OCK

Final Verdict

OCK Group is navigating a transitional period. The annual data shows a business that expanded rapidly, then hit a revenue ceiling and saw profitability erode. However, the latest quarterly data offers a credible turnaround story with sequential margin and earnings improvement. Investors should look for confirmation in the upcoming annual report for FY2026 (ending June 2026) – specifically, whether the Q2/Q3 FY2026 improvements translate into full-year growth and better interest coverage. For now, the trend is cautiously positive but with lingering concerns over debt and minority interests.

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Over the last five fiscal years (FY2021 to FY2025), OCK Group's financial trajectory has revealed a clear two-phase pattern: a robust post-COVID recovery followed by a period of stagnation and margin pressure. 

After impressive revenue growth of 26.4% in FY2022 and 17.1% in FY2023, driven by its core telecommunications network services and tower leasing business, the company's top line contracted by 10.0% in FY2024 and a further 0.8% in FY2025 to RM645.1 million. This decline, particularly the sharp drop in FY2024, was primarily attributed to sluggish performance in the Telecommunication Network Services (TNS) segment following the completion of major projects like Malaysia's first 5G network (NW1) and JENDELA Phase 1. The impact on profitability was more pronounced, with net income falling 18.8% year-on-year in FY2025 to RM26.8 million, and net margins compressing to a five-year low of 4.15%. High depreciation and amortization charges (averaging over RM100 million annually), a persistent and elevated interest expense (MYR 34.3 million in FY2025), and significant minority interest deductions (averaging ~30% of net income) have consistently weighed on the bottom line, reflecting the capital-intensive nature of its regional tower business. 

However, the latest five quarters (from Q4 FY2025 ending June 2025 to Q3 FY2026 ending March 2026) indicate a strong recovery. 

After a low point, the company has posted two consecutive quarters of sequential growth, with Q3 FY2026 revenue reaching RM174.7 million and net profit surging 104.5% year-on-year to RM11.25 million. This turnaround is fueled by a rebound in the TNS segment from new fiberisation and 5G in-building projects, and a surge in contributions from the power solutions and data centre-related activities, pushing gross profit margins to a quarterly high of 29.1% in Q3 FY2026. 

Looking forward, OCK is strategically positioned to benefit from several catalysts, including the upcoming JENDELA Phase 2, its collaboration with U Mobile for the second 5G network roll-out (NW2), and the separate ACE Market listing of its energy solutions arm, EI Power Bhd, which is expected to unlock value despite initial earnings dilution. With a growing outstanding order book (RM757 million as of end-April 2026), a massive tender book (RM2.1 billion), and approval for a transfer to Bursa Malaysia's Main Market, OCK appears to be transitioning back into a growth phase from its recent consolidation. While risks remain, including execution challenges and high leverage, the improved operational momentum and new project pipeline suggest a more positive outlook ahead

Pentamaster

Final Comment:

Pentamaster appears to have bottomed in early 2025 and is now in a recovery phase. The annual 2025 results were weak, but quarterly trends through Q1 2026 are encouraging. Investors should watch for:

• Full-year 2026 guidance from management

• Whether the Q4 2025 gross margin expansion is sustainable or a one-off

• Reduction in D&A growth or stabilization of capex

The stock’s valuation will depend on whether this recovery translates into sustainable double-digit net income growth after two years of declines. The current run-rate suggests 2026 net income could recover to MYR 70–80 million, still below 2023’s MYR 89 million peak.

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Overview of Pentamaster's Business and Operational Context

Pentamaster Corporation Berhad is a Malaysia-based automation manufacturing and technology solutions provider, operating primarily through two core segments: Automated Test Equipment (ATE) and Factory Automation Solutions (FAS), with a smaller Smart Control Solution Systems segment and a newly established healthcare operation. The ATE segment focuses on designing and manufacturing standard and non-standard automated testing equipment for industries including automotive, semiconductor and electro-optical applications, while the FAS segment provides customised robotics manufacturing systems and integrated automation solutions. Pentamaster's highest-ever revenue and profit were achieved in 2023, after which the company entered a cyclical downturn before staging a recovery beginning in late 2025.

