Future Plans for Growth:

  • Establishment of a new manufacturing facility.

The group plans to allocate RM9.4m (41.8% of IPO proceeds) to acquire a ready-built factory in Kajang or Semenyih, Selangor, with a land size of approximately 3.00 acres, to consolidate existing operations and accommodate new machinery. This new facility will centralize multiple processes currently spread across rented sites, including slitting, welding, grinding, die-cutting, and warehouse storage. The new facility is expected to commence operations on 2Q26.

  • Enhancing production efficiency with new machinery.

The group plans to invest in new machinery—including (i) a splitting machine with automated stacker, (ii) higher-capacity solvent-based adhesive lamination line, (iii) CNC cutting machines, (iv) high-frequency welding machines, and (v) sewing machines—to improve foam and non-foam production. These upgrades will reduce manual processes, enhance precision, and increase output. The new lamination line will boost capacity from 540m/hr to 700m/hr, while additional CNC and welding units will streamline manpower needs. RM3.0m (13.3% of IPO proceeds) will be allocated, with operations targeted to begin ranging from 2Q25 to 3Q26.

  • Strengthening business development and brand visibility

WTEC plans to allocate RM1.0m (4.4% of IPO proceeds) towards sales and marketing initiatives, including the hiring of three additional sales coordination personnel and participation in local and international exhibitions. These efforts aim to support business expansion, enhance customer engagement, and raise brand awareness across target markets.

M+ Fair Value

We assign a fair value of RM0.36 per share for WTEC, representing a 44.0% upside from its IPO price of RM0.25. This valuation is based on a P/E ratio of 18.0x, pegged to the mid-FY26F EPS of 2.04 sen. We believe the ascribed P/E is fair, as the 12-month forward P/E and historical average P/E among the selected Bursa Malaysia industrial products and trading members stand at 13.7x-22.8x. Meanwhile, despite having a smaller market capitalization of RM120.0m compared to the peer average of RM12868.2m, WTEC boasts a higher ROE of 30.0% and a net profit margin of 18.1%, outperforming the peer average of 5.8% and 10.4%, respectively.