KUALA LUMPUR (May 9): Semiconductor services firm Pentamaster Corporation Bhd [KL:PENTA] reported an 8.92% year-on-year (y-o-y) decline in its net profit for the first quarter of 2024 (1QFY2024) as slightly higher revenue was impacted by lower other income and share of loss of associates.
Net profit for the 1QFY2024 fell to RM19.37 million or 2.72 sen per share, down 8.92% from RM21.27 million or 2.99 sen per share in the same period last year, Pentamaster’s bourse filing showed.
Revenue, otherwise, rose by 3.32% y-o-y to RM170.79 million, up from RM165.31 million which Pentamaster attributed to higher revenue contribution from its factory automation solutions (FAS) segment which amounted to RM98.75 million, and the smart control solution system, which contributed RM476,000.
For the quarter under review, the FAS segment registered a significant growth of 69.4%, with revenue rising to RM98.75 million in 1QFY2024 up from RM58.3 million in 1QFY2023. This growth was driven by the performance of its medical devices segment.
Notably, the revenue contribution from its automated test equipment saw a major decline by RM38.2 million to RM73.2 million in 1QFY2024 from RM111.4 million in the previous corresponding quarter.
Pentamaster said the decline was due to economic turbulence and uncertain recovery of supply chain disruptions besides slower-than-expected demand recovery in the inventory normalisation rate in 1QFY2024.
Looking ahead, Pentamaster plans to focus its resources on product development and talent upskilling to prepare for a new cyclical upswing in the technology market, with a particular focus on artificial intelligence, automotive and medical devices.
The group said it remains optimistic amid the emergence of new compound and high-performance semiconductor devices required in generative artificial intelligence, data centers, and automotive segments, which may benefit the company.
Pentamaster’s shares closed unchanged at RM1.21 on Thursday, translating into a market capitalisation of RM816.84 million.