Investment Rating - The report assigns a "BUY" rating to Pentamaster (01665.HK) with a target price of HK$ 0.95 [2][3]. Core Insights - Pentamaster's performance in the first half of 2024 was sluggish, with revenue remaining flat at MYR 342.1 million compared to the previous year. The ATE segment saw a significant decline of 45.1% year-on-year, while the FAS segment experienced a growth of 1.4 times [3]. - The gross margin decreased due to R&D expenses and reduced economies of scale in the ATE segment, leading to a year-on-year decline in the bottom line of 12.8% for 2024 1H and 13.5% for Q2 [3]. - The medical segment showed stable contributions from a major customer, generating MYR 155.5 million, which provides a decent outlook despite downward adjustments in forecasts [3]. - The report expresses concerns about the recovery of other segments, particularly the semiconductor and automotive segments, which saw declines of 63.2% and 51.8% year-on-year, respectively, in Q2 [3]. - The report indicates that recovery is delayed due to macroeconomic issues, but maintains a long-term positive outlook due to potential drivers like KGD testers and single-use medical devices expected in FY 2025 [3]. Financial Overview - For 2024, revenue is projected to be MYR 738.8 million, with a year-on-year growth of 6.8%. The gross profit is expected to be MYR 212.0 million, with a gross margin of 28.7% [9]. - The net profit for 2024 is estimated at MYR 131.8 million, reflecting a year-on-year decline of 7.3% [9]. - The financial ratios indicate a gross margin of 30.3% for 2023, with a projected decrease to 28.7% in 2024 [11]. Peer Comparison - Pentamaster's market capitalization is approximately HKD 1.6 billion, with a P/E ratio of 6.7 and a forward P/E of 5.1. The average gross margin among peers is 39.0% [6].
槟杰科达：Recovery is delayed due to macro issues