RHB Investment Bank Bhd (RHB Research) maintained its BUY call on Pentamaster Corp with a higher target price of RM6.32 from RM5.04, implying 10.7% upside, as it expects the group’s record RM550 million outstanding orderbook to support stronger earnings in 2H26 and beyond.
The 1H26 revenue jumped 30.6% year-on-year to RM361.2 million while core profit attributable to owners was broadly flat at RM29 million, accounting for 36% of RHB Research’s full-year forecast. The research house said the results were in line with expectations given the stronger second-half outlook.
Factory automation solutions revenue surged 112% year-on-year, driven by demand from AI computing, electro-optical, consumer and industrial products. Meanwhile, automated test equipment revenue fell 24.8% due mainly to weaker contributions from electro-optical, automotive and semiconductor segments.
RHB Research said the orderbook, which rose 15% quarter-on-quarter to a multi-year high, is now split between medical at 50%, AI computing at 30%, electro-optical at 3% and other applications. Pentamaster’s healthcare business also recorded revenue of RM20 million, up from RM1 million a year earlier, although it remained loss-making as volumes have yet to reach sufficient scale.
The research house raised its FY27 and FY28 earnings forecasts by 25% and 13% respectively, citing the stronger orderbook, improved margin assumptions and an expected healthcare breakeven. It expects growth to be supported by AI-driven automation, silicon carbide wafer burn-in solutions and advanced packaging test solutions.
As of 11 am, the stock price drops 4.38% to RM5.46.