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Five-Year Annual Income Statement Analysis (2021–2025)

Revenue Performance: A Clear Peak-and-Decline Cycle

Pentamaster's five-year revenue trajectory tells a story of post-COVID recovery followed by two consecutive years of contraction. Revenue grew from MYR 508.4 million in 2021 to MYR 600.6 million in 2022 (up 18.1%), reaching a peak of MYR 691.9 million in 2023 (up 15.2%). However, 2024 saw revenue decline by 10.0% to MYR 623.0 million, followed by a further 6.3% drop in 2025 to MYR 583.7 million. This decline has been attributed to softer demand across key end-markets, particularly an automotive slowdown that began impacting results in 2024 and continued into 2025.

Profitability: Margins Proving Remarkably Resilient Despite Revenue Declines

Despite the challenging top-line environment, Pentamaster's gross profit margin has remained relatively stable throughout the five-year period. Gross margin stood at approximately 30.0% in 2021 and 2023, moderated slightly to 28.7% in 2024 before recovering to 29.4% in 2025. Similarly, EBITDA margin expanded from 20.6% in 2021 to 22.6% in 2023, contracted to 19.9% in 2024, and recovered to 21.5% in 2025. This resilience suggests that management has successfully controlled direct costs even as revenue has fallen, maintaining operational discipline through the downturn.

Net income performance, however, tells a more challenging story. Net profit after minority interest peaked at MYR 89.1 million in 2023, then fell 26.8% to MYR 65.2 million in 2024, and declined a further 5.0% to MYR 62.0 million in 2025. The sharp 27% decline in net income in 2024 was disproportionately severe relative to the 10% revenue drop, indicating significant margin compression or one-off cost pressures during that year. Basic earnings per share followed a similar path: MYR 0.10 in 2021, MYR 0.12 in 2022, MYR 0.13 in 2023, and then MYR 0.09 in both 2024 and 2025.

Expenses and Non-Operating Items: Areas of Concern

Two expense trends warrant particular attention. Depreciation and amortisation expense has risen sharply from MYR 17.5 million in 2023 to MYR 21.4 million in 2024 and further to MYR 28.2 million in 2025 — a 61% increase over just two years. This reflects significant recent capital expenditure, likely related to the completion of Campus 3 and other capacity expansion initiatives that management has indicated should start generating returns in 2026.

Non-operating income and expense has also been highly volatile, swinging from a positive contribution of MYR 27.4 million in 2021 to a negative MYR 17.4 million in 2023, MYR 5.2 million negative in 2024, and MYR 12.6 million negative in 2025. This volatility introduces significant unpredictability into reported earnings, making underlying operating performance difficult to assess from headline net income figures alone.

Minority Interest: A Persistent Drag on Shareholder Returns

An important but often overlooked feature of Pentamaster's financial structure is the substantial minority interest expense. Consolidated net income for the group was MYR 90.7 million in 2025, but after deducting minority interests of MYR 28.8 million, net income attributable to ordinary shareholders was only MYR 62.0 million. This pattern has persisted throughout the five-year period, with minority interest typically representing 28% to 38% of consolidated net income. Core shareholders thus capture only a portion of the group's operational earnings.

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Latest Five Quarters Income Statement Analysis (Q1 2025 – Q1 2026)

Revenue Recovery: Four Consecutive Quarters of Sequential Growth

The quarterly data reveals a clear turnaround that is not yet visible in the full-year annual figures. Starting from a trough of MYR 131.6 million in Q1 2025, revenue has risen sequentially for four consecutive quarters. Q2 2025 revenue reached MYR 144.9 million (up 10.1% QoQ), followed by MYR 148.1 million in Q3 2025 (up 2.2% QoQ) and MYR 159.1 million in Q4 2025 (up 7.5% QoQ). The recovery accelerated significantly in Q1 2026, with revenue surging 13.4% to MYR 180.4 million — the highest quarterly revenue achieved in over two years.

