PETALING JAYA: Pantech Group Bhd is expected to deliver stronger earnings in the coming quarters, supported by resilient export demand, higher selling prices and improving domestic oil and gas (O&G) activities, while growing data centre (DC)-related opportunities could provide an additional boost to its prospects.
The company’s manufacturing margins are also expected to improve as favourable product pricing and automation gains support profitability, alongside a growing pipeline of trading projects.
Phillip Capital Research, which maintains a positive outlook on the company’s earnings recovery, expects Pantech to record stronger second-quarter financial year 2027 (2Q27) earnings on a quarter-on-quarter (q-o-q) and year-on-year (y-o-y) basis.
“We expect Pantech to deliver stronger 2Q27 earnings q-o-q and y-o-y, driven by sustained export demand and improving domestic O&G activities,” it said.
“In the manufacturing division, US demand remains firm on the back of industrial infrastructure and DC projects, while higher average selling prices should further lift earnings.”
It noted the group’s plants continue to run at above 90% utilisation, while order lead times have extended to 90 days for stainless steel and 180 days for carbon steel products (from an average of 45 days in financial year 2026), reflecting a healthy order pipeline.
Meanwhile, the trading division is expected to benefit from onshore gas pipeline replacement works and new DC projects, supported by an order book exceeding RM100mil in July 2026.
The research house forecasts core net profit of RM19mil to RM22mil for 2Q27, against RM17mil in 1Q27 and RM13mil in 2Q26.
Phillip Capital reiterated a “buy” rating on Pantech with a 12-month target price of 83 sen.
