Reported Earnings • May 09
First quarter 2026 earnings released: EPS: RM0.025 (vs RM0.018 in 1Q 2025) First quarter 2026 results: EPS: RM0.025 (up from RM0.018 in 1Q 2025). Revenue: RM180.4m (up 37% from 1Q 2025). Net income: RM17.9m (up 37% from 1Q 2025). Profit margin: 9.9% (in line with 1Q 2025). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Board Change • May 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 4 highly experienced directors. Independent & Non-Executive Director Roslinda Binti Ahmad was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 27
Pentamaster Corporation Berhad, Annual General Meeting, May 20, 2026 Pentamaster Corporation Berhad, Annual General Meeting, May 20, 2026, at 10:30 Singapore Standard Time. Location: pmt 861, persiaran cassia selatan 6, taman perindustrian batu kawan, 14110 simpang ampat, pulau pinang, Malaysia Buy Or Sell Opportunity • Apr 14
Now 21% overvalued Over the last 90 days, the stock has fallen 11% to RM3.47. The fair value is estimated to be RM2.87, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 4.2% over the last 3 years. Earnings per share has declined by 17%. For the next 3 years, revenue is forecast to grow by 13% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Reported Earnings • Feb 26
Full year 2025 earnings released: EPS: RM0.087 (vs RM0.092 in FY 2024) Full year 2025 results: EPS: RM0.087 (down from RM0.092 in FY 2024). Revenue: RM583.7m (down 6.3% from FY 2024). Net income: RM62.0m (down 5.0% from FY 2024). Profit margin: 11% (in line with FY 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 17% per year whereas the company’s share price has fallen by 13% per year. Price Target Changed • Nov 19
Price target increased by 7.3% to RM4.06 Up from RM3.79, the current price target is an average from 11 analysts. New target price is 7.7% above last closing price of RM3.77. Stock is up 6.2% over the past year. The company is forecast to post earnings per share of RM0.089 for next year compared to RM0.092 last year. Reported Earnings • Nov 07
Third quarter 2025 earnings released: EPS: RM0.024 (vs RM0.017 in 3Q 2024) Third quarter 2025 results: EPS: RM0.024 (up from RM0.017 in 3Q 2024). Revenue: RM148.1m (down 1.4% from 3Q 2024). Net income: RM17.1m (up 45% from 3Q 2024). Profit margin: 12% (up from 7.8% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. New Risk • Nov 07
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 26% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. This is currently the only risk that has been identified for the company. Buy Or Sell Opportunity • Oct 27
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 20% to RM4.24. The fair value is estimated to be RM3.52, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 11%. For the next 3 years, revenue is forecast to grow by 13% per annum. Earnings are also forecast to grow by 22% per annum over the same time period. Buy Or Sell Opportunity • Oct 07
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 23% to RM4.27. The fair value is estimated to be RM3.53, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 11%. For the next 3 years, revenue is forecast to grow by 13% per annum. Earnings are also forecast to grow by 22% per annum over the same time period. Price Target Changed • Aug 09
Price target increased by 8.3% to RM3.80 Up from RM3.51, the current price target is an average from 10 analysts. New target price is approximately in line with last closing price of RM3.69. Stock is down 17% over the past year. The company is forecast to post earnings per share of RM0.097 for next year compared to RM0.092 last year. Reported Earnings • Aug 07
Second quarter 2025 earnings released: EPS: RM0.016 (vs RM0.028 in 2Q 2024) Second quarter 2025 results: EPS: RM0.016 (down from RM0.028 in 2Q 2024). Revenue: RM144.9m (down 16% from 2Q 2024). Net income: RM11.6m (down 42% from 2Q 2024). Profit margin: 8.0% (down from 12% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Aug 06
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 38% to RM3.72. The fair value is estimated to be RM3.03, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.9% over the last 3 years. Earnings per share has declined by 5.4%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Valuation Update With 7 Day Price Move • Jul 03
