KUALA LUMPUR: Wentel Engineering Holdings Bhd’s market share in Malaysia will largely be in the electronics and electrical (E&E) sector given the presence of numerous semiconductor and electronics manufacturers in the country.
CEO Chuah Chong Syn said the company is located in Johor and initially engaged in this segment through the Singapore contract manufacturing industry.
“Malaysia’s focus is on electronics and precision engineering, and Wentel Engineering is part of this sector, benefiting from the opportunities it presents. We are aiming for organic growth through our customers. This presents a chance to expand into industries we previously did not serve, particularly with the opportunity to transfer production from China to Malaysia and have it manufactured by Wentel Engineering. There are still many opportunities in Singapore as well,” he told reporters at a media briefing today.
Wentel Engineering supplies metal parts, either as individual items or in semi-finished assemblies.
In 2020, during the pandemic, the company saw an opportunity when demand for Covid testing machines, particularly PCR machines for swab tests, surged.
“This led us to enter the medical field, starting with the production of these machines. Since then, our customers have continued to engage us for other projects, including transferring products from Europe to Singapore and new R&D initiatives.
“Most of the products we produce are for laboratory tests, such as blood typing and analysis. Yes, we are still active in this business, focusing on laboratory applications,” Chuah said.
On the security segment, Chuah said as governments increase security measures, there will be a higher demand, particularly for technology such as scanning machines and these will be used by end users such as airports and ports.
“As a result, our customers will need to design new machines to meet these requirements and help local governments compete globally. This demand for security machines contributes to our organic growth.”
On the earnings front, Wentel Engineering’s revenue for the fourth quarter ended Dec 31, 2024 (FY24) rose by 8.68% to RM28.94 million, compared to RM26.62 million in the same quarter of the previous year. The growth was primarily driven by higher demand for metal fabrication, supported by a strong recovery in the semiconductor market.
Meanwhile, the group’s profit before tax (PBT) surged by 93.79% to RM8.43 million, up from RM4.35 million in the corresponding quarter of 2023. The significant increase in PBT was attributed to higher revenue and an improved gross profit margin.
For FY24, the group recorded revenue of RM112.43 million, a 13.85% increase from RM98.75 million in the same period of 2023. This growth was primarily driven by higher demand for semi-finished metal products and metal part fabrication, supported by the strong recovery of the semiconductor market.
The group’s PBT rose by 10.63% to RM20.82 million, compared to RM18.82 million in the previous year’s corresponding period. This increase was in line with higher revenue, increased interest income from IPO proceeds placed in fixed deposits, and an improved gross profit margin.
The higher margin was attributed to a favorable product mix, with a greater proportion of high-margin products ordered by customers.
In a filing to Bursa Malaysia, Wentel Engineering said the global trade rebounded in the first half of 2024, rising 2.3% year-on-year, with moderate growth expected through 2025. This recovery follows a 2023 slump caused by high inflation and rising interest rates.
The World Trade Organization forecasts a 2.7% increase in global trade volume for 2024 and 3% for 2025, with gross domestic product growth steady at 2.7% in both years.
