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Author: Keelip Danny   |   Latest post: Tue, 30 Jun 2020, 5:15 PM

 

WELLCALL HOLDINGS BHD _ 14th Annual General Meeting (Virtual) and Extraordinary General Meeting (Virtual)

Author: Keelip Danny   |  Publish date: Tue, 30 Jun 2020, 5:15 PM


14th AGM and EGM was held fully virtual yesterday. Without any further explanation, you may refer to below links to access meeting resolution of the AGM and EGM.

https://www.klsescreener.com/v2/announcements/view/3166701

https://www.klsescreener.com/v2/announcements/view/3167427

I’ve recorded the whole meeting process for my easy reference afterwards. All resolutions in the AGM and EGM had been duly passed and I will not discuss further details about that. Instead I’ll share the latest development of the company as well as all question and answers from the shareholders and management. The majority of the questions are regarding Covid-19 impact to the company and current JV progress of the TWSB – kindly refer to my previous post of Wellcall to get more details of the JV initial development. I’ll not list out every question, instead I will compile them into same reply hence this post won’t be too long.

Minority Shareholders Watch Group (MSWG) Questions

Q1: How USA-China trade war, Covid-19 and oil market crash and volatility impact the dynamic of demand and supply and the material cost?

A: Due to the uncertainty of global economy, demand for industrial rubber hoses has been slower. However, the company production capability is ready to meet the demand surge at any point of time (incase of the recovery of demand of hoses). Regarding the material cost, the company monitor raw material inventories at an average inventory level of 3-4 months. This is to enable the company to gauge the appropriate time to purchase at reasonable time. A separate answer to another shareholder’s question regarding Covid-19 was compiled here: the company exports about 90% to more than 70 countries. The impact is at different seriousness level at each market segment, however the company is still receiving orders from overseas. Industrial rubber hoses is needed in almost all industries for transportation and transfer. R&D team is also consistently introduce new product, and improved quality management, as well as enhancement for capital expenditure process. The company is also expecting an negative impact of 15-20% of revenue.

Q2: What is the existing and expanded production capacity of the third plant?

A: The third plant currently operate at a total of 8 production lines. Previously outsourced compounding processes is now taken place in third plant, in order to improved quality management. Third plant is now opeating.

Q3: What is the strength of research and development team in terms of numbers and experience and qualification? How much was spend on R&D per year and as a percentage of revenue?

A: R&D team is led by group MD and has a team of 4 personnels, with experienced based to degree holders from rubber related knowledge background. Spending per year is about RM1.7 million (1% of revenue).

Q4: Revenue has been dropped with a higher gross profit margin at 36% compared t0 32% last financial year. How advanced is the automation process? To what extent has automation reduced the number of workers and improved the revenue generated per head count?

A: The automation process reduces labour headcount and increase product process efficiency. E.g. production is enhanced from 40 metres to 60 metres length for a shorter period of production lead time. Overall in average, headcount per line could be reduced from 10 to 8 per production n line. Revenue generated per head count improved by approximately 5%.

Q5: What is the latest development and the performance of the TWSB JV?

A: JV progressing is now rescheduled affected by the Covid-19. Global caucious approaches has affect global economy as well as international logistic movements. The JV has rented a factory building and currently phasing to an extension of a factory building. The first production line has arrived and the following second line is expected to arrive by the end of August 2020. Due to the implementation of MCO and CMCO, the technical team from Europe is abstained from entering the country, hence installation and fine tuning of machinery is impossible. The whole installation and test run is estimated to span through 2-3 months.

Q6: Referring to Notes to the Financial Statements (Note 11), there is an amount of RM7,353,253.00 of cash management fund. Please elaborate details.

A: It is an Islamic cash management fund with a principal guaranteed amount of RM7.3 million. RM53K is tax exempted interest.

Shareholders’ Questions

While the pre-AGM questions asked are already covered majority by the MSWG, the following is the one excluded from above.

Q: Why Trelleborg does not expand on its own but rather JV with WELLCALL?

