Pentamaster (17.8.2017)

Pentamaster
17.8.2017

INCOME STATEMENT
Thousands
Year …. 2016 …. 2015 …. 2014 …. 2013 …. 2012
Revenues …. 151,939 …. 83,604 …. 81,047 …. 67,344 …. 56,896
GProf …. 47,868 …. 23,831 …. 20,845 …. 11,788 …. 9,472
EBIT …. 27,514 …. 11,640 …. 5,759 …. 28 …. (3,979)
Int Exp …. 94 …. 10 …. 258 …. 358 …. 566
PBT …. 28,838 …. 14,682 …. 7,352 …. 3,918 …. (2,083)
PAT …. 27,028 …. 11,953 …. 4,531 …. 2,385 …. (1,333)
No of shr (Dil) …. 144,072 …. 133,265 …. 133,243 …. 133,243 …. 133,243
EPS (Dil) …. 0.19 …. 0.09 …. 0.03 …. 0.02 …. -0.01


GP Marg …. 31.51% …. 28.50% …. 25.72% …. 17.50% …. 16.65%
PBT Marg …. 18.98% …. 17.56% …. 9.07% …. 5.82% …. -3.66%
NP Marg …. 17.79% …. 14.30% …. 5.59% …. 3.54% …. -2.34%
EBIT/Int …. 293.64 …. 1187.73 …. 22.31 …. 0.08 …. -7.03



BALANCE SHEET
Thousands.
Year …. 2016 …. 2015 …. 2014 …. 2013 …. 2012
CA …. 94,749 …. 43,656 …. 43,563 …. 35,579 …. 36,774
NCA …. 48,723 …. 52,899 …. 46,490 …. 51,294 …. 56,757
TA …. 143,471 …. 96,555 …. 90,053 …. 86,873 …. 93,531


CL …. 30,578 …. 14,927 …. 22,845 …. 24,483 …. 31,299
NCL …. 269 …. 2,646 …. 4,266 …. 3,129 …. 2,591
TL …. 30,847 …. 17,573 …. 27,111 …. 27,612 …. 33,890
Eq …. 112,174 …. 77,851 …. 62,942 …. 56,879 …. 54,067
TL+Eq …. 143,471 …. 96,555 …. 90,053 …. 86,873 …. 93,531



Cash …. 33,406 …. 15,388 …. 10,359 …. 4,899 …. 5,112
ST Debt …. 178 …. 101 …. 132 …. 6,507 …. 10,642
LT Debt …. 269 …. 141 …. 57 …. 188 …. -
Total Debt …. 447 …. 243 …. 188 …. 6,695 …. #VALUE!

Inventories …. 17,617 …. 6,543 …. 11,105 …. 10,738 …. 11,085
AR …. 41,530 …. 20,784 …. 20,387 …. 18,790 …. 19,942
AP …. 10,279 …. 4,521 …. 9,601 …. 10,465 …. 15,671


TD/Eq …. 0.4% …. 0.3% …. 0.3% …. 11.8% …. #VALUE!
TD/TA …. 0.3% …. 0.3% …. 0.2% …. 7.7% …. #VALUE!
TL/TA …. 21.5% …. 18.2% …. 30.1% …. 31.8% …. 36.2%

CR …. 3.10 …. 2.92 …. 1.91 …. 1.45 …. 1.17
QR …. 2.52 …. 2.49 …. 1.42 …. 1.01 …. 0.82



CE …. 146,300 …. 97,016 …. 77,568 …. 67,289 …. 67,344

Average of 2 years
CE (Avg) …. 121,658 …. 87,292 …. 72,428 …. 67,316 ….
TA (Avg) …. 120,013 …. 93,304 …. 88,463 …. 90,202 ….
Eq (Avg) …. 95,013 …. 70,396 …. 59,910 …. 55,473 ….






