KUALA LUMPUR: Pentamaster Corp Bhd is set to record annual double-digit earnings growth in 2021, spurred by an order intake momentum on the back of improving sentiment for the equipment market.

       In a report yesterday, UOB Kay Hian expected the Penang-based semiconductor equipment vendor and automation house to register a 20% earnings growth for 2021.

       “The year 2020 was a washout period for the group due to the worldwide travel restrictions, alongside the movement control order disruptions in Malaysia.

       “We believe the worst could have been fully captured in the past few quarters, with the group gradually resuming cross-border travel for its project site installation on a more constrained basis.”

       Pentamaster has been experiencing an order intake momentum on the back of improving sentiment since early 2021, according to UOB Kay Hian.

       “Its latest order book backlog is higher than RM270mil, which is more than 35% higher than the normal range last year. The momentum is expected to pick up further from here on.”

       UOB Kay Hian said Pentamaster is well-positioned to ride on the long-term structural growth from high-growth sectors.

       “The group is undergoing a high-growth phase with its structurally well-diversified revenue exposure in the electro-optical and automobile segments.

       “With the prevalence of optoelectronics and 3D-sensing technology further compounded by the pandemic, the group’s core products and solutions that cater for a wide range of smart sensors will become increasingly important to its customers.”

       Despite the global chip shortage, which is having an impact on the automotive industry, UOB Kay Hian said there is still potential for structural growth with the proliferation of electric vehicles and autonomous driving.

       “Given Pentamaster’s current exposure and product portfolio encompassing a diverse area of the automobile test solution from front-end to back-end, the group will be able to play a dominant role in this ecosystem.

       “For the medical segment, the group is making progress in the prototyping stage of single-use medical devices like intravenous catheters and pen needles.”

       For the nine-month period ended Sept 30, 2021, Pentamaster’s revenue surged 25% year-on-year, driven by higher sales from the electro-optical and semiconductor segments.

       Meanwhile, sales within the group’s automotive segment had also picked up, mainly through the delivery of its integrated power module test handling equipment in the third quarter.