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***Important***Blogger is not wrote any recommendation & suggestion. All is personal
opinion and reader should take their own risk in investment decision.
opinion and reader should take their own risk in investment decision.
Open to apply: 15 Jan 2024
Close to apply: 22 Jan 2024
Balloting: 24 Jan 2024
Listing date: 06 Feb 2024
Close to apply: 22 Jan 2024
Balloting: 24 Jan 2024
Listing date: 06 Feb 2024
Share Capital
Market cap: RM299 mil
Total Shares: 1.150 bil shares
Industry (CAGR 2018-2022)
GDP of fabricated metal product industry: 1.0%
Sales value from machining, and treatment and coating of metals in Malaysia: 8.9%
GDP of machinery and equipment industry: 4.3%
Sales value of domestically manufactured machinery and equipment: 7.2%
Export value of machinery, equipment and parts: 11.7%
Industry competitors comparison (net profit%)
1. Wentel: 17.4%
2. MACE Instrumentation S/B : 13.4% (JHM: 28.09)
3. UWC: 19.8 % (PE126)
4. Dufu: 22% (PE50.45)
5. SFPtech: 37.3% (PE55.82)
6. CPETech: 20.9% (PE63.74)
6. Grand Venture Technology S/B: 19.2% (SGX: PE18.93)
7. Others: -2.8% to 14.6%
Business (FPE 2023)
Fabrication of semifinished metal products, fabrication of metal parts and assembly of finished products.
Revenue Segments
1. Fabrication of semifinished metal product: 75.56%
2. Fabrication of metal parts: 16.66%
3. Assembly of finished products: 7.78%
Revenue by Geo
1. Malaysia: 69.02%
2. Singapore: 30.48%
3. US: 0.50%
Fundamental
1.Market: Ace Market
2.Price: RM0.26
3.Forecast P/E: 18.51 (latest 12 month, EPS RM0.01405)
4.ROE(Pro forma II): 9%
5.ROE: 23.16%(FPE2022), 18.45%(FYE2021), 5.38%(FYE2020),
6.Net asset: RM0.14
7.Total debt to current asset: 0.1038 (Debt: 13.737mil, Non-Current Asset: 45.244mil, Current asset: 132.393mil)
8.Dividend policy: doesn’t have any formal dividend policy.
9. Shariah status: Yes
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FPE 30Sep, 9mths): RM72.129 mil (Eps: 0.0096), PAT: 15.25%
2022 (FYE 31Dec): RM117.540 mil (Eps: 0.0178), PAT: 17.42%
2021 (FYE 31Dec): RM89.854 mil (Eps: 0.0119),PAT: 15.25%
2020 (FYE 31Dec): RM64.759 mil (Eps: 0.0031),PAT: 5.53%
Major customer (FPE 2023)
1. Rapiscan Group: 34.79%
2. Customer E Group: 31.36%
3. Makino Asia Pte Ltd: 17.25%
4. Customer D Group: 5.87%
5. Customer B Group: 4.57%
***total 92.84%
Major Sharesholders
1. Wong Kim Fatt: 37.07% (direct)
2. Ban Kim Wah: 13.25% (direct)
3. Loo Sok Ching: 0.6% (direct)
4. WCSB: 16.56% (indirect)
5. Tai Yuan Heng: 4.77% (direct)
Directors & Key Management Remuneration for FYE2023
(from Revenue & other income 2022)
Total director remuneration: RM0.952 mil
key management remuneration: RM1.054 mil – RM1.25 mil
total (max): RM2.202 mil or 7.06%
Use of funds
1.Part finance the construction of 2 blocks factory & 2 blocks workers’ hostel: 56.31%
2.Part finance the purchase of new machinery and equipment: 35.24%
3.Estimated listing expenses: 8.45%
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is high risk investment, and also come with high 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.
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- Source: http://lchipo.blogspot.com/2024/01/wentel-engineering-holdings-berhad.html
