Latest news with #PentamasterCorporationBerhad
BusinessToday
10-07-2025
- Business
- BusinessToday
Stock Today: Pentamaster Dips 2.6% Amid Global Tariff Uncertainty
As of 12.05pm on 8 July, shares in Pentamaster Corporation Berhad closed down RM0.09 or 2.62% at RM3.34, with trading volume totalling approximately 1.176 million units. This decline follows a broader sell-off in technology and export-driven stocks on concerns over fresh US tariff measures targeting Malaysian goods. Earlier this July, US President Trump announced a 25% tariff on imports from Malaysia, later clarified to exempt semiconductor hardware but still raising investor caution. While Malaysia's tech sector has seen renewed interest, particularly from companies benefiting from China‑plus‑one supply chain diversification, Pentamaster has not been spared from the risk-off sentiment sweeping global markets. Fundamentally, Pentamaster posted a one-third drop in net profit to RM13.07 million for the first quarter ended March 31 2025, on a 23% fall in revenue attributable to weaker orders in its factory automation segment. This reflects broader caution among clients, with some delaying capital investments in light of geopolitical and tariff uncertainties. Yet there is a silver lining. The company revealed plans to enter the advanced packaging and testing segment for AI chips, investing 5–10% of annual revenue in R&D, with products expected to launch in early 2026. This strategic pivot positions Pentamaster to capitalise on the region's growth in semiconductor equipment. Analysts have also highlighted that Malaysia's position as a beneficiary of shifts away from China could support tech stocks longer term if trade tensions ease. Should the tariff landscape stabilise, particularly with ongoing trade negotiations, Pentamaster may regain investor confidence by delivering its new AI‑chip packaging proposition. For now, the market remains cautious, weighing near‑term revenue pressures against the company's medium‑term pivot into high‑growth tech segments. Related
Yahoo
29-04-2025
- Business
- Yahoo
Pentamaster Corporation Berhad Full Year 2024 Earnings: Misses Expectations
Revenue: RM623.0m (down 10.0% from FY 2023). Net income: RM65.2m (down 27% from FY 2023). Profit margin: 11% (down from 13% in FY 2023). The decrease in margin was driven by lower revenue. EPS: RM0.092 (down from RM0.13 in FY 2023). Our free stock report includes 1 warning sign investors should be aware of before investing in Pentamaster Corporation Berhad. Read for free now. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue missed analyst estimates by 7.8%. Earnings per share (EPS) also missed analyst estimates by 21%. Looking ahead, revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in Malaysia. Performance of the Malaysian Machinery industry. The company's shares are up 18% from a week ago. It is worth noting though that we have found 1 warning sign for Pentamaster Corporation Berhad that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
06-04-2025
- Business
- Yahoo
Institutional owners may consider drastic measures as Pentamaster Corporation Berhad's (KLSE:PENTA) recent RM334m drop adds to long-term losses
Significantly high institutional ownership implies Pentamaster Corporation Berhad's stock price is sensitive to their trading actions The top 6 shareholders own 50% of the company Insider ownership in Pentamaster Corporation Berhad is 25% AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. To get a sense of who is truly in control of Pentamaster Corporation Berhad (KLSE:PENTA), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 42% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk). And institutional investors saw their holdings value drop by 16% last week. Needless to say, the recent loss which further adds to the one-year loss to shareholders of 43% might not go down well especially with this category of shareholders. Also referred to as "smart money", institutions have a lot of sway over how a stock's price moves. As a result, if the decline continues, institutional investors may be pressured to sell Pentamaster Corporation Berhad which might hurt individual investors. In the chart below, we zoom in on the different ownership groups of Pentamaster Corporation Berhad. Check out our latest analysis for Pentamaster Corporation Berhad Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that Pentamaster Corporation Berhad does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Pentamaster Corporation Berhad's earnings history below. Of course, the future is what really matters. We note that hedge funds don't have a meaningful investment in Pentamaster Corporation Berhad. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Pentamaster Corporation Berhad's case, its Top Key Executive, Choon Chuah, is the largest shareholder, holding 20% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.7% and 7.7%, of the shares outstanding, respectively. On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our most recent data indicates that insiders own a reasonable proportion of Pentamaster Corporation Berhad. Insiders have a RM439m stake in this RM1.8b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling. The general public, who are usually individual investors, hold a 29% stake in Pentamaster Corporation Berhad. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Our data indicates that Private Companies hold 3.3%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph . Ultimately the future is most important. You can access this free report on analyst forecasts for the company . NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
