KUALA LUMPUR: ACE Market-bound WTEC Group Bhd
expects to increase its revenue by at least 10% in the financial year ended Dec 31, 2026 (FY26) compared to FY24 by enhancing production capabilities using funds raised from its initial public offering (IPO).
Group managing director Tan Kok Kheng said this would, however, depend on market conditions and the speed of the process of acquiring its new factory, which will be located either in Kajang or Semenyih, Selangor.
The company, which makes foam products and non-woven fabric parts for industries such as automotive, posted an after-tax profit of RM8.2mil on a revenue of RM52mil in FY24.
“We are still monitoring (the market situation) from time to time and expect the FY26 results to be at least in line with FY24 numbers even if we do not achieve the target 100%, given the current market uncertainty,” he told a press conference in conjunction with the launch of the company’s prospectus yesterday.
The manufacture of foam products accounted for 65.7% of the group’s total revenue last year.
The manufacture of non-foam products contributed 15.9% while the remaining 18.4% came from the trading of polyurethane foam and other products.
The company aims to raise RM22.54mil from the IPO, of which RM9.42mil (41.8%) will be used to purchase and renovate a new factory and RM3mil (13.3%) will be for the purchase of new machinery and equipment.
The rest of the proceeds will be for working capital (RM5.12mil), sales and marketing expenses (RM1mil), and estimated listing expenses (RM4mil).
Tan said that after acquiring the “ready-built” manufacturing facility, WTEC would consolidate operations from multiple facilities into the new factory to improve efficiency, reduce costs, and provide additional space for new machinery.
Operations are expected to start in the second quarter of 2026.
He said the company continues to see opportunities in the automotive, electrical and electronics, medical and personal protective equipment sectors. — Bernama
