced employee costs and lower foreign exchange losses[91]. - The company's warranty provision increased to 3,019 thousand MYR in 2024 from 2,494 thousand MYR in 2023, reflecting a rise of about 21%[53]. Market Trends and Future Outlook - The group has observed an increasing trend towards automation integration in the renewable energy sector, particularly in solar energy manufacturing, aiming to enhance production efficiency and capacity[102]. - The group anticipates a continuous increase in demand for its testing equipment in India, driven by the rapid expansion of the semiconductor industry and favorable investment conditions[106]. - The semiconductor segment is expected to recover in the second half of 2024, driven by advancements in AI and high-performance computing[72].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HK$ 0.75, reflecting a decrease from the previous target of HK$ 0.95 [2][3]. Core Insights - The company's revenue for the third quarter of 2024 decreased by 16.9% year-on-year to RM 150 million, with a year-to-date decline of 5.9% [2][3]. - The medical business segment remains stable, generating approximately RM 78.964 million in revenue, benefiting from contributions from key clients [3]. - The report anticipates further growth in the medical segment due to increased penetration of automation solutions and initial contributions from single-use medical devices [3]. - The performance of other business segments is mixed, with the automotive segment recording approximately RM 32.612 million, which has negatively impacted the overall performance of the automation testing equipment segment [3]. - The gross profit margin is expected to recover, with a rebound from 28.1% in Q2 2024 to 28.8% in Q3 2024, driven by higher margins in the factory automation solutions segment [3]. Financial Summary - Total revenue projections for the company are as follows: RM 691.9 million in 2023, RM 651.2 million in 2024 (estimated decline of 5.9%), RM 735.0 million in 2025, and RM 806.2 million in 2026 [8]. - The net profit for 2024 is projected to be RM 117.7 million, with a year-on-year growth of 6.7% [8]. - The company’s gross profit is expected to be RM 209.6 million in 2025, with a gross margin of 30.3% [8]. - The report indicates a cautious outlook due to macroeconomic factors affecting growth potential [3].

Investment Rating - The report assigns a "BUY" rating for Pentamaster (01665.HK) [3] Target Price - The target price is set at HK$ 0.75, down from a previous target of HK$ 0.95 [4][20] Current Price and Market Capitalization - The current price is HK$ 0.61, with a market capitalization of HK$ 1.5 billion [5][7] Revenue and Profitability - Pentamaster recorded a revenue of MYR 150.1 million in Q3 2024, reflecting a 16.9% year-over-year decline, leading to a 5.9% decrease in revenue for the first nine months of 2024 [18] - The gross profit for 2023 is reported at MYR 209.6 million, with projections of MYR 187.3 million for 2024 and MYR 212.8 million for 2025 [10][26] - The gross margin is expected to improve from 28.8% in Q3 2024 to 31.0% by 2026 [11][20] Segment Performance - The medical segment achieved stable revenue of MYR 79.0 million, expected to grow due to increased automation and contributions from single-use medical devices [19] - The automotive segment generated MYR 32.6 million in Q3 2024, but faced challenges due to cautious customer spending and macroeconomic uncertainties [19] Financial Projections - Revenue projections for the upcoming years are MYR 651.2 million for 2024, MYR 735.0 million for 2025, and MYR 806.2 million for 2026, indicating a recovery trend [9][26] - Profit attributable to shareholders is projected to be MYR 117.7 million in 2024, with an expected increase to MYR 161.8 million by 2026 [12][26] Performance Metrics - The return on equity (ROE) is projected to decline from 18.0% in 2023 to 13.1% in 2024, before gradually improving to 14.2% by 2026 [13][26] - The company has experienced a significant decline in stock performance, with a 30.3% drop over the past year [15] Market Context - The report highlights macroeconomic uncertainties as a primary obstacle affecting the company's performance and outlook [20] - The automotive segment's recovery remains weak, influenced by political issues in the US and policy uncertainties [19][20]