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to RM3.57, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 14x in the Machinery industry in Malaysia. Negligible returns to shareholders over past three years. Simply Wall St's valuation model estimates the intrinsic value at RM2.18 per share. Major Estimate Revision • May 15
Consensus EPS estimates fall by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from RM683.6m to RM642.1m. EPS estimate also fell from RM0.119 per share to RM0.099 per share. Net income forecast to grow 24% next year vs 22% growth forecast for Machinery industry in Malaysia. Consensus price target down from RM3.53 to RM3.36. Share price rose 5.2% to RM2.84 over the past week. Reported Earnings • Apr 29
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: RM0.092 (down from RM0.13 in FY 2023). Revenue: RM623.0m (down 10.0% from FY 2023). Net income: RM65.2m (down 27% from FY 2023). Profit margin: 11% (down from 13% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 7.8%. Earnings per share (EPS) also missed analyst estimates by 21%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Price Target Changed • Apr 25
Price target decreased by 7.5% to RM3.58 Down from RM3.87, the current price target is an average from 10 analysts. New target price is 47% above last closing price of RM2.43. Stock is down 42% over the past year. The company is forecast to post earnings per share of RM0.12 for next year compared to RM0.092 last year. Announcement • Apr 24
Pentamaster Corporation Berhad, Annual General Meeting, May 23, 2025 Pentamaster Corporation Berhad, Annual General Meeting, May 23, 2025, at 10:30 Singapore Standard Time. Location: pmt 861, persiaran cassia selatan 6, taman perindustrian batu kawan, 14110 simpang ampat, pulau pinang, Malaysia New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Malaysian stocks, typically moving 8.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to RM2.50, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 17x in the Machinery industry in Malaysia. Total loss to shareholders of 31% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM3.75 per share. Buy Or Sell Opportunity • Mar 10
Now 24% undervalued after recent price drop Over the last 90 days, the stock has fallen 34% to RM2.78. The fair value is estimated to be RM3.66, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.6% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Price Target Changed • Feb 27
Price target decreased by 10% to RM4.21 Down from RM4.70, the current price target is an average from 9 analysts. New target price is 35% above last closing price of RM3.13. Stock is down 27% over the past year. The company is forecast to post earnings per share of RM0.13 for next year compared to RM0.092 last year. Reported Earnings • Feb 26
Full year 2024 earnings released: EPS: RM0.092 (vs RM0.13 in FY 2023) Full year 2024 results: EPS: RM0.092 (down from RM0.13 in FY 2023). Revenue: RM623.0m (down 10.0% from FY 2023). Net income: RM65.2m (down 27% from FY 2023). Profit margin: 11% (down from 13% in FY 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 3% per year. Buy Or Sell Opportunity • Jan 03
Now 22% undervalued Over the last 90 days, the stock has risen 13% to RM4.00. The fair value is estimated to be RM5.13, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 3.6%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings are also forecast to grow by 20% per annum over the same time period. Announcement • Jan 01
Pentamaster Corporation Berhad Receives Copy of Writ and Statement of Claim The Board of Directors of Pentamaster Corporation Berhad announced that PCB had, on 30 December 2024 received a sealed copy of Writ dated 23 December 2024 and Statement of Claim dated 23 December 2024 from Messrs Skrine, the solicitors acting for Ocado Innovation Limited, a company incorporated under the laws of the England and Wales. Ocado Innovation Limited is a wholly owned subsidiary of Ocado Group Plc. PCB is seeking the necessary legal advice to defend or striking out the Writ and Statement of Claim. Save for the legal fees to be incurred to defend or to strike out the Writ and Statement of Claim, the litigation is not expected to have any material impact on the financial position or operations of the Group. The Kuala Lumpur High Court has fixed this matter for Case Management before the Deputy Registrar on 14 January 2025. Announcement • Dec 20
