Good Morning All,
We issued a 2Q26 results note on our coverage stock WENTEL Engineering Holdings Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
📌 Earnings above expectations. 2Q26 core PAT surged 145.6% QoQ and 32.9% YoY to RM6.7m, the highest quarterly PAT since listing. 1H26 core PAT reached RM9.4m, driven by stronger margins, favourable product mix and FX movements.
📌 QoQ/YoY. Revenue rose 17.1% QoQ and 6.8% YoY to RM37.2m, while gross margin improved to 27.9%, from 24.1% in 1Q26 and 27.2% in 2Q25. Core PAT margin expanded to 17.9%.
📌 YTD. 1H26 revenue increased 4.4% YoY to RM69.0m, though core PAT declined 15.6% YoY to RM9.4m, mainly due to weaker 1Q26 margins and higher expenses.
📌 Outlook. We remain positive on WENTEL’s medium-term prospects, supported by demand from Malaysia’s E&E and semiconductor ecosystem. The 2Q recovery suggests 1Q weakness was largely timing and product-mix related.
📌 Forecast. We raise FY26f–27f core PAT by 63.5%/66.0% to RM17.6m/RM19.7m, reflecting higher margin assumptions.
📌 Upgrade to BUY, TP RM0.37. We upgrade WENTEL to BUY from HOLD and raise TP to RM0.37 from RM0.23, based on 23x P/E on mid-FY27f EPS, implying 19.4% upside.
Research Team, M+ Global
28 Aug 2026
2August 28, 2026 1.7K 10
