KUALA LUMPUR (April 7): Chin Well Holdings Bhd (KL:CHINWEL) clarified on Monday that the 24% tariff on Malaysia and 46%  tariff on Vietnam announced by President Donald Trump on April 2 will not apply to imports into the US of the group's manufactured fasteners and wire products.

The group said these products have been excluded from the reciprocal tariff plan, as the US had announced on March 26 that such imports would be subject to a separate 25% tariff.

“Barring any unforeseen circumstances, the group is resilient and cautiously optimistic that the imposition of the 25% tariff will not have any significant impact on the group’s performance in the remaining quarters of the current financial year,” Chin Well said in a filing with Bursa Malaysia.

According to Chin Well’s 2024 annual report, its fasteners division — which produces screws, bolts, nuts, threaded bars and other fastening products — contributed about 75% to the group’s total revenue.

The remaining revenue came from the wire division, which manufactures precision galvanised wire, annealing wire, bright wire, hard-drawn wire, polyvinyl chloride (PVC) wire and grill mesh.

For the year ended June 30, 2024 (FY2024), Chin Well sold 29.85% of its products domestically, while 70.15% were exported. Europe and North America were the group’s largest export markets, contributing 34.13% and 25.62%, respectively, to total revenue for the year. Additionally, Vietnam accounted for 1% of the group’s total revenue.

Chin Well noted that exports to both European and North American markets declined by 20.88% and 33.59% year-on-year, respectively, to RM117.17 million and RM87.96 million in FY2024, amid global macroeconomic uncertainties, including the war between Ukraine and Russia, Israel’s war on Gaza, political tensions between the US and China, and other inflationary pressures.

Shares in Chin Well closed 6.5 sen or 7.51% lower at 80 sen on Monday, giving the group a market capitalisation of RM247.8 million. Year-to-date, the counter has fallen over 13%.