KUALA LUMPUR (May 10): Phillip Capital has maintained its “buy” rating on Pentamaster Corp Bhd (KL:PENTA) at RM4.44 with a higher target price of RM6.23 (from RM5.65) and said Pentamaster’s first quarter of 2024 (1Q2024) core net profit of RM24 million was in line with its and consensus forecasts.
In a note on Friday, the research house said the improved year-on-year earnings were driven by stronger medical (+287%) and electro-optical (+71%) revenue growth.
“We expect stronger factory automation solution medical segment growth will drive earnings momentum in 2024.
“We believe Pentamaster remains a good proxy for riding the secular growth opportunities in the EV (electric vehicle) segment, supported by its specialty in the insulated-gate bipolar transistor (IGBT) and silicon carbide (SiC) offerings.
“Key risks include prolonged market recovery and any customer order delays,” it said.
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Pentamaster’s 1Q earnings fell 8.9% amid lower contributions from automated test equipment