The Q1 2026 revenue increase of 37% year-on-year was primarily driven by the Factory Automation Solutions segment, where revenue more than doubled from a year earlier, led by stronger project deliveries related to smartphone assembly and testing applications for a major customer. In contrast, the ATE segment revenue declined nearly 9% year-on-year due to lower contributions from higher-margin automotive and electro-optical segments.

Profitability Volatility and the Healthcare Segment Challenge

Despite strong revenue growth, profitability trends have been more uneven. Net income improved from MYR 13.1 million in Q1 2025 to MYR 20.2 million in Q4 2025, with net margins expanding from 9.9% to 12.7% over that period. However, Q1 2026 net income of MYR 17.9 million fell short of Q4 2025 levels despite higher revenue, with the net margin retracing to 9.9%.

The primary drag on profitability in Q1 2026 was the newly commercialised healthcare segment, which manufactures single-use medical devices and incurred losses due to high fixed costs during its early-stage commercialisation phase. Management has guided that the healthcare segment is likely to remain loss-making throughout 2026, requiring annual revenue of approximately MYR 50 million to cover operating costs of MYR 30 million per year before achieving breakeven in 2027.

Acknowledged Reporting Anomaly in Q4 2025

The quarterly data contains a clear reporting anomaly: Q4 2025 EBITDA is shown as MYR 4.97 billion and SG&A as a negative MYR 4.90 billion, neither of which is plausible given the company's annual revenue of approximately MYR 583 million. The net income figure of MYR 20.2 million (reflecting a 12.7% net margin) is, however, consistent with the company's typical margin profile and should be considered the reliable metric for that quarter.

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Outlook and Forward-Looking Commentary

Order Book Strength and Strategic Pivot

Pentamaster's order book has strengthened considerably, rising from RM400 million in Q2 2025 to RM450 million in Q3 2025 and further to RM480 million in Q1 2026. The order book is now predominantly driven by the FAS segment, which makes up 84% of the total, with medical end-markets contributing 55% and consumer/industrial applications contributing 24%.

Management has indicated that the group expects to achieve double-digit revenue growth in 2026, with revenue potentially exceeding the RM700 million mark, supported by the RM400 million order backlog scheduled for delivery in the first half of 2026. The group is strategically pivoting from the cooling electric vehicle market—which is expected to drop from approximately 40% of revenue in 2025 to just 10% in 2026—toward factory automation, medical applications, AI servers (targeting 15% of revenue) and advanced chip packaging (targeting 10% of revenue).

Analyst Views and Risk Factors

Kenanga Research expects Pentamaster's financial year 2026 to remain anchored by FAS, with the segment expected to contribute over 50% of revenue, while the ATE segment could benefit from AI and high-performance computing demand and the commercialisation of its "9 Samurai" advanced packaging projects. However, near-term earnings face pressure from the weaker ATE segment performance in Q1 2026 and ongoing losses from the healthcare segment, which have led several research houses to downgrade their calls to "hold".

Additional risks include the expiry of pioneer status for a key subsidiary on 31 March 2026, with a new application pending review by MIDA, which could affect future tax expenses, and the ongoing patent dispute with Ocado Innovation Limited, although management does not expect a material financial impact.

Concluding Assessment

Pentamaster has navigated a challenging two-year cyclical downturn with notable operational discipline, maintaining gross margins around 29% despite consecutive revenue declines. The company now appears to be firmly in a recovery phase, supported by a strengthening order book, strategic reorientation away from the struggling EV market, and the completion of a RM300 million capital expenditure programme that management expects to begin generating returns in 2026. The key risks to monitor are the pace at which the healthcare segment reaches breakeven, the successful commercialisation of the advanced packaging product suite, and the resolution of the tax incentive renewal. For investors, the trajectory remains one of cautious optimism — the recovery is real and well-supported, but full-year 2026 profitability will be heavily influenced by factors outside the company's immediate control, including global semiconductor demand and the timing of project deliveries across its diverse end-markets.

