PETALING JAYA: Pantech Group Holdings Bhd
is expected to sustain its earnings growth over the coming quarters, supported by a recovery in domestic oil and gas (O&G) activities and resilient export demand.
Analysts remain positive on the group’s outlook, citing improving orders, higher average selling prices (ASPs) and better manufacturing efficiency as key earnings drivers.
Phillip Capital Research said Pantech’s core net profit for the first half ended Aug 31, 2026 rose 36% year-on-year to RM38mil, coming in within its and market expectations. The earnings accounted for 48% and 51% of its and consensus full-year forecasts, respectively.
Looking ahead, the research house expects Pantech’s earnings momentum to continue into the third quarter ending Nov 30, 2026, supported by stronger domestic O&G activities and steady export demand.
“Higher ASPs and sustained manufacturing utilisation should also support earnings, although the pace of margin expansion will depend on product mix and cost movements,” it said.
Similarly, TA Research expects Pantech’s earnings to improve over the next 18 months, driven by stronger order replenishment and a gradual recovery in domestic O&G activities.
It said higher enquiry levels and a firmer order pipeline pointed to an improving demand environment, broadly in line with Petroliam Nasional Bhd’s or PETRONAS Activity Outlook 2026 to 2028.
“We expect higher ASPs and better order conversion to support progressive earnings growth through financial year ending Feb 28, 2027 (FY27) to FY28,” TA Research said in a report.
It also expects Pantech’s margins to remain “resilient”, supported by the group’s ability to pass on higher input costs through pricing adjustments and ongoing productivity improvements.
The research house noted that while elevated raw material and conversion costs remained key concerns, stable input prices and pricing discipline should help preserve profitability.
Continued automation and operational efficiencies are also expected to provide further support to margins, according to the research house
“Overall, we believe sustained demand, effective cost management and improved operating leverage will underpin Pantech’s earnings growth over the medium term.”
TA Research made no changes to its earnings forecasts and maintained a “buy” call on Pantech, with an unchanged target price of 70 sen.
Phillip Capital also maintained its “buy” recommendation and target price of 83 sen, based on eight times its FY28 earnings per share estimate.