20-03-2025
- Business
- Yahoo
An Intrinsic Calculation For Pentamaster Corporation Berhad (KLSE:PENTA) Suggests It's 26% Undervalued
Pentamaster Corporation Berhad's estimated fair value is RM3.82 based on 2 Stage Free Cash Flow to Equity Pentamaster Corporation Berhad is estimated to be 26% undervalued based on current share price of RM2.84 Our fair value estimate is 1.4% lower than Pentamaster Corporation Berhad's analyst price target of RM3.87 How far off is Pentamaster Corporation Berhad (KLSE:PENTA) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. View our latest analysis for Pentamaster Corporation Berhad We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) RM40.9m RM106.8m RM143.9m RM166.1m RM183.1m RM198.2m RM211.8m RM224.3m RM236.0m RM247.1m Growth Rate Estimate Source Analyst x2 Analyst x4 Analyst x4 Analyst x1 Est @ 10.26% Est @ 8.26% Est @ 6.86% Est @ 5.88% Est @ 5.20% Est @ 4.72% Present Value (MYR, Millions) Discounted @ 9.6% RM37.3 RM88.9 RM109 RM115 RM116 RM114 RM112 RM108 RM104 RM99.0 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM1.0b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.6%. We discount the terminal cash flows to today's value at a cost of equity of 9.6%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM247m× (1 + 3.6%) ÷ (9.6%– 3.6%) = RM4.3b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM4.3b÷ ( 1 + 9.6%)10= RM1.7b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is RM2.7b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of RM2.8, the company appears a touch undervalued at a 26% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Pentamaster Corporation Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.6%, which is based on a levered beta of 1.009. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Strength Currently debt free. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Machinery market. Opportunity Annual earnings are forecast to grow faster than the Malaysian market. Trading below our estimate of fair value by more than 20%. Threat Revenue is forecast to grow slower than 20% per year. Although the valuation of a company is important, it ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. What is the reason for the share price sitting below the intrinsic value? For Pentamaster Corporation Berhad, we've compiled three pertinent factors you should explore: Financial Health: Does PENTA have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does PENTA's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every Malaysian stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
18-02-2025
- Business
- Yahoo
Shareholders in Pentamaster Corporation Berhad (KLSE:PENTA) are in the red if they invested a year ago
Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. Investors in Pentamaster Corporation Berhad (KLSE:PENTA) have tasted that bitter downside in the last year, as the share price dropped 19%. That's well below the market return of 6.6%. At least the damage isn't so bad if you look at the last three years, since the stock is down 2.0% in that time. More recently, the share price has dropped a further 9.4% in a month. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. Check out our latest analysis for Pentamaster Corporation Berhad To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Unhappily, Pentamaster Corporation Berhad had to report a 21% decline in EPS over the last year. This proportional reduction in earnings per share isn't far from the 19% decrease in the share price. Therefore one could posit that the market has not become more concerned about the company, despite the lower EPS. Rather, the share price is remains a similar multiple of the EPS, suggesting the outlook remains the same. You can see below how EPS has changed over time (discover the exact values by clicking on the image). It might be well worthwhile taking a look at our free report on Pentamaster Corporation Berhad's earnings, revenue and cash flow. While the broader market gained around 6.6% in the last year, Pentamaster Corporation Berhad shareholders lost 19% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 1.2%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Before deciding if you like the current share price, check how Pentamaster Corporation Berhad scores on these 3 valuation metrics. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
