Pentamaster net profit climbs 19.6% as AI automation demand strengthens

Pentamaster Corp Bhd posted net profit of RM20.46 million for 3QFY2026, up 19.6% year-on-year, as demand for factory automation increased, particularly in AI computing. Its bourse filing showed revenue reached RM224.05 million, a 51.3% increase.

For the quarter ended Sept 30, 2026, the profit comparison was RM17.11 million a year earlier, while revenue previously stood at RM148.08 million. Pentamaster said higher revenue improved fixed-cost absorption and operating leverage, while its sales mix and project margins also strengthened. It did not recommend a dividend.

Factory automation remained the largest revenue source, generating RM171.63 million, up 68.9%, mainly through deliveries for AI server assembly lines. Automated test equipment revenue increased 31.2% to RM50.60 million, supported by automotive, electro-optical and AI Compute deliveries.

Healthcare revenue declined 39.3% to RM5.92 million amid weaker medical-device sales and variations in customer orders and delivery timing. The segment's pre-tax loss widened to RM6.4 million from RM3.8 million, which the company attributed to lower revenue and ongoing expansion-related operating costs.

Across 9MFY2026, net profit increased 37.4% to RM57.42 million, while revenue climbed 37.9% to RM585.27 million. That revenue exceeded the RM583.68 million generated during the whole of FY2025.

Co-founder and group executive chairman Datuk Chuah Choon Bin forecast double-digit revenue growth for FY2026, citing RM500 million in outstanding orders. For FY2027, he expects AI computing to represent about 48% of revenue and medical to contribute 28%.

Pentamaster is renovating approximately 120,000 sq ft of unused production space at Campus 3 in Batu Kawan, Penang, mainly for AI Compute and medical operations. Chuah put planned capital expenditure for 2027 at about RM30 million.