CHAIRMAN’S STATEMENT
GENERAL OVERVIEW
I am delighted to report that the Group delivered
another year of substantial progress with a good set of
financials in the year under review albeit the prevailing
challenges faced in the industry. Over the course of
2014, we continued to make progress and benefited
from the substantial improvement in our operating
performance through streamlining the way we do
business and managing our cost base. The Group has
also participated actively in trade exhibitions to further
increase its profile and presence as one of the leading
automation solution provider for the global market.
The greater business outsourcing activities and
growing demand for the manufacturing automation
solution have created strong demand for our new
standard technological solution from our existing and
new customer bases. Coupled with the improvement
in market condition, we performed better in terms of
the Group’s revenue contribution and its profitability
as compared to the preceding year. Adding to the
positive impact on the overall performance was the
decisive stand embraced by the Group to be selective
over the type of projects undertaken to improve the
overall quality and profile of our business mix. Such
initiative is in tandem with the Group’s regard for
risk management as an integral part of our business
operations.
As of early December 2014, our Malaysian Ringgit has
dipped to approximately RM3.48 per US dollar. While
the depreciation of our Ringgit may have caused the
loss of confidence in foreign investors and tempting
inflationary pressures, the weakening Ringgit is not all
gloom and doom for certain sectors in our country.
Pentamaster being a manufacturer in an export driven
business, the depreciation of the Ringgit to certain
extent benefited us.
The Group’s continuous emphasis and investment
in research and development (“R&D”) activities has
enabled the Group to widen its range of semiconductor
backend process equipment with new and upgraded
mechanical and software features. It is important for
the Group to continue moving up the automation
technology value chain where innovation continues
at a relentless pace. In this respect, we are grateful
towards MIDA (Malaysian Investment Development
Authority) for the R&D grant and support extended
to the local companies like us. With the MIDA R&D
grant, Pentamaster, being an automated mechanical
test handler design house, is given the opportunity to
venture into the testing technology together with the
automated test handler as a one stop total test solution
provider.
With the emergence of Internet of Things which has
arisen on the back of the growing interconnectedness
of things, smart electronic devices such as RFID,
MEMS Microphone, MEMS Sensor, MEMS Gyro,
MEMS Camera module etc are the key driving force
behind the semiconductor growth in 2015 and years
to come. More sophisticated test solution is required
for the manufacturing of these smart devices. The R&D
grant from MIDA is timely in assisting us to fulfil our
aspiration to become one of the premium test solution
providers for the smart devices in the global market.
FINANCIAL PERFORMANCE
Our financial performance in 2014 is the best since
2010 and is trending in the right direction. It is worth
to note the growth in operating profit of RM7.6
million on the back of RM81.0 million in revenue
despite the fact that the Group had to contend with
intensified competition. In the year under review,
the Group witnessed modest growth in revenue, an
increase of 20.3% as compared to RM67.3 million
Pentamaster Corporation Berhad
(572307-U)
•
Annual Report 2014
04