Pentamaster Corporation Berhad (KLSE:PENTA), Chen Chu-Wan, Chen Hsin-Yu, Chen Hsin-Tso, MediaTek Inc. (TWSE:2454) and United Microelectronics Corporation (TWSE:2303) agreed to acquire 36.10% stake in Pentamaster International Limited (SEHK:1665) for approximately HKD 810 million. Pentamaster Corporation Berhad (KLSE:PENTA), Chen Chu-Wan, Chen Hsin-Yu, Chen Hsin-Tso, MediaTek Inc. (TWSE:2454) and United Microelectronics Corporation (TWSE:2303) agreed to acquire 36.10% stake in Pentamaster International Limited (SEHK:1665) for approximately HKD 810 million on December 19, 2024. A cash consideration valued at HKD 0.93 per share will be paid by Pentamaster Corporation Berhad, MediaTek Inc. and United Microelectronics Corporation. As part of consideration, HKD 805.8 million is paid towards common equity of Pentamaster International Limited. The transaction will be funded using internal resources. Upon completion, Pentamaster Corporation Berhad will own 71% stake in Pentamaster International Limited. The transaction is subject to approval by regulatory board / committee, approval of offer by target shareholders, subject to court approval and subject to statutory approval. The expected completion of the transaction is June 19, 2025. Altus Capital Limited acted as financial advisor for Pentamaster International Limited. Buy Or Sell Opportunity • Dec 12
Now 20% undervalued Over the last 90 days, the stock has risen 7.3% to RM4.09. The fair value is estimated to be RM5.14, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 3.6%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings are also forecast to grow by 20% per annum over the same time period. New Risk • Dec 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Malaysian stocks, typically moving 7.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Dec 04
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to RM4.00, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 24x in the Machinery industry in Malaysia. Total loss to shareholders of 26% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM5.14 per share. Major Estimate Revision • Nov 14
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from RM712.1m to RM676.1m. EPS estimate also fell from RM0.132 per share to RM0.115 per share. Net income forecast to grow 32% next year vs 17% growth forecast for Machinery industry in Malaysia. Consensus price target down from RM5.20 to RM4.60. Share price fell 6.5% to RM3.74 over the past week. Price Target Changed • Nov 11
Price target decreased by 9.0% to RM4.73 Down from RM5.20, the current price target is an average from 9 analysts. New target price is 28% above last closing price of RM3.69. Stock is down 24% over the past year. The company is forecast to post earnings per share of RM0.12 for next year compared to RM0.13 last year. Reported Earnings • Nov 08
Third quarter 2024 earnings released: EPS: RM0.017 (vs RM0.033 in 3Q 2023) Third quarter 2024 results: EPS: RM0.017 (down from RM0.033 in 3Q 2023). Revenue: RM150.2m (down 17% from 3Q 2023). Net income: RM11.8m (down 50% from 3Q 2023). Profit margin: 7.8% (down from 13% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Aug 28
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to RM3.96. The fair value is estimated to be RM5.15, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 7.2%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Reported Earnings • Aug 02
Second quarter 2024 earnings released: EPS: RM0.028 (vs RM0.033 in 2Q 2023) Second quarter 2024 results: EPS: RM0.028 (down from RM0.033 in 2Q 2023). Revenue: RM171.4m (down 3.1% from 2Q 2023). Net income: RM19.9m (down 16% from 2Q 2023). Profit margin: 12% (down from 13% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 04
Upcoming dividend of RM0.02 per share Eligible shareholders must have bought the stock before 11 July 2024. Payment date: 26 July 2024. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 0.4%. Lower than top quartile of Malaysian dividend payers (4.5%). Lower than average of industry peers (1.4%). Buy Or Sell Opportunity • Jul 01
Now 13% overvalued after recent price rise Over the last 90 days, the stock has risen 13% to RM5.02. The fair value is estimated to be RM4.43, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 8.7%. For the next 3 years, revenue is forecast to grow by 13% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Buy Or Sell Opportunity • Jun 26
