CHAIRMAN’S STATEMENT
(CONT’D)
in the preceding year. This was primarily attributable
to the improvement in market condition and stronger
demand for our automated equipment and new
standard technological solution from our existing and
new customers. Other than the automated equipment
operating segment, our contract manufacturing
business saw an increase in revenue contribution from
the positive acceptance of our product and demand
from a larger diversified customer base.
From a bottom line perspective, the Group closed its
financial year with a pre-tax profit of RM7.4 million as
opposed to a pre-tax profit of RM3.9 million in 2013
which translated to an increase in earnings per share
to 3.40 sen from 1.79 sen a year ago. The improved
financial performance in 2014 was mainly driven by
the increase in turnover coupled with better product
mix secured during the year.
On the balance sheet front, the Group will continuously
minimise its borrowing unless necessary and put
continuous effort in adopting prudent cost management
via leaner human resource and manufacturing process,
implementation of lean methodology and securing
businesses of good collection and better profit margin.
ALIGNMENT
At present, the Group’s business focus remains in
supplying equipment used in the sectors of smart
phone, semiconductor, LED and medical glove
industries. During the year, we made great progress
in positioning our presence and continued to win
new orders from world renowned customers from the
above mentioned industry sectors. The strategy for the
Group is to align ourselves with the niche and high-
end technological solution projects so as not to be in
competition for price value alone.
There is no doubt that the increasing competitiveness
in the industry had put pressures on the entire supply
chain. While the margin compression and intense
competition is inevitable, I am thankful that the long
term relationship established with our vendors saw us
working through these challenges with little disruption
to our business cost structure. Given the fast evolving
customer needs in our industry, it is imperative that
the continual improvement development of our
vendor base in terms of technology and quality to
go in tandem with the advancement of technological
solution demanded by our customers. From cost
management perspective, we have to continuously
monitor our operation through the pervasive focus
on process improvement and operation optimisation
by implementing standardized build processes and IT
base systems such as the MRP (material requirements
planning). Noting the importance of the consistent
pursuit of high productivity and cost efficiency in all
aspects of the operations, the Group is mindful of
the continuous need to prioritise the deployment
of resources to where they are most effective. This
can be seen through a centralised procurement
system adopted by the Group to ensure the Group’s
competitive advantages.
The many initiatives that we have undertaken
throughout the years saw us harvesting positive results
particularly from the process of business rescaling
and restructuring which began in year 2010. The
reduction in bank borrowing over the years broadly
reflects our achievement of operating more efficiently
•
Pentamaster Corporation Berhad
(572307-U)
Annual Report 2014
05
