KUALA LUMPUR (April 14): Wentel Engineering Holdings Bhd (KL:WENTEL) expects a “busy year” ahead, supported by resilient demand amid heightened global security concerns, as well as contributions from its upcoming plant.

Demand for security-related equipment remains strong, group chief executive officer Chuah Chong Syn said, adding that the company expects to push for better output this year. Wentel derives over 65% of its revenue from security screening equipment.

In addition, the company’s new plant in Kempas, Johor, which is expected to commence operations in the second half of the year, will further boost production capacity, positioning the group for stronger revenue growth from 2026 onwards.

“Capacity for key processes such as laser cutting, bending and welding will increase by 60% to 80%, and will start contributing to revenue this year,” Chuah said during a media briefing on Wentel’s FY2025 results.

Wentel, a metal fabrication company, is principally involved in the manufacture of precision components for semiconductor equipment and security scanners. It also provides metal fabrication services to computer numerical control (CNC) machine manufacturers and medical device producers.

For the full year ended Dec 31, 2025 (FY2025), net profit jumped more than 53% year-on-year to RM23 million from RM15 million, while revenue rose nearly 27% to RM142.7 million from RM112.4 million.

By segment, fabrication of semi-finished metal products remained the largest revenue contributor, rising more than 30% to RM108.7 million in FY2025 from RM83.5 million a year earlier.

Fabrication of metal parts increased nearly 14% to RM26.1 million, while assembly of finished products rose 32% to RM7.88 million.

Meanwhile, Chuah said the ongoing conflict in the Middle East has had only a limited impact on operations so far, although some supply chain delays have emerged.

“The main impact has been on logistics and lead times, particularly for shipments from Europe to Malaysia, where transit times may be extended by more than a month due to rerouting through safer channels,” he said.

Chuah also acknowledged that rising oil prices have led to higher logistics expenses, but said the impact remains not significant relative to overall costs.

“Logistics is a small portion of total value, so while costs are higher, it is not materially affecting margins,” he said, adding that foreign exchange movements have also had only a limited effect.

Separately, executive director Freddy Wong noted recent geopolitical tensions have unsettled markets, but the impact on Wentel’s business has so far been limited.

He said the group’s exposure to the security and precision metal fabrication segments positions it defensively, with potential upside over the longer term.

Wong also said Wentel’s upcoming facility is expected to scale into a full-fledged plant over the next three to five years, supporting its next phase of growth.

At the time of writing, Wentel’s share price was unchanged at 23 sen, giving it a market capitalisation of RM264.5 million.