Financial Performance - The company's revenue for the nine months ended September 30, 2024, was 492.2 million MYR, a decrease of 5.9% compared to 522.8 million MYR in the same period last year[4]. - The profit for the period was approximately 88.8 million MYR, representing an 18.1% decrease from 108.4 million MYR in the previous year[5]. - The gross profit for the nine months was 141.2 million MYR, compared to 155.7 million MYR in the previous year, indicating a decline[4]. - Basic and diluted earnings per share for the nine months were 3.73 sen, down from 4.54 sen in the same period last year[4]. - The company reported total comprehensive income of 88.5 million MYR for the nine months, down from 108.4 million MYR in the previous year[9]. - The operating profit before tax for the nine months ended September 30, 2024, was 89.9 million MYR, down from 110.9 million MYR in the previous year[28]. - Cash generated from operating activities for the nine months ended September 30, 2024, was 141.7 million MYR, compared to 217.2 million MYR for the same period in 2023[24]. - EBITDA decreased by 15.1% to RM 104.1 million from RM 122.6 million in the previous year[50]. - The overall decrease in net profit and EBITDA was attributed to reduced revenue from the ATE segment, increased employee costs due to prior one-time bonus payments, and adverse foreign exchange fluctuations[50]. Assets and Liabilities - Total assets as of September 30, 2024, were 1,139.5 million MYR, compared to 1,159.0 million MYR as of December 31, 2023[11]. - Non-current assets increased to 480.3 million MYR from 354.6 million MYR year-on-year[11]. - Current liabilities decreased to 216,086 thousand MYR from 301,582 thousand MYR, representing a reduction of 28.4%[14]. - Total liabilities decreased to 229,731 thousand MYR from 311,069 thousand MYR, a decline of 26.1%[14]. - Total equity as of September 30, 2024, is 909,784 thousand MYR, an increase of 7.3% from 847,972 thousand MYR as of December 31, 2023[14]. - The company’s reserves increased to 897,445 thousand MYR from 835,632 thousand MYR, reflecting a growth of 7.4%[14]. Cash Flow - The cash flow from investing activities for the nine months ended September 30, 2024, was a net outflow of 136.9 million MYR, compared to 83.9 million MYR in the previous year[24]. - The cash flow from financing activities for the nine months ended September 30, 2024, was a net outflow of 30.5 million MYR, slightly improved from 33.2 million MYR in 2023[24]. Segment Performance - The ATE segment generated revenue of 196.5 million MYR for the nine months ended September 30, 2024, compared to 358.7 million MYR in the same period of 2023[28]. - The FAS segment reported revenue of 311.8 million MYR for the nine months ended September 30, 2024, down from 176.8 million MYR in the previous year[28]. - ATE segment revenue decreased by 47.8% to 187.2 million MYR compared to 358.3 million MYR in the same period last year, with a significant decline of 55.2% year-over-year[39]. - FAS segment revenue reached 305.0 million MYR for the nine months ended September 30, 2024, representing an 85.4% increase from 164.5 million MYR in the same period last year[42]. - Medical devices accounted for 76.9% of FAS segment revenue, up from 59.8% year-over-year, reflecting the industry's shift towards factory automation solutions[42]. - The automotive sector remains the largest contributor to the ATE segment, accounting for approximately 63.9% of total revenue, despite ongoing challenges in the market[39]. Market Outlook - The company anticipates continued weak demand in major segments, particularly in the automotive sector, for the remainder of 2024[31]. - The company expects to end the fiscal year with stable revenue momentum despite ongoing geopolitical risks and economic uncertainties[31]. - The company maintains a long-term optimistic outlook for the ATE segment, driven by its diversified product portfolio and participation in key growth areas[40]. Administrative and Other Expenses - Administrative expenses increased from RM 46.7 million in the previous year to RM 57.8 million, primarily due to a foreign exchange loss of RM 15.5 million compared to RM 6.2 million in the previous year[48]. - Net expected credit loss provisions for receivables increased by RM 1.2 million during the period[48]. - Administrative personnel costs decreased by RM 2.3 million, mainly due to lower employee benefits expenses[49]. Other Income and Recognition - The company recorded other income of 13.1 million MYR for the nine months, an increase from 9.2 million MYR in the previous year[7]. - Other income increased from 9.2 million MYR to 13.1 million MYR, driven by bank interest income and miscellaneous income, despite a net foreign exchange loss of approximately 10.6 million MYR[46]. - The company was recognized for the fifth time in Forbes' "Best Under a Billion" list in August 2024, reflecting its strong performance record[39].

