Pentamaster executive chairman Chuah Choon Bin
GEORGE TOWN: Pentamaster Corp Bhd
has a backlog of orders worth over RM400mil to be delivered by the first quarter of 2025.
Group executive chairman Datuk Chuah Choon Bin said the orders comprise automated test equipment and factory automation solutions (FAS) used in the electric vehicle (EV) and medical technology industries.“The orders will be delivered in the second half of 2024 and the first quarter of 2025,” he said.
“Because of the oversupply of EVs, global economic downturn and growing competition among EV-related test equipment and electronic components, we need to enhance our value and remain price competitive in the market,” Chuah told StarBiz.
He said the 2024 financial year is expected to be flat compared with 2023, due to the global economic slowdown.
The group is optimistic that business should pick up in the second half of 2024.
“While there’s a contraction in orders in the first quarter, we are optimistic that the demand for high-performance semiconductor devices used in artificial intelligence products, new data centres and innovative automotive products will gradually recover in the second half.
“As it is, the medical devices segment still forms the largest share in the group’s current order book and the revenue momentum, followed by contributions from the automotive segment, owing to its diversification strategy,” Chuah added.
According to Grandview Research, the global medical automation market, valued at US$44.44bil in 2022, is expected to show a 9.04% compound annual growth rate (CAGR) from 2023 to 2030.
Key factors driving the market are pharmaceutical companies’ adoption of automated instruments, the rise in the need for miniaturisation, and technological advancements coupled with the rise in demand for robot-assisted surgeries, according to the report.
Chuah added that the group’s RM300mil plant would start operating in late 2024.
“The plant will produce FAS for the medical technology industry,” he said.
Chuah said the demand for carbon-emission-free vehicles was gaining the attention of global economies, adding that multiple government incentives, subsidies and tax benefits were driving the overall sales growth for e-mobility.
“The global electric mobility market size is projected to grow to US$1.5 trillion in 2028, representing a 27% compound annual growth rate in 2021-2028, which will drive the demand and capital expenditure for the device and equipment markets supporting the overall EV market,” he said.
According to Chuah, the group will drive growth by capitalising on the production of innovative test equipment used in artificial intelligence (AI) and renewable energy technologies.
“The growing demand for AI and renewable energy machines will require demanding test specifications for high power and high current functionality tests.
“We will broaden our range of products to meet this rising demand,” he added.
For the first quarter ended March 31, 2024, the group posted a net profit of RM30.2mil on the back of RM170.7mil in revenue, compared with RM33mil in net profit and RM165.3mil in revenue registered for the same period a year ago.
