Wong Engineering Corporation Berhad Reports Narrowed Losses and Revenue Growth in Q1 FY2026

Kuala Lumpur, 25 March 2026 – Wong Engineering Corporation Berhad (WECB) has released its unaudited financial results for the first quarter ended 31 January 2026. The Group showed a marked improvement in its bottom line, although it remains in the red, and reported robust revenue growth driven by its core Precision Engineering segment.

Key Financial Highlights

• Revenue: RM13.79 million for Q1 FY2026, up 39% from RM9.89 million in Q1 FY2025.
• Loss Before Tax: RM2.20 million, a significant improvement from the RM3.57 million loss in the prior year’s corresponding quarter.
• Net Loss Attributable to Shareholders: RM2.19 million for the quarter, compared to RM3.57 million previously.
• Basic Loss Per Share: (0.87) sen, versus (1.43) sen previously.
• Total Equity: RM75.53 million as at 31 January 2026, down from RM77.72 million at 31 October 2025.
• Cash and Cash Equivalents: RM7.28 million, up from RM5.22 million at 31 October 2025.
• Net Asset Per Share: RM0.30.

Segmental Performance

• Precision Engineering: Revenue increased by RM3.90 million, driven by higher demand and shipments to the semiconductor sector. The segment’s loss before tax narrowed by RM1.20 million to RM1.97 million, attributed to higher sales and improved factory utilisation, despite adverse forex movements due to Ringgit appreciation.
• Construction & Property Development (PD): No revenue was recorded this quarter, but losses narrowed to RM0.42 million, mainly from the share of loss in an associate, which also saw improvement year-on-year.
• Investment Segment: No revenue was recorded, but profit before tax rose due to higher unrealised fair value gains on other investments.

Balance Sheet and Liquidity

• Total Assets: RM126.63 million (down from RM132.72 million at prior year-end).
• Borrowings: Total loans and borrowings (current and non-current) stood at RM35.98 million.
• Treasury Shares: 2,189,800 shares valued at RM910,629 held as treasury shares, unchanged during the quarter.
• Capital Commitments: RM43,000 contracted for plant and equipment purchases, not yet recognised in the accounts.

Cash Flow and Operating Activities

• Net Cash from Operating Activities: RM4.25 million, a turnaround from an outflow of RM0.43 million in Q1 FY2025.
• Net Cash Used in Investing Activities: RM0.05 million, mainly for purchase of plant and equipment.
• Net Cash Used in Financing Activities: RM2.03 million, reflecting repayments on borrowings and lease liabilities.

Other Notable Items for Shareholders

• No Dividends: No interim dividends were declared for the quarter.
• No Share Buybacks or Cancellations: There were no new treasury shares purchased or cancelled.
• No Significant Related Party Transactions: Only minor recurring related party transactions, including rental charges and professional fees, were reported.
• No Material Litigation: The Group is not engaged in any material litigation.
• Corporate Guarantees: The Company has provided corporate guarantees totaling RM67.92 million for banking facilities, with RM35.68 million utilised as at the reporting date.
• No Post-Balance Sheet Events: No material items or events have arisen since the balance sheet date.

Market and Sector Outlook

The Group highlighted a positive outlook for Malaysia’s GDP (4-4.5% growth projected by the Ministry of Finance) and a strong global semiconductor market, with the Semiconductor Industry Association and World Semiconductor Trade Statistics projecting industry revenue to approach USD 1 trillion—a 25% increase. Total equipment capital expenditure is expected to grow by 9% globally. However, WECB remains cautious regarding potential headwinds including Middle East tensions, rising input costs, possible trade disruptions, and foreign currency fluctuations, all of which could affect future performance.

Material Risks and Price-Sensitive Information

• Narrowing Losses and Revenue Growth: The substantial reduction in losses and strong revenue growth could be viewed positively by investors and may support the share price, although the Group remains loss-making.
• Exposure to Forex Risk: The Group’s performance is sensitive to Ringgit movements, particularly against the US Dollar, as indicated by both realised and unrealised forex losses this quarter (totaling over RM233,000).
• Capital Management: The Group’s cash position has improved, and borrowings are being reduced, improving financial flexibility.
• Sector Exposure: The Group’s fortunes are closely tied to the semiconductor and E&E sectors; any changes in sector outlook may have a direct impact.
• No Dividend Declaration: The absence of dividends may disappoint income-focused investors.
• No New Corporate Developments or Material Litigation: There are no ongoing or pending corporate actions or legal matters that could materially impact valuation in the near term.

Summary

Wong Engineering Corporation Berhad’s Q1 FY2026 results show a significant improvement in financial performance, primarily from its Precision Engineering segment. While the Group remains loss-making, the narrowing losses, improved operating cash flows, and sectoral tailwinds in the semiconductor industry are encouraging. Nonetheless, the continued absence of dividends and caution on external risks may temper investor enthusiasm.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own due diligence or consult licensed financial advisors before making investment decisions. The information above is based on the company’s unaudited quarterly report and may be subject to further revision.

View WONG ENGINEERING CORPORATION BERHAD Historical chart here