Financial Performance - The company reported revenue of 342.1 million MYR for the six months ended June 30, 2024, nearly unchanged from 342.1 million MYR in the same period last year[5]. - Gross profit decreased to 97.9 million MYR, down 2.5% from 100.5 million MYR year-on-year[5]. - Profit for the period was 62.7 million MYR, representing a decrease of 12.8% compared to 71.9 million MYR in the previous year[5]. - Basic earnings per share for the period were 2.64 sen, down from 3.02 sen in the previous year[5]. - Operating profit for the first half of 2024 was 63.9 million MYR, down from 72.8 million MYR in the same period last year[6]. - The company reported a net profit attributable to owners of RM 32,469 thousand for the three months ended June 30, 2024, a decrease of 13.8% compared to RM 37,548 thousand in the same period of 2023[7]. - The company's pre-tax profit for the six months ended June 30, 2024, was 63,626 thousand MYR, a decrease of 13.3% compared to 73,574 thousand MYR in the same period of 2023[11]. - EBITDA for the first half of 2024 was RM 72.9 million, down 9.4% from RM 80.5 million in the same period last year[47]. Cash Flow and Assets - Cash and cash equivalents as of June 30, 2024, were 350.7 million MYR, down from 395.8 million MYR as of December 31, 2023[5]. - Total assets decreased to RM 1,113,191 thousand as of June 30, 2024, from RM 1,159,041 thousand as of December 31, 2023, representing a reduction of 3.9%[9]. - Non-current assets increased to RM 441,036 thousand as of June 30, 2024, compared to RM 354,566 thousand as of December 31, 2023, indicating a growth of 24.4%[8]. - Operating cash flow generated was 43,919 thousand MYR, down from 75,088 thousand MYR year-over-year, reflecting a decline of 41.5%[12]. - The group generated a positive cash flow of RM 43.9 million from operations in the first half of 2024, primarily used for the construction of the third factory[48]. Market and Segment Performance - Revenue from external customers in the Automation Testing Equipment segment was RM 142,608 thousand, while the Factory Automation Solutions segment generated RM 199,446 thousand[22]. - The automation testing equipment segment's revenue decreased by RM 117.1 million, from RM 259.7 million in H1 2023 to RM 142.6 million in H1 2024, primarily due to a decline in automotive sales and adverse factors in the semiconductor industry[42]. - The factory automation solutions segment achieved total revenue of RM 199.4 million in H1 2024, marking a significant increase of 141.9% compared to H1 2023[43]. - The medical equipment sector contributed RM 155.5 million, accounting for 45.5% of total revenue in H1 2024, compared to RM 34.4 million or 10.1% in H1 2023[44]. - The automotive segment's revenue dropped to RM 95.3 million in H1 2024, down 51.6% from RM 196.7 million in H1 2023, reflecting a significant market downturn[44]. - The semiconductor segment's contribution to revenue decreased to 6.2% in H1 2024, down from 15.0% in H1 2023, indicating a shift in market dynamics[44]. Strategic Initiatives - The company aims to diversify its business into the medical technology sector, leveraging automation solutions to enhance healthcare services[4]. - Future strategies include the development of advanced catheter assembly machines and high-performance catheter systems to meet evolving market demands[4]. - The group anticipates significant opportunities in the electric vehicle market due to regulatory support and expanding charging infrastructure[53]. - The group has identified growth factors including artificial intelligence and medical manufacturing automation as key drivers for future business development[52]. - The company is focusing on expanding its market presence and enhancing its product offerings, although specific new products or technologies were not detailed in the report[10]. Shareholder and Governance Information - Major shareholders include PCB Pandanus Partners L.P. with a beneficial ownership of 1,533,549,989 shares, representing 63.90%[59]. - The company has a share reward plan adopted on April 1, 2020, aimed at recognizing employee contributions and retaining talent[61]. - The company has complied with all applicable provisions of the corporate governance code during the six months ending June 30, 2024[67]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024[68]. Dividend and Equity - The company did not recommend any interim dividend for the six months ended June 30, 2024[5]. - The company's total equity increased to RM 885,209 thousand as of June 30, 2024, from RM 847,972 thousand as of December 31, 2023, reflecting an increase of 4.4%[9]. - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[31].

