WTEC Group targets operational efficiency, long-term growth post IPO

KUALA LUMPUR: Manufacturer of foam and non-foam products, WTEC Group Bhd reported a revenue of RM11.2 million for the first quarter (Q1) ended March 31, 2025 (FY25), with its core manufacturing segment contributing approximately 89.7% and trading activities accounting for the remaining 10.3%.
The company achieved a gross profit (GP) of RM3.6 million, translating into a stable GP margin of approximately 32.5%.
There are no comparative figures for the preceding corresponding quarter and period, as this is the company's first interim financial report, which is being announced in compliance with Bursa Malaysia's ACE Market Listing Requirements.
WTEC Group's profit before tax (PBT) was RM1.5 million, while profit after tax (PAT) was RM1.1 million, translating to a PBT margin of approximately 13.5% and a PAT margin of approximately 10.2%.
On an adjusted basis, after excluding one-off listing expenses of RM0.2 million, WTEC Group's adjusted PBT and PAT amounted to RM1.7 million and RM1.3 million, respectively.
This represents an adjusted PBT margin of approximately 14.8% and an adjusted PAT margin of approximately 11.5%.
Group managing director Tan Kok Kheng said following the recent listing, the company is committed to strengthening its position in the manufacturing sector by enhancing both its manufacturing capacity and
operational efficiency.
'The continued expansion of Malaysia's automotive, electrical, and electronics industries provides a supportive backdrop for demand in our foam and non-woven fabric products.
'To capitalise on this growth, we are investing in a new ready-built manufacturing facility that will consolidate multiple facilities to improve efficiency, streamline production, and provide the space needed to install new machinery and equipment we plan to purchase.
'The new facility is targeted to commence operations in the second quarter of 2026.
'At the same time, we acknowledge the global trade uncertainties stemming from the recent imposition of reciprocal tariffs by major economies.
'However, our exposure remains limited. Most of our revenue is derived from the Malaysian market, while most international orders are not destined for the US market.
'This domestic-centric revenue base provides insulation against global tariff impacts and supports our continued pursuit of stable, long-term growth,' Tan said.
To recap, WTEC Group was listed on the ACE Market of Bursa Malaysia on April 29, 2025 and had successfully raised RM22.5 million through its initial public offering exercise.
WTEC Group was listed on the ACE Market of Bursa Malaysia on April 29, 2025 and had successfully raised RM22.5 million through its initial public offering exercise.