CASH FLOW STATEMENT
(thousand)
Year …. 2016 …. 2015 …. 2014 …. 2013 …. 2012
Net Inc …. 28,838 …. 14,682 …. 7,352 …. 3,918 …. (2,083)
D&A …. 8,356 …. 4,436 …. 3,928 …. 6,315 …. 5,545
FFO …. 35,899 …. 13,454 …. 11,127 …. 6,314 …. 4,784
CWC …. (17,999) …. (5,405) …. 913 …. (771) …. (8,571)
NetOCF …. 17,899 …. 8,050 …. 12,040 …. 5,543 …. (3,787)

Capex …. (4,288) …. (3,790) …. (2,125) …. (1,787) …. (65)

FCF …. 14,084 …. 4,969 …. 11,632 …. 5,314 …. (3,852)
Dividends …. - …. - …. - …. - …. -
RE …. 28,838 …. 14,682 …. 7,352 …. 3,918 …. (2,083)


NetOCF/Net Inc …. 62.1% …. 54.8% …. 163.8% …. 141.5% …. 181.8%
FCF/Net Inc …. 48.8% …. 33.8% …. 158.2% …. 135.6% …. 184.9%
Capex/Net Inc …. 14.9% …. 25.8% …. 28.9% …. 45.6% …. -3.1%
Capex/NetOCF …. 24.0% …. 47.1% …. 17.7% …. 32.2% …. -1.7%
DPO ratio …. 0.0% …. 0.0% …. 0.0% …. 0.0% …. 0.0%
Capex/D&A …. 51.3% …. 85.4% …. 54.1% …. 28.3% …. 1.2%



VALUATION
Year …. 2016 …. 2015 …. 2014 …. 2013 …. 2012
Share Price RM …. 1.35 …. 0.72 …. 0.375 …. 0.215 …. 0.20
Market cap (m) …. 194.5 …. 96.0 …. 50.0 …. 28.6 …. 26.6

ROCE …. 22.6% …. 13.3% …. 8.0% …. 0.0% ….
ROA …. 22.5% …. 12.8% …. 5.1% …. 2.6% ….
ROE …. 28.4% …. 17.0% …. 7.6% …. 4.3% ….

FCF/Revenues …. 9.3% …. 5.9% …. 14.4% …. 7.9% …. -6.8%

FCF/Mkt Cap …. 7.2% …. 5.2% …. 23.3% …. 18.5% …. -14.5%
DY …. 0.0% …. 0.0% …. 0.0% …. 0.0% …. 0.0%

Today's Price RM …. 4.78
Market cap (m) today …. 688.7

Semicon support firms upbeat

Saturday, 23 April 2016

BY DAVID TAN

Eye for detail: Chuah checking out test equipment produced for the automotive and semiconductor industries.

Strong sales seen for second quarter after a slow first quarter

THE semiconductor test and vision inspection equipment makers in the country are projecting a strong second quarter of 2016, following a slow first quarter, in line with the projection of SEMI South-East Asia.

The companies expecting a strong second quarter are 

• MMS Ventures Bhd, 
• Pentamaster Corp Bhd, 
• Elsoft Research Bhd and 
• Vitrox Corp Bhd.

MMS Ventures expects to deliver test equipment for the automotive and smart device industries with a market value of RM16mil in the second quarter compared with RM11mil from the same period last year.

“Both the automotive and smart device industries contribute 60% to group revenue.

“As for the third and fourth quarters, there is no visibility yet, because orders usually come in three months before the delivery.

“We should see orders for the third quarter arriving in May. The test equipment would need to be shipped out by August and September,” its managing director T.K. Sia says.

Pentamaster Corp Bhd executive chairman C.B. Chuah says the group would deliver approximately RM40mil of test equipment in the second quarter of 2016.

“About 30% of the test equipment are for the automotive segment, while the remaining for the smart devices.

“We are projecting a double digit percentage growth for our revenue and bottomline in 2016,” he adds.

In the first quarter 2016, the group delivered about RM30mil of test equipment, according to Chuah.

In the second quarter, Elsoft Research expects to deliver 40 units of test equipment priced between US$100,000 and US$200,000 per unit for customers in the automotive, smart devices, and general lighting segments.

“The customers are in Malaysia, Thailand, China, and Taiwan.

“There is no visibility yet for the second half,” says Elsoft chief executive officer C.E. Tan.

Vitrox Corp chief executive officer Chu Jenn Weng, meanwhile, says that the second quarter is expected to improve over the same period of a year ago.

“We had a very good first quarter 2016, even though the first period is traditionally a soft quarter.

“For this reason, we are confident of a good second quarter compared to last year’s second period.

“As of now, we have more than RM25mil worth of backlog orders for vision inspection equipment to be delivered in the second quarter,” he adds.

SEMI South-East Asia has recently forecast that the capital expenditure for the fab equipment manufacturing sector in South-East Asia would grow to US$1.8bil (RM7bil) in 2016 from US$1bil (RM3.9bil) in 2015.

Its president Ng Kai Fai says this would have a positive impact on the test equipment industry in South-East Asia.

