Pentamaster rises on earnings, industry outlook – Pentamaster
Summary
Year-to-date (YTD), the automation manufacturer and technology provider’s share price has gained 79.8% or RM1.46 in value to close at RM3.28 last Friday, giving it a market capitalisation of RM1.56 billion. In 2018, the company posted a 58.8% year-on-year (YoY) jump in net profit to RM57.12 million on improved operating efficiency and a higher revenue base. Pentamaster, alongside other technology hardware firms, are export-oriented companies and any deterioration in global trade would adversely impact demand for their products and services. Affin Hwang Investment Bank Bhd senior director and head of equity capital markets Arvin Chia said these tech-related stocks were impacted by the global sell-off sparked by the re-escalation of trade fears. This is partly attributable to its well-diversified income base which covers a wide range of sectors, including semiconductors, computers, automotive, electrical and electronics, pharmaceutical, medical devices, food and beverage and consumer goods.