Investment Rating - The report assigns a "BUY" rating to Pentamaster (01665.HK) with a target price of HK$ 0.95 [2][3]. Core Insights - Pentamaster's performance in the first half of 2024 was sluggish, with revenue remaining flat at MYR 342.1 million compared to the previous year. The ATE segment saw a significant decline of 45.1% year-on-year, while the FAS segment experienced a growth of 1.4 times [3]. - The gross margin decreased due to R&D expenses and reduced economies of scale in the ATE segment, leading to a year-on-year decline in the bottom line of 12.8% for 2024 1H and 13.5% for Q2 [3]. - The medical segment showed stable contributions from a major customer, generating MYR 155.5 million, which provides a decent outlook despite downward adjustments in forecasts [3]. - The report expresses concerns about the recovery of other segments, particularly the semiconductor and automotive segments, which saw declines of 63.2% and 51.8% year-on-year, respectively, in Q2 [3]. - The report indicates that recovery is delayed due to macroeconomic issues, but maintains a long-term positive outlook due to potential drivers like KGD testers and single-use medical devices expected in FY 2025 [3]. Financial Overview - For 2024, revenue is projected to be MYR 738.8 million, with a year-on-year growth of 6.8%. The gross profit is expected to be MYR 212.0 million, with a gross margin of 28.7% [9]. - The net profit for 2024 is estimated at MYR 131.8 million, reflecting a year-on-year decline of 7.3% [9]. - The financial ratios indicate a gross margin of 30.3% for 2023, with a projected decrease to 28.7% in 2024 [11]. Peer Comparison - Pentamaster's market capitalization is approximately HKD 1.6 billion, with a P/E ratio of 6.7 and a forward P/E of 5.1. The average gross margin among peers is 39.0% [6].

Investment Rating - The investment rating for Pentamaster (01665. HK) is "Buy" with a target price of HKD 0.95 per share [1][3]. Core Insights - The company experienced a stagnant revenue of MYR 342.1 million in the first half of 2024, with a significant decline of 45.1% in the ATE segment, offset by a 1.4 times increase in the FAS segment. The overall performance saw a year-on-year decline of 12.8% [2][3]. - Despite the disappointing performance, the medical sector remains a strong contributor, with MYR 155.5 million from major clients, providing a positive outlook for the company [2]. - The report emphasizes the potential drivers for growth in FY2025, including the delivery of prototype devices and single-use medical devices to new clients [2][3]. Financial Summary - Revenue projections for Pentamaster are as follows: MYR 691.9 million in 2023, MYR 738.8 million in 2024, MYR 931.4 million in 2025, and MYR 1,026.5 million in 2026 [1][10]. - Gross profit is expected to be MYR 209.6 million in 2023, increasing to MYR 310.5 million by 2026, with gross margins around 30.3% in 2023 and stabilizing around 30.2% by 2026 [1][10]. - The return on equity (ROE) is projected to be 18.0% in 2023, declining to 16.2% by 2026 [1][10]. Market Performance - The stock has underperformed in the past year, with a decline of 19.8% over the last month and 31.8% over the past year compared to the Hang Seng Index [1][2]. - The report notes that the semiconductor and automotive sectors have seen significant declines, with contributions down 63.2% and 51.8% respectively in the second quarter [2][3]. Sector Comparison - Pentamaster's market capitalization is approximately MYR 1.56 billion, with a P/E ratio of 6.7 and a P/B ratio of 1.0, indicating a relatively low valuation compared to peers [7]. - The average P/E ratio for comparable companies in the sector is around 39.0, highlighting potential undervaluation of Pentamaster [7].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HK$ 0.95 [1]. Core Insights - The company's performance in the first half of the fiscal year was disappointing, with total revenue of approximately 340 million Malaysian Ringgit, showing a year-on-year decline of 12.8% and 13.5% in net profit for the first half and second quarter respectively [1]. - The revenue contribution from major medical clients remained stable, with 160 million Malaysian Ringgit generated from the medical segment, despite a downward adjustment in financial forecasts for these clients [1]. - The semiconductor and automotive segments experienced significant declines, with year-on-year drops of 63.2% and 51.8% respectively, impacting overall financial performance [1]. - The company is expected to benefit from new products like KGD testing instruments and single-use medical devices, which may contribute to revenue in the fiscal year 2025 [1]. Financial Summary - Total revenue projections for the upcoming years are as follows: 691.9 million in 2023, 738.8 million in 2024, 931.4 million in 2025, and 1,026.5 million in 2026, indicating a growth rate of 15.2% in 2023 and 6.8% in 2024 [5]. - Gross profit is projected to be 209.6 million in 2025 and 310.5 million in 2026, with gross margins expected to stabilize around 30.3% [5]. - Net profit is forecasted to reach 142.2 million in 2025 and 195.3 million in 2026, with a year-on-year growth of 32.5% in 2025 [5]. Market Comparison - The company has a market capitalization of approximately 1.56 billion Hong Kong dollars, with a price-to-earnings ratio of 6.7 and a projected price-to-earnings ratio of 5.1 [2]. - The average gross margin for comparable companies in the industry is around 46.4%, while the company’s gross margin stands at 30.3% [2].