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to RM4.93. The fair value is estimated to be RM4.06, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 8.7%. For the next 3 years, revenue is forecast to grow by 13% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Buy Or Sell Opportunity • Jun 10
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 16% to RM4.96. The fair value is estimated to be RM4.10, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 8.7%. For the next 3 years, revenue is forecast to grow by 13% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Announcement • Jun 08
Pentamaster Corporation Berhad Approves Final Single Tier Dividend for the Financial Year Ended 31 December 2023, Payable on July 26, 2024 Pentamaster Corporation Berhad approved the payment of a final single tier dividend of 2 sen per share for the financial year ended 31 December 2023, at the AGM held on June 7, 2024. Ex-Date is 11 July 2024. Entitlement date is 12 July 2024. Payment Date is 26 July 2024. Buy Or Sell Opportunity • May 16
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 9.4% to RM4.78. The fair value is estimated to be RM3.94, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 13%. For the next 3 years, revenue is forecast to grow by 13% per annum. Earnings are also forecast to grow by 16% per annum over the same time period. Reported Earnings • May 10
First quarter 2024 earnings released: EPS: RM2.72 (vs RM0.03 in 1Q 2023) First quarter 2024 results: EPS: RM2.72. Revenue: RM170.8m (up 3.3% from 1Q 2023). Net income: RM19.4m (down 8.9% from 1Q 2023). Profit margin: 11% (down from 13% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in Malaysia. Declared Dividend • Apr 29
Dividend of RM0.02 announced Dividend of RM0.02 is the same as last year. Ex-date: 11th July 2024 Payment date: 26th July 2024 Dividend yield will be 0.5%, which is lower than the industry average of 3.5%. Payout Ratios Payout ratio: 16%. Cash payout ratio: 15%. Announcement • Apr 28
Pentamaster Corporation Berhad, Annual General Meeting, Jun 07, 2024 Pentamaster Corporation Berhad, Annual General Meeting, Jun 07, 2024, at 10:30 Singapore Standard Time. Location: Level 4, Jadeite Function Room Amari SPICE Penang, 2, Persiaran Mahsuri,11900 Bayan Lepas, Pulau Pinang Pulau Pinang Malaysia Agenda: To discuss the Audited Financial Statements for the financial year ended 31 December 2023 together with the Reports of the Directors and Auditors thereon; to approve the payment of a final single tier dividend; to approve the payment of Directors' fees; and to discuss other matters. Price Target Changed • Mar 02
Price target decreased by 7.9% to RM5.34 Down from RM5.80, the current price target is an average from 8 analysts. New target price is 26% above last closing price of RM4.25. Stock is down 7.8% over the past year. The company is forecast to post earnings per share of RM0.15 for next year compared to RM0.13 last year. Reported Earnings • Feb 23
Full year 2023 earnings released: EPS: RM0.13 (vs RM0.12 in FY 2022) Full year 2023 results: EPS: RM0.13 (up from RM0.12 in FY 2022). Revenue: RM691.9m (up 15% from FY 2022). Net income: RM89.1m (up 8.1% from FY 2022). Profit margin: 13% (in line with FY 2022). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 03
Third quarter 2023 earnings released: EPS: RM0.033 (vs RM0.028 in 3Q 2022) Third quarter 2023 results: EPS: RM0.033 (up from RM0.028 in 3Q 2022). Revenue: RM180.7m (up 16% from 3Q 2022). Net income: RM23.5m (up 17% from 3Q 2022). Profit margin: 13% (in line with 3Q 2022). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Buying Opportunity • Nov 01
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 8.5%. The fair value is estimated to be RM6.17, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 6.1%. For the next 3 years, revenue is forecast to grow by 16% per annum. Earnings is also forecast to grow by 19% per annum over the same time period. Price Target Changed • Sep 15
Price target increased by 8.1% to RM5.82 Up from RM5.38, the current price target is an average from 10 analysts. New target price is 7.8% above last closing price of RM5.40. Stock is up 31% over the past year. The company is forecast to post earnings per share of RM0.14 for next year compared to RM0.12 last year. Announcement • Aug 13
