WTEC GROUP BERHAD

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***Disclaimer***Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision.

Open to apply: 09/04/2025
Close to apply: 15/04/2025
Balloting: 17/04/2025
Listing date: 29/04/2025
 
Share Capital    
Market cap: RM120 mil
Total Shares: 480 mil shares
1^st day listing tradable shares: 133.368 mil shares 

Industry CARG 
1. Sales value* of motor vehicles, trailers and semitrailers in Malaysia (2020-2024): 9.3%
2. Production volume of passenger cars and commercial vehicles in Malaysia (2020-2024): 14.0%
3. Sales value* of the E&E industry in Malaysia (2020-2024): 10.8%
4. Production volume of air-conditioners in Malaysia (2020-2024): 17.0%
Industry competitors comparison (net profit%)
1.      WTEC Group: 15.8%
2.      Inoac Malaysia S/B: 30.3%
3.      PTS Industries S/B: 17.8%
4.      Ski Foam Industries S/B: 14.7%
5.      Paclink Precision Manufacturing S/B: 12.3%
6.      Others: losses to 9.5%

Business (FYE 2024) 
Mainly involved in the manufacturing and trading of foam and non-foam products.
Revenue by segment
1. Manufacturing foam products: 65.74%
2. Manufacturing non-foam products: 15.89%
3. Trading: 18.37%
Revenue by User Industries
1. Automotive: 36.50%
2. E&E : 33.40%
3. Construction: 5.97%
4. Medical & PPE: 7.16%
5. Trading: 4.23%
6. Others: 12.74%
Revenue by Geo
1. Malaysia: 75.98%
2. Vietnam: 12.38%
3. Australia: 2.96%
4. Thailand: 3.57%
5. Others: 5.11%

Fundamental 
1.Market: Ace Market
2.Price: RM0.25
3.Forecast P/E: 14.36
4.ROE(Pro forma):  15.44%
5.ROE: 24.85% (FYE2024), 31.99%(FYE2023), 22.43%(FYE2022), 14.93%(FYE2021)
6.Net asset: 0.1107
7.Total debt to current asset: 26.6 (Debt: 11.628mil, Non-Current Asset: 20.969mil, Current asset: 43.785mil)
8.Dividend policy: PAT 30% dividend policy.
9. Shariah status: Yes
 
Past Financial Performance (Revenue, Earning Per shares, PAT%) 
2024 (FYE 31Dec): RM52.025 mil (Eps: 0.0171). PAT: 15.76%
2023 (FYE 31Dec): RM50.856 mil (Eps: 0.0195), PAT: 18.43%
2022 (FYE 31Dec): RM52.542 mil (Eps: 0.0132), PAT: 12.09%
2021 (FYE 31Dec): RM43.118 mil (Eps: 0.0073), PAT: 8.13%
 
Major customer (FYE 2024)     
1. Permabonn Sdn Bhd: 13.82%
2. APM Group: 10.79%
3. DK Leather Seats Sdn Bhd: 6.94%
4. Toyota Boshoku UMW Sdn Bhd: 6.46%
5. Armstrong Industrial Group: 5.26%
***total 43.27%
 
Major Sharesholders    
1. Tan Kok Kheng, aged 59: 24.07% (direct)
2. Tiow See Yen, aged 54 : 24.07% (direct)
3. Wansern Marketing:  24.07% (direct)
4. Eu Tian Chiek, aged 67 : 24.07% (indirect)
5. Eu TIong Nam, aged 56 : 24.07% (indirect)
6. Eu Tiong Lai, aged 64 : 24.07% (indirect)
7. Kam Tang Lim, aged 67 : 24.07% (indirect)
 
Directors & Key Management Remuneration for FYE2025   
(from Revenue & other income 2024)
Total director remuneration: RM3.484 mil
key management remuneration: RM0.95 mil – RM1.30 mil
total (max): RM4.784 mil or 23.85%
 
Use of funds

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is middle to high risk investment, and also come with low grow return opportunities. 

*Valuation is only personal opinion & view. Perception & forecast will change if any new quarter result release. Reader take their own risk & should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company.