31-07-2025
Pantech to focus on advanced technology
TA Research has made no changes to its earnings forecast.
PETALING JAYA: Pantech Group Holdings Bhd 's growth prospects are supported by its ongoing investments in its manufacturing arm.
TA Research, in a report, said the group is upgrading its Klang plant in Selangor with a focus on automation and advanced machinery to enhance production efficiency and reduce dependency on manual labour.
The key initiatives include replacing induction components in forming machines, installing a digitalised high-frequency induction long bend machine.
It is also expanding computer numerical control machining capacity, all of which are expected to strengthen operational capabilities and support long-term growth.
While external challenges such as Section 232 tariffs and foreign exchange volatility persist, Pantech's diversified exposure across sectors, including petrochemicals, palm oil, water treatment and shipbuilding would provide a buffer.
Its strong manufacturing base and long-standing customer relationships enhance resilience in an uncertain macro environment.
TA Research has made no changes to its earnings forecast after the group released its financial results.
It reiterated a 'buy' call with an unchanged target price of 96 sen a share based on a seven-time 2026 earnings per share.
For its first quarter of the financial year 2026 (1Q26), Pantech reported core net profit of RM23mil.
This was within TA Research's and consensus expectations at 21% of the full year estimates.
Core net profit excludes a one-off Real Property Gains Tax of RM3.76mil arising from the completion of two properties disposed of by a subsidiary to Pantech Global Group.
The group proposed a special interim dividend of two sen per share with the option to reinvest into new Pantech Group shares under dividend reinvestment plan, which will be made at a later date.
Its profit before tax decreased by 30.9% year-on-year, primarily impacted by the weak performance from both the trading and manufacturing divisions.