Pentamaster Corporation Berhad Reports Write Offs Results for the Quarter Ended June 30, 2023 Pentamaster Corporation Berhad reported write offs results for the quarter ended June 30, 2023. for the quarter, the company reported Property, plant and equipment written off of MYR 4,000. Reported Earnings • Aug 11
Second quarter 2023 earnings released: EPS: RM0.033 (vs RM0.027 in 2Q 2022) Second quarter 2023 results: EPS: RM0.033 (up from RM0.027 in 2Q 2022). Revenue: RM176.9m (up 17% from 2Q 2022). Net income: RM23.7m (up 23% from 2Q 2022). Profit margin: 13% (in line with 2Q 2022). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 10% per year. Upcoming Dividend • Jul 06
Upcoming dividend of RM0.02 per share at 0.4% yield Eligible shareholders must have bought the stock before 13 July 2023. Payment date: 28 July 2023. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 0.4%. Lower than top quartile of Malaysian dividend payers (5.4%). Lower than average of industry peers (2.7%). Announcement • May 12
Pentamaster Corporation Berhad to Report Q1, 2023 Results on May 11, 2023 Pentamaster Corporation Berhad announced that they will report Q1, 2023 results at 5:00 PM, Singapore Standard Time on May 11, 2023 Reported Earnings • May 12
First quarter 2023 earnings released: EPS: RM0.03 (vs RM0.029 in 1Q 2022) First quarter 2023 results: EPS: RM0.03 (up from RM0.029 in 1Q 2022). Revenue: RM165.3m (up 13% from 1Q 2022). Net income: RM21.3m (up 4.3% from 1Q 2022). Profit margin: 13% (down from 14% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Feb 24
Full year 2022 earnings released: EPS: RM0.12 (vs RM0.10 in FY 2021) Full year 2022 results: EPS: RM0.12 (up from RM0.10 in FY 2021). Revenue: RM600.6m (up 18% from FY 2021). Net income: RM82.4m (up 13% from FY 2021). Profit margin: 14% (in line with FY 2021). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 04
Third quarter 2022 earnings released: EPS: RM0.028 (vs RM0.027 in 3Q 2021) Third quarter 2022 results: EPS: RM0.028 (up from RM0.027 in 3Q 2021). Revenue: RM155.6m (up 11% from 3Q 2021). Net income: RM20.1m (up 3.1% from 3Q 2021). Profit margin: 13% (down from 14% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Aug 13
Pentamaster Corporation Berhad to Report Q2, 2022 Results on Aug 11, 2022 Pentamaster Corporation Berhad announced that they will report Q2, 2022 results on Aug 11, 2022 Reported Earnings • Aug 13
Second quarter 2022 earnings released: EPS: RM0.027 (vs RM0.025 in 2Q 2021) Second quarter 2022 results: EPS: RM0.027 (up from RM0.025 in 2Q 2021). Revenue: RM151.3m (up 16% from 2Q 2021). Net income: RM19.2m (up 7.1% from 2Q 2021). Profit margin: 13% (down from 14% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 18%, compared to a 35% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 30
Upcoming dividend of RM0.02 per share Eligible shareholders must have bought the stock before 07 July 2022. Payment date: 22 July 2022. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 0.5%. Lower than top quartile of Malaysian dividend payers (4.9%). Lower than average of industry peers (3.0%). Announcement • Jun 02
Pentamaster Corporation Berhad Announces Final Dividend for the Financial Year Ended 31 December 2021, Payment Date Is 22 July 2022 Pentamaster Corporation Berhad announced final dividend of MYR 0.02 per share for the Financial Year Ended 31 December 2021. Ex date is 07 July 2022, Payment date is 22 July 2022. Valuation Update With 7 Day Price Move • May 19
Investor sentiment improved over the past week After last week's 19% share price gain to RM3.60, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 12x in the Machinery industry in Malaysia. Total returns to shareholders of 100% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM7.01 per share. Reported Earnings • May 13
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: RM0.029 (up from RM0.023 in 1Q 2021). Revenue: RM146.0m (up 27% from 1Q 2021). Net income: RM20.4m (up 27% from 1Q 2021). Profit margin: 14% (in line with 1Q 2021). Revenue missed analyst estimates by 5.6%. Earnings per share (EPS) also missed analyst estimates by 13%. Over the next year, revenue is forecast to grow 17%, compared to a 27% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Price Target Changed • Apr 27