TESCO, UK

Conclusion

Over the past five years, Tesco has demonstrated resilient revenue growth, a strong recovery in profitability following a difficult 2023, and consistent share‑buyback‑driven EPS growth. The company’s strategic focus on value leadership, cost efficiency, and retail media monetisation has enabled it to gain market share even in a challenging environment.

The most recent quarterly data shows that revenue continues to grow, but profitability is under pressure from cost inflation and unusual items. Looking ahead, the key questions will be whether Tesco can sustain its gross margin above 7.0%, how quickly its retail media business can scale, and whether the macro environment cooperates. If the strategic pivot to data and media succeeds, Tesco could increasingly be viewed not just as a grocer, but as a higher‑margin, data‑driven retail platform — a transition that could support continued earnings growth and multiple expansion.

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Over the past five fiscal years, Tesco has demonstrated a consistent and impressive upward trajectory in its top-line performance, with revenue growing from £61.34 billion in 2022 to a record £73.71 billion in 2026. This growth, averaging around 4-5% annually, reflects the success of its strategic focus on value leadership, particularly the expansion of its 'Aldi Price Match' and 'Clubcard Prices' initiatives, which have resonated strongly with consumers during the cost-of-living crisis. Consequently, Tesco's UK market share reached its highest point in a decade at 28.5% in 2026.

The financial health of the business, however, is more nuanced. While the top line has grown, its Gross Profit as a percentage of sales has shown volatility. It fell sharply from 7.65% in 2022 to a low of around 5% in 2023 before staging a significant recovery in 2024 and 2025, only to slip slightly from 7.57% to 7.25% in 2026. This recent dip suggests that although consumers are spending more, inflationary pressures on Tesco’s input costs may be intensifying, potentially squeezing per-unit profitability. The company's ability to manage costs is further reflected in its Operating Profit, which has climbed steadily to £3.09 billion in 2026 from £2.87 billion in 2022, indicating that its efficiency programs are helping to offset some of these cost pressures.

The journey to Net Profit has been bumpy, heavily influenced by one-off or 'unusual' items. For instance, a massive £943 million 'unusual expense' in 2023 crushed that year's Net Income to just £737 million. Similarly, the 2025 results were impacted by a £373 million unusual expense, while a £145 million expense in 2026 suggests a pattern of periodic restructuring. Despite these non-cash adjustments, the underlying business is healthy, as evidenced by the strong growth in Earnings Per Share (EPS). Basic EPS has risen from 19.34p in 2022 to 27.5p in 2026, partially driven by aggressive share buybacks that have reduced the total number of shares outstanding by over 1.1 billion during this period.

Looking at the latest five quarters, a slightly different picture emerges. Revenue has been remarkably consistent, sitting at around £17.4 billion in the first two quarters and rising to £18.84 billion in the final two quarters of 2026. However, the company's net profitability has been far from linear. Net income saw a significant drop from a high of £525.5 million in Q2 of 2024 to just £287.5 million in Q1 of 2025, only to jump back up to £475 million in Q2 of 2025. This extreme quarter-to-quarter volatility points to the ongoing presence of large non-recurring items or strategic decisions, including potentially aggressive asset write-downs or complex accounting adjustments related to discontinued operations.

In summary, the data portrays a company successfully expanding its market share and top line, with an underlying business that is profitable and a management team using share buybacks to reward shareholders. Nonetheless, this success is punctuated by volatile bottom-line results, driven by a pattern of significant periodic charges that obscure the operational cash-generating strength of the core grocery business.

Johnson & Johnson

Conclusion

Johnson & Johnson has successfully transitioned from a diversified healthcare conglomerate to a focused Pharmaceutical and MedTech pure-play. The Kenvue separation, while causing short-term EPS volatility, has streamlined the business and improved profitability. The company is currently delivering:

• Stable 6-7% organic revenue growth;

• Expanding operating and EBITDA margins (despite some gross margin pressure);

• Strong double-digit adjusted EPS growth;

• A healthy balance sheet with a manageable interest burden.

