On The Mend For A Stronger 2021
The strong revenue momentum based on the latest orderbook backlog is cushioning the sector-wide margin pressure. Meanwhile, structural growth from the adoption of next-gen technologies is accelerating. Pentamaster envisages overtaking its peak sales performance in 2019. As the stock is trading at a two-year forward PE of 29.6x against a two-year net profit CAGR of 24%, we believe the negatives have been fairly priced in. Maintain BUY with a target price of RM6.20.