The company achieved a 61.9% revenue growth rate, yet this is offset by a -20.5% operating margin that suggests significant inefficiencies in managing fixed administrative overhead.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Sales/Revenue | 7.4M | 4.57M | 5.73M | 4.97M | 5.8M |
| Revenue Growth % | 61.93% | -20.26% | 15.42% | -14.34% | - |
| Cost of Goods Sold | 5.04M | 2.73M | 3.75M | 2.83M | 4.66M |
| COGS % of Revenue | 68.1% | 59.64% | 65.46% | 56.9% | 80.38% |
| Gross Profit | 2.36M | 1.85M | 1.98M | 2.14M | 1.14M |
| Gross Margin % | 31.9% | 40.36% | 34.54% | 43.1% | 19.62% |
| Gross Profit Growth % | 28% | -6.82% | -7.5% | 88.18% | - |
| Operating Expenses | 3.88M | 1.73M | 1.32M | 887.85K | 1.24M |
| OpEx % of Revenue | 52.4% | 37.82% | 23.11% | 17.87% | 21.45% |
| Selling, General & Admin | 3.88M | 1.73M | 1.32M | 887.85K | 1.24M |
| SG&A % of Revenue | 52.4% | 37.82% | 23.11% | 17.87% | 21.45% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -1.52M | 115.85K | 655.47K | 1.25M | -106.02K |
| Operating Margin % | -20.5% | 2.53% | 11.43% | 25.22% | -1.83% |
| Operating Income Growth % | -1410.2% | -82.33% | -47.69% | 1282.04% | - |
| EBITDA | -1.35M | 269.14K | 780.96K | 1.36M | 6.76K |
| EBITDA Margin % | -18.23% | 5.89% | 13.62% | 27.34% | 0.12% |
| EBITDA Growth % | -601.56% | -65.54% | -42.5% | 19982.76% | - |
| D&A (Non-Cash Add-back) | 167.93K | 153.29K | 125.49K | 105.04K | 112.78K |
| EBIT | -4.65M | 139.97K | 717.92K | 1.31M | -10.01K |
| Net Interest Income | -16.73K | -20.96K | -22.31K | -22.26K | -25.96K |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 16.73K | 20.96K | 22.31K | 22.26K | 25.96K |
| Other Income/Expense | -3.15M | 3.17K | 40.15K | 32.21K | 70.05K |
| Pretax Income | -4.66M | 119.02K | 695.61K | 1.29M | -35.97K |
| Pretax Margin % | -63.01% | 2.6% | 12.13% | 25.87% | -0.62% |
| Income Tax | 85.21K | 7.41K | 204.21K | 306.54K | -8.95K |
| Effective Tax Rate % | -1.83% | 6.23% | 29.36% | 23.85% | 24.89% |
| Net Income | -4.77M | 111.6K | 491.4K | 978.82K | -27.02K |
| Net Margin % | -64.42% | 2.44% | 8.57% | 19.7% | -0.47% |
| Net Income Growth % | -4373.83% | -77.29% | -49.8% | 3723.23% | - |
| Net Income (Continuing) | -4.75M | 111.6K | 491.4K | 978.82K | -27.02K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -206 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.00 | 0.02 | 0.10 | 0.20 | -0.01 |
| EPS Growth % | -100% | -79.7% | -49.74% | - | - |
| EPS (Basic) | 0.00 | 0.02 | 0.10 | 0.20 | -0.01 |
| Diluted Shares Outstanding | 0 | 4.99M | 4.99M | 4.99M | 4.99M |
| Basic Shares Outstanding | 0 | 4.99M | 4.99M | 4.99M | 4.99M |
| Dividend Payout Ratio | - | - | - | - | - |
Unsustainable operating loss structure
As reported in recent financial disclosures, WFF achieved a 61.9% year-over-year revenue growth rate, signaling rapid market penetration within the Malaysian industrial sector, though the lack of multi-year historical data complicates the assessment of whether this trajectory represents sustainable organic demand or a temporary project-based surge.
The significant top-line expansion suggests that WFF is successfully capturing market share in specialized FRP applications, likely driven by regulatory-mandated industrial upgrades. However, investors should monitor whether this growth is tied to non-recurring infrastructure tenders that may not provide the long-term revenue visibility required for a stable valuation.
Based on the company's reported figures, WFF maintains a 31.9% gross margin, which highlights the inherent value of its specialized chemical-resistant formulations, yet this is starkly contrasted by a -20.5% operating margin that suggests significant inefficiencies in managing fixed administrative overhead and manufacturing capacity.
The healthy gross margin indicates that the company possesses some pricing power in niche high-acid environments where traditional steel alternatives fail. The failure to translate this into operating profit implies that the current cost structure is either bloated by startup-related expenses or that the company is under-utilizing its Shah Alam production facilities.
According to the provided financial data, WFF exhibits a negative operating leverage profile, as the company's -20.5% operating margin indicates that administrative and fixed costs are scaling disproportionately to the 61.9% revenue growth, preventing the realization of economies of scale in its current manufacturing operations.
The disconnect between robust revenue growth and deep operating losses suggests that the company is currently in a high-burn phase, potentially prioritizing market share over immediate profitability. Analysts should investigate whether this is a structural issue related to high fixed-cost absorption or a temporary consequence of aggressive customer acquisition strategies.
With a net margin of -64.42% reported in recent filings, the company faces significant scrutiny regarding the quality of its earnings, as the aggressive revenue growth appears to be heavily subsidized by capital, raising concerns about the long-term viability of its current project-based business model.
Short-sellers would likely focus on the potential for aggressive revenue recognition through percentage-of-completion accounting, which may be inflating top-line figures while cash flow remains strained. The reliance on parent company support and the lack of historical profitability suggest that the current business model may require a fundamental pivot to achieve self-sustaining operations.
Quick answers to the most common questions about buying WFF stock.
For fiscal year 2025, WF Holding Limited Ordinary Shares (WFF) reported total revenue of $7.4M. This represents a 27.7% increase compared to $5.8M in 2021.
WF Holding Limited Ordinary Shares (WFF) reported a net loss of $4.8M for the fiscal year ending 2025.
WF Holding Limited Ordinary Shares (WFF) reported an operating income of $-1.5M, resulting in an operating profit margin of -20.5%. This margin reflects the operational efficiency of the business before interest and taxes.
WF Holding Limited Ordinary Shares (WFF) generated $2.4M in gross profit for the year, representing a gross profit margin of 31.9%. This demonstrates the company's core pricing power and production efficiency.