Should Investors Invest in MClean Technologies Now?

As MClean Technologies published their FY2024 Q3 financial results, the company’s third consecutive profitable quarter since the change of management, Datuk Dr. Terence Yea had reflected in their share price with a 8.51% spike. Nevertheless, there are more to the company beyond the results.

Recently, MClean Technologies had announced their acquisition of Wetotal Engineering S/B (“WTE”), a very smart move to enhance their revenue and profitability going forward, given WTE alone had achieved RM2.0 million in profit before tax (“PBT”) in 2023.

For those who do not know, MClean Technologies had 4 main revenue segment, namely the Hard Disk Drive (“HDD”) where the company is serving company S and Company W (both are world leading HDD players), which contribute up to 40% of the company’s revenue, then followed by electronics to company SE by 20%, another 20% on semiconductors, and lastly another 20% in oil and gas industry.

WTE on its own, a plastic injection component supplier, is having a strong proposition in the electronics and automotive industry. This acquisition can open doors for MClean to venture into the automotive industry, while enhancing their electronics products and solutions offerings.

Going forward, MClean Technologies is seemingly aiming to become the Tier 1 supplier in the market, while advancing towards achieving a significant increase in revenue to over RM60.0 million, according to some analysts’ guidance.