KUALA LUMPUR (Feb 6): Rakuten Trade has valued ACE Market-bound Wentel Engineering Holdings Bhd at 30 sen.

Wentel is a fabricator of semi-finished metal products and parts, as well as an assembler of finished products.

In a norte on Tuesday, Rakuten Trade said based on Wentel’s (i) substantial 55% growth in fabrication facilities’ built-up area via its new manufacturing plant; (ii) conversion from indirect distribution channels to direct dealing with its major customers; (iii) increasing contribution from Singapore due to its physical presence to facilitate after-sales services, it expects Wentel to register core net earnings of RM17.1 million for FY2024 and RM19.2 million for FY2025.

“Buy with a fair value of 30 sen based on 20x over FY24 EPS, 20% discount due to its small market cap compared to Bursa Malaysia listed peers,” it said.