GEORGE TOWN: Pentamaster Corp Bhd
’s test equipment for the smartphone industry is gradually making a comeback with improving orders from customers.
Group executive chairman Datuk Chuah Choon Bin told StarBiz that the smartphone segment demand slowed significantly two years ago, reducing smart devices’ contribution to the group’s revenue to less than 10%.
“Since late last year, orders for bespoke test equipment used for checking smartphone optical sensors have improved due to the entry of new models into the market.
“We expect the smartphone industry to generate over 10% of our revenue in 2025,” Chuah said.
Chuah added global smartphone sell-through grew year-on-year (y-o-y) for the third consecutive quarter in the second quarter (2Q24), continuing its recovery from the weakest year in a decade.
“Smartphone sell-through grew 6% y-o-y in 2Q24, the highest y-o-y growth since 2Q21. Almost all regions showed y-o-y growth,” he said.
According to Counterpoint Research, a leading global technology research firm, the European and Latin American (LATAM) markets grew the fastest in 2Q24, recording high double-digit y-o-y growth numbers, as consumer sentiment and purchasing activity continued to improve compared to 2023.
In China, Huawei’s comeback and an early start to the 618 shopping festival ensured the continuation of gradual recovery. 618 is the second largest and most important Shopping Festival in China.
Held every year from June 1st till June 18th, China’s eCommerce landscape is filled with large-scale promotional activities and discounts on the hottest products of the moment.
Counterpoint Research said emerging markets performed better than mature markets, especially LATAM and Asia.
According to Chuah, the medical industry’s orders for the group’s factory automation solutions remain firm and steady.
“The orders from the electric vehicle industry, however, are flat,” he said.
The group still has about RM400mil worth of test equipment to deliver to customers before 2024 ends.
Chuah added the group’s new RM300mil plant would start operating in late 2024.
“The plant will produce factory-automated solutions for the medical technology industry,” he said.
“Malaysia is hosting the Asian Medtech 2024 in Kuala Lumpur in December this year to attract medical investments into the country that will help support the growth of local medical device companies,” he said.
According to a Fortune Business Insights report, the global medical devices market, valued at US$518.46bil in 2023, is projected to grow from US$542.21bil in 2024 to US$886.8bil by 2032, exhibiting a compound annual growth rate of 6.3% during the forecast period.
North America dominated the global market with a share of 38.16% in 2023.
“The growing patient population suffering from chronic diseases such as cancer and diabetes, along with rising awareness regarding the treatment options among these patients, is leading to an increasing number of patients undergoing diagnostic and surgical procedures.
“The rising number of surgical procedures, including orthopaedic, cardiac, neurological and others globally, is expected to contribute to the growing medical devices market size,” the report said.
Pentamaster is particularly optimistic about artificial intelligence’s (AI) increasingly important role in expanding cloud and data centres, creating significant opportunities for the demand for the group’s test equipment used in advanced semiconductor packaging.
The global semiconductor industry is demonstrating its solid fundamentals and growth potential supporting the diverse range of disruptive applications emerging from the AI wave.
The semiconductor test equipment segment is likely to rise 7.4% in 2024, while assembly and packaging equipment sales by 10% for the same period.
Chuah added the momentum would continue into 2025 due to increased demand for advanced logic and memory applications.
For the six months of the 2024 financial year ended June 30, Pentamaster posted earnings of RM61.9mil on the back of RM342.1mil in turnover.
