Tech firms optimistic despite challenges

Pentamaster, Globetronics focusing on strategic areas

“We remain steadfast in directing investments towards strategic areas such as R&D, system infrastructure and manufacturing capacity.” Pentamaster Corp Bhd

PETALING JAYA: Amid challenges in the global semiconductor industry, local technology companies will be focusing on strategic areas to mitigate any impact on their earnings prospects.

Pentamaster Corp Bhd will prioritise sustainability as it approaches product, geographical and segment diversification.

In a filing with Bursa Malaysia yesterday, the automation manufacturer said despite it registering some contraction in order book for the quarter, it is optimistic about the second half of the year.

“There are some positive tailwinds appearing, especially in the new compound and high-performance semiconductor devices that are required in generative artificial intelligence (AI), data centres and automotive segments,” it said.

Right now, the medical device segment holds the largest share of its order book and revenue momentum, followed by automotive, owing to its diversification strategies.

Pentamaster also said it will focus its resources on product development and talent upskilling in facing the start of a new cyclical upswing in the current technology market centering on AI, automotive and medical devices.

“We remain steadfast in directing investments towards strategic areas such as research and development (R&D), system infrastructure and manufacturing capacity to anchor our foundation towards tapping these upcoming growth opportunities and solidifying our competitive edge in the market,” it said.

On cost management, the group said it will keep a close eye on its current structures while implementing targeted cost-control measures with efforts to maintain a skilled and stable workforce in navigating these economic challenges and fostering innovation.

For its first quarter ended March 31, 2024, Pentamaster recorded a lower net profit of Rm19.38mil compared to Rm21.27mil previously.

This is mainly due to a decline in revenue from its automated test equipment as well as an additional bonus payout for its employees, especially the direct and indirect labour category during the quarter as part of the group’s initiatives in talent pool retention.

The group also noted there was a higher incurrence of R&D cost of RM200,000 for the single-use medical devices in the first quarter of 2024 compared to the last quarter.

Its revenue, however, was higher at Rm170.79mil for the quarter under review compared to Rm165.31mil for the same quarter last year.

Meanwhile, Globetronics Technology Bhd expects the semiconductor industry to continue experiencing challenging macroeconomic and geopolitical issues resulting in unpredictable market conditions.

In a filing with Bursa Malaysia, the group said it has taken measures and shall continue to strive to minimise any potential exposures or disruptions arising from these challenges.

For its first quarter ended March 31, 2024, Globetronics’ net profit rose to Rm5.72mil from Rm3.3mil in the previous corresponding quarter, mainly due to foreign exchange gain of Rm1.8mil, as well as higher interest income of Rm1.3mil

Revenue, meanwhile, dipped to Rm29.9mil from Rm33.13mil previously, mainly due to the lower volume loadings of products from certain of the group’s customers.

Basic earnings per share stood at 0.85 sen compared with 0.49 sen a year earlier.

Globetronics said it is actively engaging with a few potential customers to secure new businesses.