Price target decreased to RM4.42 Down from RM4.78, the current price target is an average from 7 analysts. New target price is 38% above last closing price of RM3.20. Stock is down 46% over the past year. The company is forecast to post earnings per share of RM0.13 for next year compared to RM0.10 last year. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improved over the past week After last week's 17% share price gain to RM3.28, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 11x in the Machinery industry in Malaysia. Total returns to shareholders of 110% over the past three years. Major Estimate Revision • Mar 03
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from RM654.9m to RM596.8m. EPS estimate also fell from RM0.15 per share to RM0.13 per share. Net income forecast to grow 30% next year vs 24% growth forecast for Machinery industry in Malaysia. Consensus price target down from RM5.85 to RM4.78. Share price fell 10% to RM3.20 over the past week. Announcement • Mar 03
Pentamaster Corporation Berhad Announces Redesignation of Chuah Choon Bin from Non Executive Chairman to Executive Chairman Pentamaster Corporation Berhad announced Redesignation of Chuah Choon Bin from Non Executive Chairman to Executive Chairman. Reported Earnings • Feb 27
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: RM0.10 (up from RM0.10 in FY 2020). Revenue: RM508.4m (up 21% from FY 2020). Net income: RM72.7m (up 2.5% from FY 2020). Profit margin: 14% (down from 17% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 5.6%. Earnings per share (EPS) also missed analyst estimates by 13%. Over the next year, revenue is forecast to grow 18%, compared to a 27% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Feb 26
Price target decreased to RM5.35 Down from RM5.85, the current price target is an average from 7 analysts. New target price is 50% above last closing price of RM3.57. Stock is down 43% over the past year. The company is forecast to post earnings per share of RM0.12 for next year compared to RM0.10 last year. Announcement • Feb 25
Pentamaster Corporation Berhad Recommends Final Single Tier Dividend in Respect of the Financial Year Ended 31 December 2021 The Board of Directors of Pentamaster Corporation Berhad announced that it has recommended a final single tier dividend of MYR 0.02 per ordinary share amounting to approximately MYR 14.2 million in respect of the financial year ended 31 December 2021 for shareholders’ approval at the forthcoming Annual General Meeting. The entitlement date and date of payment of the dividend will be announced on a later date subject To Approve the dividend by shareholders. Major Estimate Revision • Feb 25
Consensus revenue estimates fall by 10% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from RM654.9m to RM589.1m. EPS estimate fell from RM0.15 to RM0.15 per share. Net income forecast to grow 23% next year vs 15% growth forecast for Machinery industry in Malaysia. Consensus price target down from RM5.85 to RM5.70. Share price fell 4.5% to RM3.57 over the past week. Valuation Update With 7 Day Price Move • Feb 22
Investor sentiment deteriorated over the past week After last week's 20% share price decline to RM3.23, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 16x in the Machinery industry in Malaysia. Total returns to shareholders of 115% over the past three years. Reported Earnings • Aug 15
Second quarter 2021 earnings released: EPS RM0.025 (vs RM0.024 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: RM130.6m (up 27% from 2Q 2020). Net income: RM17.9m (up 5.5% from 2Q 2020). Profit margin: 14% (down from 17% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 60% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jul 08
Upcoming dividend of RM0.015 per share Eligible shareholders must have bought the stock before 15 July 2021. Payment date: 30 July 2021. Trailing yield: 0.3%. Lower than top quartile of Malaysian dividend payers (4.1%). Lower than average of industry peers (1.1%). Price Target Changed • May 13
Price target decreased to RM6.31 Down from RM6.97, the current price target is an average from 5 analysts. New target price is 34% above last closing price of RM4.70. Stock is up 63% over the past year. Reported Earnings • May 08
First quarter 2021 earnings released: EPS RM0.023 (vs RM0.024 in 1Q 2020) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2021 results: Revenue: RM115.2m (up 15% from 1Q 2020). Net income: RM16.1m (down 4.2% from 1Q 2020). Profit margin: 14% (down from 17% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 77% per year, which means it is tracking significantly ahead of earnings growth.