“The capital expenditure for the test equipment sector in South-East Asia is projected to increase to US$580mil in 2016 from US$530mil, creating spill-over effects for the test-equipment and the electronic manufacturing cluster in Penang,” Ng explains.

SEMI is the global industry association serving the manufacturing supply chain for the micro- and nano-electronics industries.

The Free Industrial Zone, Penang, Companies’ Association (Frepenca) chairman Dr Roland Mueller says that based on the members feedback obtained in the first quarter of 2016, some 57% of the members expect results to improve in the second half of 2016.

“This is an improvement over the survey done in the fourth quarter 2015 which showed that 36% of the members were optimistic of achieving better results in the second half of 2016,” Mueller says.

However, the overall prevailing mood in the semiconductor and electronics industry is still cautious, Mueller says.

“The first quarter survey also showed that some 57% of the members have indicated that they do not plan to engage new workers and may also reduce the size of the workforce this year, compared to 43% of the members with plans to engage new headcount in 2016.

“The percentage of members with plans to introduce new products in 2016 have also dropped slightly to 71% from the 73% surveyed in the fourth quarter 2015.

“Those with plans to invest fresh capital to adopt new technologies this year have also declined slightly to 70%.

“In the fourth quarter 2015, some 75% indicated that they were keen to adopt innovative technologies with new capital investments,” Mueller says.

The recent ban on foreign workers into Malaysia is one of the reasons for the prevailing cautious mood of the manufacturing industry, according to Mueller.

“The manufacturing sector, across the board, is very dependent on foreign workers.

“If there is a shortage of foreign workers, our members would not be able to plan for expansion.

“This is why there are some members who have indicated that they may cut down the size of their investments in Malaysia and relocate to neighbouring countries, in light of the shortage,” he adds.

The Frepenca companies, comprising 70 local firms and multinational corporations from the United States and Europe, are involved in the semiconductor and electronics industries.

Read more at http://www.thestar.com.my/business/business-news/2016/04/23/semicon-support-firms-upbeat/#X0rY0bC8U9UFqOoJ.99

Pentamaster to gain RM19mil from sale of 7.4% in PIL

Monday, 17 July 2017 | MYT 11:51 PM

BY M. HAFIDZ MAHPAR

Pentamaster's technicians working on test equipment for the automotive and semiconductor industries.

KUALA LUMPUR: Pentamaster Corp Bhd, which seeks to list its automated solution business in Hong Kong held under holding company Pentamaster International Ltd (PIL), is selling a 7.4% stake in PIL to GEMS Opportunities Ltd Partnership for RM25.5mil.

In a filing with Bursa Malaysia, Pentamaster said it stood to gain RM19.08mil from selling the equity interest in newly-incorporated PIL to GEMS, a Singapore-based private equity fund.

Pentamaster had on Monday signed agreements to transfer its entire equity interest in three wholly-owned subsidiaries involved in the automated solution business to PIL and, afterwards, to sell 7.4% equity interest in PIL to GEMS for RM25.5mil in cash.

It said the internal reorganisation would lead to a more efficient group structure separating PCB’s existing automated solution business and its other smart control solution system business.

Besides for raising funds, Pentamaster said its proposed disposal of PIL shares  to GEMS would broaden PIL’s shareholder base by exposing it to international institutional investors.

It added that GEMS’ positioning as strategic investor of PIL, coupled with fund manager GEMS Capital Pte Ltd’s extensive investment experience and network, would add value to the proposed listing.

On the use of the RM25.5mil proceeds, Pentamaster said the bulk  - RM15mil - would go towards paying the listing expenses while RM7.5mil would be for repaying bank borrowings.

Read more at http://www.thestar.com.my/business/business-news/2017/07/17/pentamaster-to-gain-rm19mil-from-sale-of-7pt4pc-in-pil/#g33v34aCfpeWtZwb.99



==============

Tuesday, 13 June 2017 | MYT 8:59 PM

Pentamaster eyes HK listing of automated solution business

BY M. HAFIDZ MAHPAR

Pentamaster technicians working on test equipment to be used in the automotive and semiconductor industries.

KUALA LUMPUR: Pentamaster Corp Bhd is pursuing a separate listing for its automated solution business in Hong Kong.

In a filing with Bursa Malaysia, the company said it had appointed advisers for the purpose of listing the business on the main board of the Stock Exchange of Hong Kong Ltd, including financial advisory firm Altus Capital Ltd as the sponsor.