A: The JV is to create synergies. Trelleborg focuses on transferring technology knowledge, and WELLCALL cover the manufacturing process entirely.

Q: The company is not require to perform recurrent related party transaction previous financial year. Why now? What is the annual expected transaction amount?

A: The proposed mandate for RRPT is mainly of transaction of revenue in nature, as a handover of operational work-in-progress (WIP) to Global Rubber (new company as per the management). It is also to ensure efficiency, more productive of production process, and reduce the reliance of only 1 or 2 suppliers, so that better risk management can be made to ensure non-disruptive of production. The expected annual transaction amount is RM1 Mil as per the circular to shareholder. However, the company will disclose from time to time.

My Thought on the virtual AGM and EGM

The company first virtual AGM although is a resultant action of the pandemic, however is a good initiative to be practiced in the future. I hope the company may include it as an option as not all shareholders are available physically but timely due to geographical concern. Yet, there’s still a lack of involvement between the shareholders and the management throughout the process. E.g, some question is been avoided (or maybe overlooked, I do not know) – there’s a question asking about rubber material cost and it’s impact to the production.

The answer that I’m seeking is fully conveyed. At the time being, I’m still holding ignorable amount of shares on the company – this is to motivate me to keep the company update timely. As the JV is still in the seeding phase as well as the global economy continuing under the threat of second wave of pandemic, I will not add position into WELLCALL at the moment.

Disclaimer

All elements in this blog post included but not limited to information, facts, numbers, graphs and charts, comments are of the writer’s personal view and are researched to the best accuracy. This post should not be construed as an investment advise or recommendation. Investors should bear his/her own risks and liabilities of financial and legal should he/she make investment in the mentioned financial assets.

Labels: WELLCAL
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#006 _ |Q1 2020 RESULT| _ WELLCAL (7231) 纬钜集团 季度报告

Author: Keelip Danny   |  Publish date: Fri, 6 Mar 2020, 8:56 PM


相距上一篇的简短介绍后的两天,纬钜集团就公布了2020财政年第一季度Q1业绩。不认识这家公司可以先参考之前那篇简介,附上链接。
 
先来看看浓缩版的业绩。
 

SUMMARY OF KEY FINANCIAL INFORMATION
31 Dec 2019

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
31 Dec 2019
31 Dec 2018
31 Dec 2019
31 Dec 2018
$$'000
$$'000
$$'000
$$'000
1 Revenue
39,380
45,466
39,380
45,466
2 Profit/(loss) before tax
11,589
12,582
11,589
12,582
3 Profit/(loss) for the period
9,121
9,504
9,121
9,504
4 Profit/(loss) attributable to ordinary equity holders of the parent
9,121
9,504
9,121
9,504
5 Basic earnings/(loss) per share (Subunit)
1.83
1.91
1.83
1.91
6 Proposed/Declared dividend per share (Subunit)
1.45
1.40
1.45
1.40
   
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7 Net assets per share attributable to ordinary equity holders of the parent ($$)
0.2380
0.2340
 
 
对比上一个财政年同季度营业额下降了13.39%,但是净利却只下降了4.03%,Net Profit Margin占23.16%。
 
每股净利为1.83仙,而公司宣布派发和上个季度一样的1.45仙股息,将近79.23%的派发率。相信接下来业绩保持下去和派发同样股息的情况下将能维持5%以上的高股息率。
 
虽然营业额下降,但是销售成本对比上一个财政年同季度下降幅度更大(17.86%;20Q1-24.668M;19Q1-30.032M),行政成本对比上一个财政年同季度稍微增加8.62%(20Q1-2.798M;19Q1-2.576M)。这也说明公司持续控制成本效果很好。
 
再来看看资产负债表。

 

非流动资产变化不大,主要增加的是一项对联营公司的投资(瑞典特瑞堡集团 Trelleborg Holding AB)4.39M。流动资产现金及银行存款共52.02M,对比上一个季度(19Q4)的52.82M减少了1.51%。

 
股东权益方面,保留盈余增加了4%(20Q1-49.47M;19Q4-47.56M),而债务主要为应付款项,减少了9.35%(20Q1-14.96M;19Q4-16.50M),借贷方面为零,是家零借贷净现金公司。
 