Financial Performance - The company reported revenue of 342.1 million MYR for the six months ended June 30, 2024, nearly unchanged from 342.1 million MYR in the same period last year[4]. - The net profit for the period was 62.7 million MYR, a decrease of 12.8% compared to 71.9 million MYR in the previous year[4]. - Basic earnings per share for the six months ended June 30, 2024, were 2.64 sen, compared to 3.02 sen for the same period last year[4]. - The gross profit margin for the six months ended June 30, 2024, was approximately 28.6%, down from 29.4% in the previous year[4]. - The company’s operating profit for the six months ended June 30, 2024, was 63.9 million MYR, down from 72.8 million MYR in the previous year[5]. - The company recorded other income of 5.4 million MYR for the six months ended June 30, 2024, compared to 4.4 million MYR in the previous year[5]. - The company’s total comprehensive income for the period was 62.7 million MYR, down from 71.8 million MYR in the previous year[6]. - The company reported a profit before tax of 63,626 thousand MYR, with a net profit of 62,693 thousand MYR for the same period[21]. - The net profit attributable to the owners of the company for the six months ended June 30, 2024, was 62,694 thousand MYR, down from 71,871 thousand MYR in the same period of 2023, representing a decline of about 13%[29]. - The company’s total comprehensive income for the six months ended June 30, 2024, was 62,689 thousand MYR, down from 71,871 thousand MYR in the previous year, indicating a decline of approximately 12.8%[10]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2024, were 350.7 million MYR, down from 395.8 million MYR as of December 31, 2023[4]. - Cash generated from operating activities for the six months ended June 30, 2024, was 43,919 thousand MYR, compared to 75,088 thousand MYR for the same period in 2023, reflecting a decline of approximately 41.5%[11]. - Cash flow from investing activities showed a net cash outflow of 89,251 thousand MYR, significantly higher than the previous year's outflow of 44,870 thousand MYR[12]. - The company’s cash flow from operating activities before changes in working capital was 73,006 thousand MYR for the six months ended June 30, 2024, compared to 66,476 thousand MYR for the same period in 2023, indicating an increase of approximately 9.0%[11]. - Cash and cash equivalents decreased from RM 395.8 million on December 31, 2023, to RM 350.7 million on June 30, 2024, with no bank borrowings reported[46]. - The current ratio improved to 3.14 as of June 30, 2024, compared to 2.67 at the end of 2023, indicating a stronger liquidity position[45]. Assets and Liabilities - Total assets as of June 30, 2024, were 1,113.2 million MYR, a decrease from 1,159.0 million MYR as of December 31, 2023[7]. - Total equity as of June 30, 2024, is 885,210 thousand MYR, an increase from 847,972 thousand MYR as of December 31, 2023, representing a growth of approximately 4.4%[9]. - Total liabilities decreased to 227,982 thousand MYR as of June 30, 2024, down from 311,069 thousand MYR as of December 31, 2023, indicating a reduction of about 26.6%[9]. - The company’s retained earnings as of June 30, 2024, stood at 754,923 thousand MYR, an increase from 691,620 thousand MYR as of December 31, 2023, reflecting a growth of approximately 9.2%[10]. - Trade receivables aged 0 to 30 days decreased to 36,584 thousand MYR from 64,493 thousand MYR as of December 31, 2023, indicating a decline of approximately 43.3%[31]. - Contract liabilities as of June 30, 2024, were 65,138 thousand MYR, down from 137,940 thousand MYR as of December 31, 2023, representing a decrease of approximately 52.8%[35]. Segment Performance - The revenue contribution from the automation testing equipment segment was 143,056 thousand MYR, a significant decrease of 45.1% compared to 259,969 thousand MYR in the previous year[36]. - The factory automation solutions segment saw a revenue increase of 141.9%, reaching 205,139 thousand MYR compared to 88,546 thousand MYR in the same period of 2023[36]. - The revenue of the automation testing equipment segment decreased by approximately 117.1 million MYR, from 259.7 million MYR in H1 2023 to 142.6 million MYR in H1 