Through its subsidiaries, Wentel Engineering Holdings Bhd (WENTEL) is principally involved in the fabrication of semi-finished metal products, fabrication of metal parts and assembly of finished products. WENTEL is supported by its inhouse fabrication facilities including computer numerical control (CNC) machine and other manufacturing equipment as well as surface treatment and coating facilities. Its customers are manufacturers of security screening equipment, semiconductor manufacturing equipment, CNC machines, medical diagnostic equipment, passenger coaches and industrial 3D printers. For the FY20 to 9MFY23 financial periods, WENTEL's main markets and operations are located in Malaysia and Singapore.
Increasing production capacity and storage space, WENTEL intends to construct a new manufacturing plant. Exploring business opportunities with its existing and potential customers in the medical diagnostic equipment and semiconductor equipment manufacturing sectors, WENTEL intends to purchase machinery and equipment with improved fabrication parameters and/ or added functionality. We derive a fair value of RM0.32 based on a 23x PE multiple to its FY24F EPS of 1.4sen. The IPO is expected to raise approximately RM71.0m from the issuance of 273.2m new shares. 56.3% and 35.2% of the proceeds are allocated for construction of new manufacturing plant as well as purchase of new machinery and equipment, respectively.
Source: PublicInvest Research - 22 Jan 2024
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