Pentamaster RM520mil Orderbook Signals Stronger Earnings

Quick Answer: Pentamaster Corp Bhd‘s near-record RM520 million orderbook gives earnings visibility for the fourth quarter of 2026 and financial year 2027, according to RHB Research. RHB trimmed its FY2026 earnings forecast by 9% on a higher assumed effective tax rate, but kept its Buy rating and RM6.32 target price. For shareholders, the tax rate is the number to watch, since it also caused nine-month earnings to fall short of expectations.

The Pentamaster orderbook sits near record at RM520 million, giving Pentamaster Corp Bhd earnings visibility into FY2027. Demand for AI computing and medical equipment is driving the backlog, RHB Research said.

What Is Inside Pentamaster’s RM520mil Orderbook?

Technology chips and circuit boards representing Pentamaster orderbook AI computing demand — AI computing demand is a key driver of the Pentamaster orderbook.

The orderbook breaks down by segment:

Medical equipment: 45%
AI computing: 30%
Consumer and industrial products: 10%
Other segments: 15%

Medical equipment is the largest slice, yet healthcare revenue fell 39% year-on-year to RM5.9 million on lower medical device sales. Pentamaster is also bringing an additional 120,000 square feet of unused space at Campus 3 into operation for future manufacturing.

Why Did RHB Research Cut FY2026 Earnings by 9%?

RHB Research trimmed its financial year 2026 earnings forecast by 9% to account for a higher assumed effective tax rate. It left its FY2027 and FY2028 projections unchanged.

The research house maintained its Buy rating with an unchanged target price of RM6.32.

How Did Pentamaster’s Nine-Month Profit Compare?

Core net profit for the nine months ended September 2026 rose 10.1% year-on-year to RM49.2 million. Revenue climbed 37.9% to RM585.3 million over the same period.

Earnings still fell short of expectations, mainly due to a higher-than-expected effective tax rate. That gap explains why the FY2026 forecast was cut.

Which Segments Drove Pentamaster’s Third-Quarter Revenue?

Factory automated solutions: third-quarter revenue surged 72.3% to RM171.6 million, or 63% of total quarterly revenue
Automated test equipment: revenue grew 30.7% to RM50.6 million, with electro-optical solutions at 23% and AI compute solutions at 5%
Healthcare: revenue contracted 39% to RM5.9 million

Factory automation remains the main growth driver. AI compute is still a small share of the segment today, but it is the part of the orderbook RHB Research links to future demand.

Does the 70% Tax Incentive Help Pentamaster Shareholders?

Pentamaster has secured a new tax incentive covering 70% of statutory income from its advanced packaging and advanced photonics equipment under the automated test equipment segment. This matters because the higher effective tax rate is the reason earnings missed expectations.

RHB Research said demand for sophisticated AI and high-performance computing testing should support the group’s advanced packaging test solutions under its “9 Samurai” initiative into FY2027. Readers tracking AI-linked names can read our AI Stock Analysis for Malaysians guide.

Key Takeaways

The Pentamaster orderbook stands near record at RM520 million, with 45% from medical equipment and 30% from AI computing.
RHB Research cut FY2026 earnings by 9% on a higher assumed effective tax rate, while FY2027 and FY2028 remain unchanged.
Nine-month core net profit rose 10.1% to RM49.2 million on revenue of RM585.3 million.
Factory automated solutions revenue surged 72.3% in the third quarter, while healthcare revenue fell 39%.

This article is for general information only and is not investment advice. Always do your own research before making any decision on Bursa Malaysia-listed shares. Source: The Edge, citing RHB Research.

Frequently Asked Questions

What is Pentamaster’s orderbook worth?

Pentamaster’s near-record orderbook stands at RM520 million. RHB Research says it provides earnings visibility for the fourth quarter of 2026 and financial year 2027.

Why did RHB Research cut Pentamaster’s FY2026 earnings forecast?

RHB Research trimmed the FY2026 earnings forecast by 9% to account for a higher assumed effective tax rate. Its FY2027 and FY2028 projections were left unchanged.

What is RHB Research’s target price for Pentamaster?

RHB Research kept its Buy rating and unchanged target price of RM6.32 on Pentamaster Corp Bhd. The rating and target come from the research house, not from this article.

How much did Pentamaster’s revenue grow in the nine months ended September 2026?

Pentamaster’s revenue rose 37.9% to RM585.3 million for the nine months ended September 2026. Core net profit grew 10.1% year-on-year to RM49.2 million over the same period.

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