It said the automated solution business would gain recognition and corporate stature through having its own listing status, hence allowing it to expand of its customer base.

The proposed listing is also expected to enhance efficiency by way of promoting a clearer segregation of business responsibilities and operations for Pentamaster’s existing automated solution business, thereby enabling the respective management teams to focus on opportunities specific to each of the automated solution business.

Pentamaster said the proposed exercise would also unlock shareholders’ value and provide the company and its automated solution business with a diverse fund-raising platform in the future.

The group has three operating segments: 

• automated equipment (its biggest revenue and profit contributor), 
• automated manufacturing solution, and 
• smart control solution system.

“Prior to the completion of the proposed listing, Pentamaster will undertake a reorganisation of its subsidiaries involved in the automated solution business and these subsidiaries will continue to remain as its subsidiaries on completion of the proposed listing,” the company said.

It said a detailed announcement would be made in due course after it had finalised and approved the structure of the proposed listing.

To facilitate the proposed listing, Pentamaster has applied to incorporate a wholly-owned subsidiary in the Cayman Islands, namely Pentamaster International Ltd (PIL), on Monday. PIL’s principal activity is that of investment holding.

Pentamaster said the board wished to highlight to its shareholders that the proposed listing was at a preliminary stage and fairly extensive preparatory work was required and that such preparatory work might involve an uncertain time frame.

“Shareholders should note that the proposed listing may or may not materialise,” it said.

The company noted that the exercise was subject to, among others, satisfactory due diligence and assessment of suitability for listing by the Hong Kong sponsor and other professional advisers, approvals being obtained from the relevant authorities in Hong Kong and Malaysia (where required), as well as the shareholders at an EGM to be convened.

In addition, the proposed listing depends on assessment of other factors such as general economic and capital market conditions.

Read more at http://www.thestar.com.my/business/business-news/2017/06/13/pentamaster-eyes-hk-listing-of-automated-solution-business/#q53CLJCbpykejAmc.99

Pentamaster bullish on operations in first half 2017

Monday, 9 January 2017

BY DAVID TAN

Sales seen to exceed figure achieved in same period last year

GEORGE TOWN: Semiconductor test-equipment Pentamaster Corp Bhd expects its sales for the first half of 2017 to exceed the figure it had achieved in the same period last year.

Group executive chairman C.B. Chuah told StarBiz that the group was confident of achieving more than RM70mil worth of sales for the first half of 2017.

“So far, we have locked in about RM40mil sales for the first of 2017, which is more than half of what we achieved in the same period of 2016.

“The demand for testers should remain strong until the second half, as there will be an increase in the number of new smart telecommunication products in the market.

“The new smart products would require testers to check their sensors,” he added.

Chuah said about half of the orders for the first half of 2017 were for the smart device industry, while the automotive industry generated the demand for the remainder.

The semiconductor test-equipment is expected to contribute about 60% of the group’s revenue.

This year, the group will focus on expanding its intelligent automated robotic manufacturing line business (IARM), which is expected to contribute about 15% to revenue, compared to about 5% previously.

“Companies in Malaysia looking to replace skilled workers are our main customers.

“The IARM is growing due to the interest to replace workers where high-precision engineering and fabrication skills are involved,” he added.

On the group’s new RM25mil plant in Batu Kawan, Chuah said construction work for the 100,000-sq-ft facility would begin in the second half of 2017.

“We plan to start operations mid-2018 to produce IARM line. The group develops its own software for the IARM line. The plant will also manufacture medical washers for the export market.

“The medical washers are used for cleaning of essential hospital equipments such as wheel chairs and walking sticks” he added.

According to a Transparency Market Research report, the artificial intelligence is a fast-emerging technology, dealing with development and study of intelligent machines and software.

This software is being used across various applications such as

• manufacturing (assembly line robots), 
• medical research and 
• speech recognition systems.

“It also enables in-build software or machines to operate like human beings, thereby allowing devices to collect, analyse data, reason, talk, make decisions and act,” the report said.

“The global artificial intelligence market was valued at US$126.24bil in 2015 and is forecast to grow at a compounded annual growth rate of 36.1% from 2016 to 2024 to reach a value of US$3,061.35bil in 2024,” it added.

Read more at http://www.thestar.com.my/business/business-news/2017/01/09/pentamaster-bullish-on-operations-in-first-half-2017/#Mg5k6rlruUKG01I8.99