SEHK:1665

Stock Analysis Report

Pentamaster International

Executive Summary

Pentamaster International Limited, an investment holding company, engages in designing, manufacturing, and installing automated manufacturing solutions.


Snowflake Analysis

Outstanding track record with excellent balance sheet.

Share Price & News

How has Pentamaster International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1665 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.9%

1665

-3.5%

HK Semiconductor

0.3%

HK Market


1 Year Return

98.0%

1665

51.2%

HK Semiconductor

-5.1%

HK Market

Return vs Industry: 1665 exceeded the Hong Kong Semiconductor industry which returned 51.2% over the past year.

Return vs Market: 1665 exceeded the Hong Kong Market which returned -5.1% over the past year.


Shareholder returns

1665IndustryMarket
7 Day6.9%-3.5%0.3%
30 Day-1.5%-1.6%-3.9%
90 Day-2.4%36.5%4.4%
1 Year101.3%98.0%53.4%51.2%-1.6%-5.1%
3 Yearn/a44.8%37.7%13.4%1.9%
5 Yearn/a31.4%20.1%15.6%-3.6%

Price Volatility Vs. Market

How volatile is Pentamaster International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pentamaster International undervalued compared to its fair value and its price relative to the market?

15.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1665 (HK$2.02) is trading below our estimate of fair value (HK$2.4)

Significantly Below Fair Value: 1665 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1665 is good value based on its PE Ratio (13.9x) compared to the Semiconductor industry average (19.2x).

PE vs Market: 1665 is poor value based on its PE Ratio (13.9x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1665 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 1665 is overvalued based on its PB Ratio (4.3x) compared to the HK Semiconductor industry average (1.4x).


Next Steps

Future Growth

How is Pentamaster International forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1665's forecast earnings growth (19.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 1665's earnings (19.7% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

High Growth Earnings: 1665's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1665's revenue (18.1% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).

High Growth Revenue: 1665's revenue (18.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1665's Return on Equity is forecast to be high in 3 years time (27.8%)


Next Steps

Past Performance

How has Pentamaster International performed over the past 5 years?

44.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1665 has high quality earnings.

Growing Profit Margin: 1665's current net profit margins (26.1%) are higher than last year (21.2%).


Past Earnings Growth Analysis

Earnings Trend: 1665's earnings have grown significantly by 44.3% per year over the past 5 years.

Accelerating Growth: 1665's earnings growth over the past year (45.7%) exceeds its 5-year average (44.3% per year).

Earnings vs Industry: 1665 earnings growth over the past year (45.7%) exceeded the Semiconductor industry 4.2%.


Return on Equity

High ROE: 1665's Return on Equity (30.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pentamaster International's financial position?


Financial Position Analysis

Short Term Liabilities: 1665's short term assets (MYR452.5M) exceed its short term liabilities (MYR153.8M).

Long Term Liabilities: 1665's short term assets (MYR452.5M) exceed its long term liabilities (MYR7.8M).


Debt to Equity History and Analysis

Debt Level: 1665's debt to equity ratio (0.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1665's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1665's debt is well covered by operating cash flow (3791.8%).

Interest Coverage: 1665 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1665 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1665's debt is covered by short term assets (assets are 132.4x debt).


Next Steps

Dividend

What is Pentamaster International's current dividend yield, its reliability and sustainability?

0.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1665's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1665's dividend (0.72%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.28%).


Stability and Growth of Payments

Stable Dividend: 1665 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1665 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1665 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1665's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Pentamaster International has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Pei Gan
CFO & Executive Director2.7yrsRM724.00k0.32% MYR10.2m
Choon-Bin Chuah
Executive Chairman2.2yrsno data1.11% MYR35.7m
Tuck Hon
Operations Director12.8yrsno datano data
Sum Yi Tsui
Company Secretary2.5yrsno datano data
Eng Teh
Chief operating officer of Pentamaster Technology (M) Sdn. Bhd.5.1yrsno datano data
Chin Ng
Chief Operating Officer of Pentamaster Equipment Manufacturing Sdn Bhd5.1yrsno datano data

5.1yrs

Average Tenure

44yo

Average Age

Experienced Management: 1665's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pei Gan
CFO & Executive Director2.7yrsRM724.00k0.32% MYR10.2m
Choon-Bin Chuah
Executive Chairman2.2yrsno data1.11% MYR35.7m
May May Chan
Independent Non-Executive Director2.2yrsRM69.00kno data
Seng Sim
Independent Non-Executive Director2.2yrsRM69.00kno data
Kean Yong Leng
Non-Executive Director2.5yrsRM97.00k0.035% MYR1.1m
Jin-Chong Chuah
Independent Non-Executive Director2.2yrsRM67.00k0.0070% MYR225.1k

2.2yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 1665's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

Pentamaster International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pentamaster International Limited
  • Ticker: 1665
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: HK$3.216b
  • Shares outstanding: 1.60b
  • Website: https://www.pentamaster-international-ltd.com

Number of Employees


Location

  • Pentamaster International Limited
  • Plot 18 & 19, Technoplex
  • Medan Bayan Lepas
  • Bayan Lepas
  • 11900
  • Malaysia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1665SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2018

Biography

Pentamaster International Limited, an investment holding company, engages in designing, manufacturing, and installing automated manufacturing solutions. The company’s Automated Equipment segment provides semiconductor electronic components testing solutions, such as microelectromechanical systems and smart sensor test handler; automated vision; and intelligent sortation system solutions for customers in the semiconductor, telecommunication, automotive, and consumer electronic sectors. This segment also offers end product test solutions that provide light-emitting diode test and burn-in handlers, light-emitting diode burn-in oven systems, wafer probing test systems, end product test systems, digital tune and test systems, and automatic leak test systems. Its Automated Manufacturing Solutions segment offers manufacturing executive system, a real time control and monitoring software platform; assembly and test modules; high-speed sorters; and material handling equipment, as well as intelligent automated robotic manufacturing system that integrates various combinations of its modules. Pentamaster International Limited serves multinational companies. It operates in the United States, Singapore, Malaysia, China, Taiwan, the Republic of Ireland, the Philippines, and internationally. The company was founded in 1995 and is headquartered in Bayan Lepas, Malaysia. Pentamaster International Limited is a subsidiary of Pentamaster Corporation Berhad. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 13:12
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.