However, investors should be aware of the one-time items that can cause significant earnings volatility on a reported basis, and should focus on adjusted earnings for a true picture of operating performance. The Q1 2026 results suggest the momentum is continuing into 2026, albeit with some headwinds from interest costs and litigation expenses.

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Looking across Johnson & Johnson's income statements over the past five years, a clear story of strategic transformation and resilient growth emerges. The most significant factor in interpreting these trends is the separation of its Consumer Health business into an independent company, Kenvue, which was completed in August 2023. Since then, J&J has focused exclusively on its two core pillars: Innovative Medicine (primarily pharmaceuticals) and MedTech (medical devices). This structural change is why 2021-2022 revenues appear much larger in the table: those years included the consumer division, which was later removed and reported as "Discontinued Operations." From 2023 onward, the presented "Sales/Revenue" figures represent this streamlined, higher-margin entity.

On a continuing operations basis, Johnson & Johnson has demonstrated consistent, if unspectacular, growth. Revenues increased from approximately $85.2 billion in 2023 to $94.2 billion in 2025, representing a compound annual growth rate (CAGR) in the low-to-mid single digits. This expansion has been driven by the company's powerful oncology franchise, led by Darzalex, a multiple myeloma drug that alone generated over $14 billion in sales in 2025, rising 22%. This growth has been strong enough to offset the loss of exclusivity (LOE) for former blockbuster Stelara, which began to impact 2025 results. The MedTech segment has also been a reliable contributor, posting organic sales growth of 4.3% for the full year 2025 and strong performances in cardiovascular surgery.

The focus on these high-margin segments has a direct and positive impact on J&J's profitability. Over the five-year period, the company has consistently maintained a gross profit margin between 67% and 69%, showcasing its strong pricing power and efficient cost management. More notably, the operating leverage inherent in its business is evident in the growth of EBIT and EBITDA, which have risen faster than revenue. The surge in Pretax Income and Net Income in 2025 to $32.6 billion and $26.8 billion, respectively, represents a dramatic 95% and 90% year-over-year growth. While this is partly attributable to a favorable swing in unusual expenses (likely one-time gains or litigation reserve releases), the underlying business is clearly firing on all cylinders, as reflected in the net margin jumping to 28.46% in 2025, up from 15.8% the year before. This improved profitability translated directly to shareholders, with diluted EPS rising from $5.79 in 2024 to $11.03 in 2025.

This momentum has continued into the most recent reporting period. In the first quarter of 2026, J&J reported a **9.9% increase in sales to $24.1 billion**, though net earnings of $5.2 billion were significantly lower than the $11.0 billion reported in the same quarter of 2025 due to the one-off items that had inflated that previous quarter. Looking at the quarterly trend throughout 2025, revenues climbed steadily from $21.9 billion in Q1 to $24.6 billion in Q4, demonstrating strong sequential growth and a robust end to the year. However, the quarterly data also reveals some noise in gross margins, which have fluctuated between 66.8% and 69.7%, and in SG&A expenses, which saw a notable spike in Q4 2025 before normalizing in Q1 2026. These variations are often typical for large multinationals and can be attributed to factors like product mix, marketing campaigns, and the timing of R&D investments.

Looking forward, Johnson & Johnson's management has expressed confidence in the company's trajectory. The 2026 outlook is optimistic, with revenue guidance raised to a range of $100.3 billion to $101.3 billion and adjusted EPS guidance raised to $11.45-$11.65. This confidence is rooted in the expectation that growth will accelerate in both the Innovative Medicine and MedTech segments. In summary, J&J has successfully navigated a major corporate restructuring and is now a more focused, profitable, and growth-oriented company. While historical comparisons are complicated by the Kenvue spin-off, the recent annual and quarterly results clearly paint a picture of a healthcare giant effectively leveraging its strongest divisions to deliver robust shareholder value and a promising outlook.

