KUALA LUMPUR (Feb 25): Pentamaster Corp Bhd (KL:PENTA) said its net profit for the fourth quarter fell 31.6% year-on-year to RM14.16 million from RM20.7 million, mainly due to weaker demand in its automated test equipment (ATE) segment.

Inventories written off, higher expected credit loss on trade receivables and increased research and development expenses also weighed on its earnings, the ATE manufacturer said in a bourse filing.

Earnings per share for the quarter ended Dec 31, 2024 (4QFY2024) fell to 1.99 sen from 2.91 sen per share a year earlier.

Quarterly revenue dropped 22.7% year-on-year to RM130.68 million from RM169.01 million.

No dividend was declared in the quarter.

Pentamaster said the ATE segment's revenue fell 59.8% to RM37.85 million from RM94.05 million in 4QFY2023, dragged down by weaker demand from the semiconductor-automotive sector, which was impacted by macroeconomic challenges and policy uncertainties of electric vehicles in key Western markets.

The ATE segment reported a loss before taxation of RM8.9 million, as compared to a profit before taxation of RM17.4 million in 4Q2023.

For the factory automation solutions (FAS) division, revenue rose 19% year-on-year to RM93.61 million from RM78.7 million, driven by its medical industry segment, which contributed 82.3% of the division’s revenue. The FAS segment recorded a higher profit before taxation at RM34.6 million as compared to RM20.3 million in 4QFY2023.

The group closed FY2024 on a weaker note as full-year net profit dropped 26.9% to RM65.21 million — its lowest since FY2018 when it posted a net profit of RM57.12 million — from RM89.13 million in FY2023, as revenue declined 10% to RM623.02 million from RM691.94 million.

Pentamaster expects its ATE segment to remain subdued in the first half of 2025, given the lack of certainty on the macro front, particularly in the semiconductor-automotive segment.

Despite these short-term challenges, the group maintains an optimistic long-term outlook for its ATE segment, driven primarily by its diversified portfolio and involvement in key growth areas, particularly its venture into the advanced packaging area.

Shares of Pentamaster closed down six sen or 1.8% at RM3.3, its lowest in almost three years, giving the group a market capitalisation of RM2.35 billion.