PETALING JAYA: Pentamaster Corp Bhd
’s outlook is set to strengthen, supported by firmer order‑replenishment momentum in its medical and emerging artificial‑intelligence (AI) computing divisions, analysts say.
Phillip Capital Research said its recent second quarter of financial year 2026 (2Q26) results briefing left it more upbeat on Pentamaster Corp’s earnings trajectory, even though much of the valuation upside appears to be already reflected in the share price.
The factory automation solutions (FAS) division makes up 89% of the group’s RM550mil order book, driven primarily by medical (50%), AI compute (30%) and consumer/industrial (9%) demand.
The automated test equipment (ATE) segment accounts for the remaining 11%, supported by automotive (7%) and other niche applications (4%).
In addition, the group’s healthcare revenue rose from RM1mil in 1Q26 to RM21mil in 2Q26, driven by its subsidiary Mirak Medica Sdn Bhd’s collaboration with government hospitals.
According to Phillip Capital Research, Pentamaster’s management expects the current quarterly run rate to be sustainable, which, together with an annual operating cost base of about RM30mil guided during the 1Q26 briefing.
“This leads us to expect the segment to reach breakeven by 4Q26, ahead of its earlier guidance for profitability in 2027,” the research house added.
Meanwhile, the “9 Samurai” remains Pentamaster’s primary growth driver for 2027, which is now categorised under the AI compute segment.
Two of the nine products have progressed into mass production and three products are undergoing customer validation.
Phillip Capital Research also said management now provided clearer average selling price guidance of US 80 cents to US$2mil as orders firm up, with around 40 units order to be delivered through 2026 and 2027 and RM70mil to RM80mil of that contributing in 2026.
AI compute is guided to contribute 20% to 26% of 2026 revenue, scaling to 50% in 2027 as the 9 Samurai commercialises.
On tax, ATE’s pioneer status has been approved, while the FAS application remains ongoing, with the interim offset by capital allowances.
With stronger growth prospects, the research house raised its FY27 net profit forecast by 20% to RM112mil.
It lifted the stock’s target price to RM5.60, while maintaining a “market perform” call.
