KUALA LUMPUR: Pentamaster Corp Bhd is poised for stronger earnings ahead, supported by a near-record RM520 million orderbook driven by demand for artificial intelligence (AI) computing and medical equipment, said RHB Research.
The orderbook, comprising 45 per cent medical equipment, 30 per cent AI computing, 10 per cent consumer and industrial products, and 15 per cent other segments, provides earnings visibility for the fourth quarter of 2026 and financial year 2027.
Pentamaster is also expanding its Campus 3 facilities by bringing an additional 120,000 square feet of unused space into operation to support future manufacturing activities.
RHB Research said demand for sophisticated AI and high-performance computing testing was expected to support the group’s advanced packaging test solutions under its “9 Samurai” initiative into financial year 2027.
The group has also secured a new tax incentive covering 70 per cent of statutory income from its advanced packaging and advanced photonics equipment under the automated test equipment segment.
However, the research house trimmed its financial year 2026 earnings forecast by nine per cent to account for a higher assumed effective tax rate, while leaving its financial year 2027 and 2028 projections unchanged.
It maintained its “Buy” recommendation on Pentamaster with an unchanged target price of RM6.32.
For the nine months ended September 2026, Pentamaster’s core net profit rose 10.1 per cent year-on-year to RM49.2 million, while revenue increased 37.9 per cent to RM585.3 million.
Despite the growth, earnings fell short of expectations, mainly due to a higher-than-expected effective tax rate.
The group’s factory automated solutions segment remained its main growth driver, with third-quarter revenue surging 72.3 per cent year-on-year to RM171.6 million, accounting for 63 per cent of total quarterly revenue.
Meanwhile, its automated test equipment segment recorded revenue growth of 30.7 per cent to RM50.6 million, with electro-optical solutions contributing 23 per cent and AI compute solutions accounting for five per cent.
Healthcare revenue, however, contracted 39 per cent year-on-year to RM5.9 million, reflecting lower medical device sales.