Hashtags

Business

#ACEMarketListingRequirements

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

The Star

17 hours ago

The Star

Avoid losing your home

PETALING JAYA: Going by market reports, Malaysia's property transactions last year hit its highest levels over the past decade. According to the National Property Information Centre's Property Market Report 2024, the number of property transactions rose by 5.4% to 420,545 last year. That leads to the question: Are Malaysian home buyers getting financial protection for their mortgage? It is not mandatory for house buyers to purchase mortgage insurance, but getting one could protect them and their families from ending up homeless, said insurance professionals. 'This is to avoid adverse unforeseen circumstances that can land homeowners and their families in financial hardship,' said senior insurance consultant Leonard Tan. He explained that when a housing loan is left unpaid, the financial institution will initiate recovery actions, including foreclosure and auctioning off the property to recoup the outstanding loan. ALSO READ: Widow in a rut over unpaid housing loans Tan gave examples of mortgage insurance such as Mortgage Level Term Assurance (MLTA) or Mortgage Reducing Term Assurance (MRTA). 'These policies will provide the necessary funds and ensure that homeowners or their families have a roof over their head in the event of incapacitation or death of the borrower,' he said when contacted. Tan acknowledged that these policies have its pros and cons, so Malaysians taking up housing loans should evaluate which is suited for them. He said the MRTA is a life insurance policy that covers the outstanding balance of a mortgage and in tandem with the declining loan amount. 'It is straightforward and covers only the outstanding sum needed to settle the mortgage. 'The premium is a lump sum often paid upfront or included in the principal loan amount taken for a house and paid directly to the financial institution that provided the loan facility. (Click To Enlarge) 'There are no other additional benefits and if one settles the loan earlier, they may only receive a minute sum of the premium in refunds,' he said. As for MLTA, Tan said it is quite similar to a regular life insurance policy with the coverage sum remaining fixed throughout the loan tenure. 'If the coverage is RM300,000, the payout will be the same sum in the event of death or incapacitation even if the outstanding loan amount is RM50,000. 'The MLTA enables the beneficiary to have additional funds in hand when the outstanding loan amount is lower than the coverage,' he said. Although the policy is under the name of the homeowner, he said this sum is transferable and may be used to cover other loans they may take after the main mortgage is paid up. Since the MLTA has a bigger cash or surrender value compared to the MRTA, he said it would be far more expensive. Wealth manager Evan Teo said it is not compulsory for house buyers to purchase mortgage insurance, but some banks may decide to make it mandatory by bundling it with their mortgage loans. 'Some mortgage bankers also cross-sell it alongside the loan by offering a lower interest rate if the buyer takes up the MRTA or MLTA. 'I believe this is because bank assurance products such as MRTA and MLTA are now part of the mortgage banks or bankers' KPI,' he said, referring to the key performance index. But putting aside the bank's or banker's KPI, Teo said purchasing a mortgage insurance ultimately benefits house buyers. 'The majority of house buyers tend to be reluctant to purchase additional insurance unless it's required. 'Even though many insurance advisers are doing their best to educate the public, uptake is still relatively low unless it is packaged (into the loan),' he said. As such, Teo was of the view that the practice by some banks to bundle MRTA or MLTA with mortgage loans is a good move. He said in the past, the family members of loan takers would have to 'inherit' the housing loans when the borrower was not able to continue paying the monthly payment as they did not have insurance protection. However, Teo also advised house buyers to pay attention to the terms and conditions included in their housing loan with banks before purchasing an mortgage insurance. 'For example, the coverage period may be shorter than the actual loan tenure or the policy might only cover death or total permanent disability. 'What happens if the buyer is diagnosed with a critical illness after the insurance term ends and this affects their ability to earn an income and continue loan repayments?' 'So, it's better to analyse your own needs in relation to the mortgage before deciding based on your financial capability,' he said.

N. Sembilan ready to welcome arrival of delegates attending ASEAN meeting

The Sun

a day ago

The Sun

N. Sembilan ready to welcome arrival of delegates attending ASEAN meeting

PORT DICKSON: The Negeri Sembilan government is ready to welcome the arrival of delegates who will be attending several meetings in conjunction with Malaysia's ASEAN Chairmanship 2025, which is scheduled to be held at a hotel here on Sept 9-10. State Tourism, Arts and Culture Committee chairman Nicole Tan said their preparations included aspects such as cleanliness, beautification, landscaping and programme content that will highlight the unique culture and traditions of Negeri Sembilan, particularly the state's unique adat perpatih. 'Our preparations are almost complete, just a few areas that need further improvement to ensure everything is in perfect order for us to welcome the arrival of the delegates. 'This welcome reception will also be a platform to promote the Visit Negeri Sembilan Year 2026 by showcasing the state's cultural uniqueness, scenic views, traditional local cuisine, warm hospitality and tourist attractions,' she told reporters after officiating the launch of the Port Dickson Festival 2025 here yesterday. Several ASEAN-related meetings and programmes are scheduled to be held in Negeri Sembilan on Sept 9-10, including the Senior Officials' Meeting (SOM) for ASEAN Plus Three (APT) and the East Asia Summit (EAS), in addition to the 15th ASEAN Maritime Forum and 13th Expanded ASEAN Maritime Forum. Malaysia officially took over the ASEAN Chairmanship on Jan 1, with the theme 'Inclusivity and Sustainability'. Malaysia has previously chaired ASEAN in 1977, 1997, 2005 and 2015. Meanwhile, Tan said that 10,000 visitors are expected to attend the four-day Port Dickson Festival, which began Thursday, involving 60 traders, including influencers.

Negeri Sembilan readies for key ASEAN 2025 meetings