CHAIRMAN’S STATEMENT
(CONT’D)
and securing businesses of shorter credit exposure that
give better profit margin. As my Lord God says “The
plans of the diligent lead to profit, as surely as haste
leads to poverty”.
Nevertheless, we cannot take this accomplishment as
achievement. Today, the automation business is very
competitive and dynamic in terms of its technological
advancement. While it is business as usual on our
growth agenda, it is business unusual on pricing,
competition and cost. Given the circumstances, we
introduced and executed a more robust cost efficiency
campaign known as “COST WITH NO WASTE”
which encompasses all areas of operation with the
determination to reduce and eliminate unnecessary
wastage in cost. Towards this end, we hope to embark
on our journey forward anchored on two focal points:
business sustainability and value extraction.
CORPORATE DEVELOPMENT
On 19 March 2015, the Group through one of its
subsidiaries, Pentamaster Technology (M) Sdn Bhd
entered into a sale and purchase agreement with The
Penang Development Corporation for the proposed
acquisition of a piece of leasehold land situated in
Batu Kawan Industrial Park measuring 3.2309 acres.
The proposed acquisition is expected to be financed
through a combination of internally generated funds
and bank borrowings.
The proposed acquisition is to cater for the increase
in production activities which require bigger space for
assembly and testing activities. Barring any unforeseen
circumstances, the proposed acquisition is expected
to be completed in the fourth quarter of the financial
year ending 31 December 2015. Subsequently, we will
be able to commence the construction of the factory
building.
OUTLOOK
The many initiatives that we have undertaken over
the past few years which include the execution of the
restructuring and recovery strategies such as the focus
on our core technological standard products, business
consolidation and the shift to outsourcing model in
some of the manufacturing activities have done much
to bolster our performance. It is through this business
restructuring that we see the Group benefiting from
management’s focus on strategically strong businesses.
Going forward, we expect our latest standard
technological products to be well accepted in the
market place. The new innovation products especially
the Semiconductor Smart Device testing and Glove
Testing & Packing Machine will be the key drivers for
the group revenue growth in 2015. We will continue
to expand our range of products and services to offer
greater choice to our existing customers and to attract
new customers. While innovation is a priority for us, we
take prudent measures to ensure our new offerings fall
within an acceptable range of risk and that they add
value to our role as the equipment maker.
However, the overall climate of the global economy
remains fragile although it is expected to improve
modestly in 2015, supported by a sustained but
slow recovery in the United States and Eurozone
economies and moderate growth in China. The
unpredictable global economic situations potentially
impact the consumer purchasing power and hence the
manufacturing sectors which acquire the automation
solution from our business sector.
The silver lining amidst the sluggish economic
environment is that the prospects of the semiconductor
and glove industries stay encouraging. It was reported
by Gartner that the worldwide semiconductor sales
is expected to reach USD358 billion in 2015, which
is a 5.4% increase from 2014 while the worldwide
semiconductor capital spending is expected to
increase by 0.8% in 2015, signifying opportunities for
the Group to expand its market share further in 2015
and beyond. Subject to the external market conditions
and macroeconomic factors, the Group believes that
its performance will continue to grow positively with
these prospects in the horizon.
DIVIDEND
The Board of Directors does not recommend any
dividend payment for the financial year ended 31
December 2014.
APPRECIATION
The recent progress of the Group could not have been
achieved without the dedication and hard work of the
talented team of engineers, marketing, procurement,
finance and production. On behalf of the Board, I wish
to thank their effort that drives the quality, delivery and
profitability of our operation. From the management,
we are committed to continue the investment in the
development of our people, which is at the heart of
creating a great place to work.
On a personal note, my appreciation goes to my
fellow board members for their impeccable guidance,
valuable advice and support. Also, I would like to
convey my gratitude to all of our dedicated suppliers
who continue to support us for the success of the
Group. I also extend my gratitude to our customers
for all these years of support and the continued trust
placed with us.
Finally, I would like to record my appreciation to
the government agencies and authorities, and the
investing community including our shareholders, for
your continuous support and confidence in our journey
during the good and bad times.
CHUAH CHOON BIN
Executive Chairman
Pentamaster Corporation Berhad
(572307-U)
•
Annual Report 2014
06
