充满挑战的经营环境

Pentamaster Corporation Berhad|7160.KL COMPANY UPDATE Challenging operating environment H F NGO, Brian, CFA SENIOR ANALYSTbrianngo@westbullsec.com.hk+8523896 29652701–2703,27/F, Infinitus Plaza, 199 Des Voeux RdCentral, Sheung Wan, HK STOCK RATING HOLD Pentamaster Corporation Berhad(7160.KL)delivered a subdued performance in 1H 2025,with revenue declining 19.2%YoY to MYR 276.5mn.While Q2 2025 showed marginalimprovement, the FAS segment experienced a dramatic 51.4% YoY decline,primarily drivenby reduced project deliveries within the medical segment. Conversely, the ATE segmentdemonstrated resilience with a 25.2% YoY rebound, supported by strong performance in theElectro-Optical and Semiconductor segments.Gross margin compressed to 26.8% due tothe smaller business scale of the FAS segment,both ATE and FAS segments reported similarmargin profiles in 1H 2025 Pentamaster Corporation Berhad (7160.KL) Stock RatingHOLD(BUY)Target PriceMYR 3.69(MYR 3.85)Current PriceMYR3.7052-Week RangeMYR1.86–4.62Market cap. (MYR, bn)MYR2.6 Growth normalization of theMedical segment:TheMedical segment's contribution declinedsubstantially due to the project cycle of the primary customer, arebound may be realizedin2H 2025,according tothelatestdelivery schedule.Besides,potential new orders fromexisting customersshould partially offsetthe impactsofthemajorproject completion. Sustainedmomentum in theElectro-Optical andConsumer &Industrialsegments:TheElectro-Optical segment delivered robust 12.3%YoYgrowth in 1H 2025, benefiting fromupgraded ambient light sensors and proximity sensors in smartphones and wearable devices.We may see stronger momentum next year due toafurther upgradeofthe sensors in thenew product line.Besides,the Consumer & Industrial segment surged 120.3%YoY, driven byonshoring activities and data center expansion. Remaining cautious in the Automotivesegment:The automotive segment reported amarginal 0.2% YoY decline despite strong NEV sales momentum in 1H 2025. However, theUS tariffs on vehicles and broadertrade tensions continue to create uncertainty forautomotive OEMs,and potential impacts and uncertainties have resulted in cautiouscustomer order placementbehaviour. Challenging operating environment:Given the challenging operating environment andtempered near-term prospects,we anticipate a moderatedecline in FY 2025 performance,and we have revised our estimates accordingly.New order momentummayoffsettheimpacts of major customer project completions, leading tomild growth in FY 2026.We,thus,revisethe rating to“HOLD”with a TP of MYR 3.69 per share. Peers comparison Risk factors ◼Persistent automotive sector weakness due to tariff uncertainties◼Continued macroeconomic volatilityaffectscapital investment decisions◼New orders from themedical customers are notasmeaningful as expected◼A change in the schedule ofthenew product line of the smartphone customer Financial Statement West Bull Securities is a dedicated small/mid cap stock brokerage house. Find our research on: Alphasense, FactSet, Capital IQ,Refinitiv, Wind, Choice, Hibor,同花順and發現報告. Ratings of West Bull Securities: STRONGBUY:absoluteupside of >50% over the next 12 monthsBUY:absoluteupside of >10% over the next12monthsHOLD: absolute return of-10% to +10% over the next 12 monthsSELL: absolute downside of >10% over the next 12 monthsSTRONGSELL: absolute downside of >50% over the next 12 months Investors should assume that West Bull Securities is seeking or will seek investment banking or other related businesses withthecompanies in this report. Analyst certification:The views expressed in this report accurately reflect the analyst’s personal views of the subject securities andthat the analyst has not received and will not receive direct or indirect compensation in exchange for expressing specificrecommendations or views in this report. Disclaimer: This research report is not an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The securities referredto in this report may not be eligible for sale in some jurisdictions. The information contained in this report has been compiled bythe Research Department of West Bull Securities Limited (‘West Bull Securities’) from sources that it believes to be reliablebut norepresentation, warranty or guarantee is made or given by West Bull Securities Securities or any other person as to its accuracy orcompleteness. All opinions and estimates expressed in this report are (unless otherwise indicated) entirely those of West BullSecurities as of the date of this report only and are subject to change without notice. Neither West Bull Securities nor any otherperson,accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwisearising in connection therewith. Each recipient of this report shall be solely responsible for making its own independent investigationof the business, financial condition and prospects of the companies re