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Thursday, March 15, 2018

Pentamaster's Growth Worth Investing?

Author: factsonly | Publish date: Thu, 15 Mar 2018, 03:46 PM

In response to the strong quarterly report for the year ending 31 December 2017, it's worth revisiting Pentamaster Corporation Berhad (7160.mk) after some correction lately. Some of my views below,

Comparison with other companies



If we compare with some of the companies that are Traded on Bursa Malaysia, Semiconductor sector, preliminary assessment based on the past 3 quarters, Pentamaster has the highest average growth, recording 28%, 16% and 35% for its revenue, PAT and operating cash flows before working capital changes. Further to the positive historical information, we still note that the inventory of Pentamaster group remains strong, recording above RM100 million for the past three quarters. These inventory balances are a positive indication that Pentamaster Group will show strong financial performance in the next quarter.

Note: For purpose of the computation of Pentamaster financials, PAT and operating cash flows exclude listing expenses.

Increase in the trading volume



Source: klse.i3investor

We have seen the daily trading volume has increased as seen from the growth in the lowest trading volume from last year. This is a positive indication that more liquidity will lower the trading risk (risk the buying and selling price deviates too much from the intended trading price)

Note: the trading volume from Q1 to Q4 was adjusted taking into account on the bonus issue and share split.

Disclaimer: the above is my personal view on the stock and I do not guarantee the outcome of the stock price. Please assess under your own risk.

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