Supermax income statements: 5 Year Analysis (2021 to Q3 2026)

Supermax's financial journey over the past five fiscal years (2021–2025) and into the latest quarters of 2026 tells the stark story of a company that soared to pandemic-era heights before being pulled down by a severe industry-wide oversupply and is now engaged in a costly, high-stakes global restructuring to navigate the new normal.

📈 The Five-Year Annual Analysis: From a Pandemic Boom to a Market Bust

Supermax's financial story is one of a dramatic reversal driven by the pandemic cycle. The company reached its zenith in fiscal year 2021, where the surge in global demand for personal protective equipment (PPE) drove revenue to an astronomical RM7.16 billion, accompanied by a staggering net income of RM3.82 billion and an extraordinary net profit margin of 53.3%. This peak quickly subsided, however, as the world began to normalize. Revenue began a multi-year collapse, falling by 62.5% in FY2022 to RM2.69 billion, and then further contracting by 69.4% in FY2023 to just RM821 million. This steep decline was due to plummeting glove prices as demand eased and the market became flooded with excess capacity from various manufacturers. The brutal impact on profitability was immediate; the company swung from huge annual profits to a net loss of RM141 million in FY2023, marking the beginning of a loss-making period that has persisted into subsequent years. The financials have not yet recovered. While revenue showed a slight rebound in FY2024 (RM646 million) and FY2025 (RM780 million), this was largely a result of low-base effects following the sharp declines of the prior two years. Throughout this period, the company has remained firmly in the red, reporting net losses of RM176 million in FY2024 and RM145 million in FY2025. These losses have been consistently driven by an industry-wide oversupply that has kept average selling prices suppressed, a situation exacerbated by a strong Malaysian Ringgit which negatively affected the value of its US dollar-denominated export sales.

📉 The Latest Five Quarters: A Strategy of Pain for Long-Term Gain

The most recent quarterly data, covering the period from Q4 FY2025 to Q3 FY2026, paints a picture of a company in a deep restructuring phase rather than merely reacting to market conditions. The negative trend has continued, with net losses of RM67 million, RM135 million, RM58 million, and RM41 million reported sequentially. While quarterly revenue has fluctuated between RM126 million and RM206 million, the consistent net losses indicate that the financial bleeding has yet to be fully stemmed. However, the underlying reasons for these ongoing losses have shifted. In the first quarter of FY2026, for example, a significant portion of the RM134.6 million net loss was a strategic, non-cash write-down of RM119.5 million related to the impairment of non-productive plants and slow-moving inventory, a clear move by management to "prune" older, inefficient assets and clean up its balance sheet. This has been part of a broader strategy to rationalize its Malaysian manufacturing base by investing in automation and robotics to improve long-term cost efficiency.

A central factor in the ongoing losses has been the substantial financial strain from starting up its new, highly automated manufacturing facility in Texas, USA. This ambitious US$1.6 billion project, announced in late 2021, is designed to be a key strategic advantage, allowing Supermax to circumvent the heavy import tariffs imposed on Chinese-made gloves and serve the world's largest healthcare market as a domestic supplier. However, the ramp-up has been slow and expensive; the plant was running at just 12.5% of its planned capacity as of early 2026, leading to structurally higher operating costs compared to its Malaysian peers. This financial drag has contributed to what has now become 15 consecutive quarters of net losses for the group since the second quarter of FY2023.

Looking ahead, management has expressed confidence in a turnaround, eyeing the second half of 2026 for a return to profitability. They are banking on the completion of validation for the Texas plant to unlock larger contracts, coupled with an optimistic outlook for higher average selling prices. To further diversify its global footprint, the company also announced a US$50 million investment to build a 2.4 billion-piece glove manufacturing facility in Brazil to tap into the growing South American healthcare market. However, sell-side analysts remain cautious, with most forecasting that losses will persist through at least FY2027. While the company is undertaking a bold, foundational restructuring, significant headwinds remain. The structural imbalance of global supply and demand is expected to only begin to correct in 2027 at the earliest. Until the Texas plant can achieve commercial scale and the industry-wide inventory destocking is complete, the full benefits of Supermax's costly pivot will likely remain on the horizon.