■ The recent lockdowns and tight supply of components have made it a challenge for
Pentamaster to develop business and deliver products and services in the near term.
■ Pentamaster management has seen increasing activity in the electro optical
(smartphone), auto and semi-conductor segments.
■ The medical devices segment is expected to make a meaningful contribution only by
early 2023 and to be a medium- and long-term growth driver for Pentamaster.
■ We lowered our net profit forecasts by 4.1% in 2021F and 0.1% for 2022F after
factoring in slower revenue growth.
■ We maintain our ADD rating, with a target price of HK$2.82, based on 18x 2021F P/E
(unchanged). The cut in target price is due mainly to lower net profit forecasts.