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.
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