10-07-2025
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
