PETALING JAYA: Pentamaster Corp Bhd
’s growth prospects for this year are expected to be mixed, with performance increasingly anchored by its factory automation solutions (FAS) segment, even as its healthcare arm continues to weigh on earnings.
According to Phillip Capital Research, the company’s management expects FAS to contribute approximately 60% of 2026 revenue, underpinned by growing traction from the medical as well as consumer and industrial markets.
“The current order book stands at RM480mil, with FAS making up 84% of the total, driven by the medical (55%) and consumer/industrial (24%) end-markets,” the research house said in a post-first quarter of financial year 2026 briefing.
Meanwhile, it further noted that the automated test equipment (ATE) segment accounted for the remaining 15%, supported by the automotive end-market and other applications.
“The healthcare segment is anticipated to continue facing near-term challenges, with management guiding for losses to persist through 2026 before achieving breakeven in 2027.
“Management indicated that the segment would require an annual revenue of RM50mil to cover its operating cost of RM30mil per year,” the research house said.
As for its long-term growth trajectory, this is expected to be supported by the gradual commercialisation of its long-awaited “9 Samurai” product suite.
To date, at least four of the nine products have progressed into prototype delivery or early-stage commercial shipments.
“Among these, management highlighted Maison and Zan-X as the two near-term earnings drivers, both benefitting from a shortage of offerings in their respective markets.
“On the electro-optical ATE side, management continues to expect order flows to materialise in the second half of financial year 2026, though repeat orders have seen some pushback amid ongoing memory supply constraints.”
Separately, Pentamaster’s management has submitted applications to renew its pioneer status for both the ATE and FAS segments, following the expiry of previous incentives in April.
Given the near-term uncertainty surrounding the healthcare segment’s profitability, the research house reiterated its “hold” rating and 12-month target price of RM4.10 on the stock.
This was based on a target 31 times price-earnings multiple on 2027 earnings per share.