2024, primarily due to a decline in automotive sales and adverse factors in the semiconductor industry[37]. - The automotive segment accounted for 63.9% of the automation testing equipment segment's market share, experiencing a significant decline of 52.9% compared to H1 2023[37]. - The optoelectronics segment saw a substantial increase of 97.0% in H1 2024, contributing 26.4% to the automation testing equipment segment, up from 7.4% in the same period last year[37]. - The semiconductor segment's contribution to the automation testing equipment segment's revenue decreased to approximately 9.0% in H1 2024, down from 17.9% in H1 2023[37]. - The medical equipment division's contribution to the factory automation solutions segment surged from 41.8% in H1 2023 to 78.0% in H1 2024[38]. Corporate Governance and Compliance - The company has adhered to the corporate governance code as per the listing rules for the six months ending June 30, 2024[55]. - The audit committee, established on December 19, 2017, includes two independent non-executive directors and one non-executive director, responsible for overseeing financial reporting and internal controls[57]. - The company has confirmed compliance with the standard code for securities trading by all directors for the six months ending June 30, 2024[56]. - The unaudited condensed consolidated financial statements for the six months ending June 30, 2024, have been reviewed by the audit committee[58]. - The interim results announcement will be published on the Hong Kong Stock Exchange and the company's website[59]. Future Outlook and Market Trends - The semiconductor testing equipment market is projected to grow by 7.4% in 2024, with assembly and packaging equipment sales expected to increase by 10.0% due to rising demand for advanced logic and memory applications[49]. - The group identified growth factors such as artificial intelligence, automotive electrification, and medical manufacturing automation as key drivers for business development[49]. - The group is optimistic about the electric vehicle market, citing strong structural fundamentals supported by regulatory backing and growing consumer demand[49]. - The group aims to expand its market presence in Europe, where its revenue contribution is currently below 10.0%, by establishing an office in Germany[49]. - The group has received orders from the solar manufacturing sector, indicating a trend towards automation in the industry[50].

Investment Rating - The report assigns a "Buy" rating to Pentamaster with a target price of HKD 1.10, reflecting a potential upside from the current price of HKD 0.74 [17]. Core Insights - The report highlights a significant revenue increase in the medical sector, which grew 3.1 times to MYR 78.5 million, accounting for 46.0% of total revenue in Q1 2024 [17]. - Despite a 11.9% decline in net profit to MYR 30.2 million due to decreased gross margins in the ATE segment and rising employee costs, the medical sector's strong contribution is expected to continue [17]. - The automotive sector remains weak, with order delays attributed to market headwinds, although long-term optimism for electric vehicle growth is noted [17]. - The report anticipates that the KGD testing personnel will generate revenue, potentially improving the automotive business segment [17]. Financial Summary - Revenue projections for Pentamaster are as follows: MYR 691.9 million in 2023, increasing to MYR 768.1 million in 2024, MYR 942.6 million in 2025, and MYR 1,027.3 million in 2026, reflecting a compound annual growth rate (CAGR) of 11.0% from 2023 to 2024 [4]. - Gross profit is expected to rise from MYR 209.6 million in 2023 to MYR 310.7 million in 2026, with gross margins remaining stable around 30% [4][17]. - Net profit is projected to grow from MYR 142.2 million in 2023 to MYR 196.7 million in 2026, with a notable increase of 24.2% in 2025 [4]. Market Comparison - Pentamaster's market capitalization is MYR 1.75 billion, with a P/E ratio of 7.5, which is significantly lower than the average P/E ratio of 83.1 for comparable companies [21]. - The report indicates that Pentamaster's revenue for 2023 is MYR 1,188.9 million, with a gross margin of 30.3% and a return on equity (ROE) of 16.7% [21].