 
再来看看各区域的营业额贡献,基本和上季度比较相差不大,但是对比上一个财政年同季度来看,北美的贡献从占比34%下降至27%,少了将近4.85M。本土的营业额贡献9.54%,依然以出口为主。而管理层表示对比上一个财政年同季度营业额下降是因为北美的橡胶喉管需求放缓,但对比上一个季度则是大部分区域都持续放缓。
 
和2019财政年年报里说的一样,管理层说发展中及发达经济体对橡胶喉管的需求将会逐渐恢复,而生产方面将会优化自动化生产。同时基于供需原理下原材料成本将会浮动不定,也会因外汇的关系而受到影响。全球经济也因之前持续的中美贸易战及现在爆发的新冠肺炎影响,但公司将会利用广泛的顾客网络,提高产能,提供更好的服务以及更多的产品类型来增加竞争力。
 
季报总结
 
新的复合材料喉管生产应该还没那么快投入,加上全球经济影响,下一季度的营业额相信还会继续放缓。而本年度大会将会在这个月30日召开,还是在笔者的主场——马六甲,希望可以去挖一挖管理层的最新发展。而在经历了一个多星期的政变影响下,股价也已经跌破支撑点,以1.05收市。笔者将会再看了股东大会之后再做打算。
 
PE 14.36
EPS 7.31 Sen
DPS 5.70 Sen
DY 5.43%
 
 
免责声明
 
此文仅供参考及笔者私人记录用途,并没有任何买入以及卖出建议,任何投资决定及责任均由投资者自行评估及承担,赚钱的话是阁下眼光独到厉害不用谢谢笔者,亏钱的话是阁下一时大意疏忽不要怪罪笔者,谢谢啦。
Labels: WELLCAL
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#005 _ WELLCAL (7231) 纬钜集团

Author: Keelip Danny   |  Publish date: Sun, 23 Feb 2020, 6:39 AM


 
纬钜集团相信是一家股息派投资者十分熟悉的上市公司,皆因其大方派息的作风,很多投资者都曾经把他加入到组合中。纬钜集团集团旗下子公司主要生产及销售橡胶管水喉,且以出口为主,成立于1996年,于2006上市马来西亚交易所第二板,短短两年内被转至交易所主板。
 
股票代码:7231 (WELLCAL),主板 (Main Board)
公司名称:Wellcall Holdings Bhd
分类类别:Industrial Products & Services


PE 15
EPS 7.40 Sen
DPS 5.65 Sen
DY 5.09%

 

产品,市场及业务分布(资料及数据取至2019年财务报告)

 
主要生产的喉管使用于不同的领域,包挂空气及液体喉管 air and water,油气领域 O&G,焊接 welding,汽车行业 automotive,船务制造 ship building,抗磨损类 abrasion,食品业 F&B,以及化学物 chemical applications。而所生产的喉管都是销售给制造商 manufacturer 及原始设备制造商 original equipment manufacturer。
 
主要91%的营业额来自国外(超过70个国家),仅有9%是来自马来西亚。这也说明纬钜集团是个完全依赖出口的公司,宏观经济以及货币汇率将会直接影响公司业务。而营业额贡献按地理区域分类为以下:-
 
 
可以明显的发现出口至北美国家(美国以及加拿大)的营业额贡献由2016年的大约15%,平均每年增长大约5%的幅度至2019年的30%,其它区域营业额贡献相对浮动不大。年报里并没有进一步说明为何公司加大了对北美的出口。
 
去年,纬钜集团决定扩展产品类型至复合材料喉管,借此提供更多的产品类型以便应付不同的顾客需求。复合材料喉管以金属,聚合物塑胶混合等制造喉管能供给更多的工业用途。纬钜集团于去年年头和瑞典特瑞堡集团 Trelleborg Holding AB 签署了联营合约,借由引入该集团强大的工业技术来生产复合材料喉管。
 
财务分析(资料及数据取至2017及2019年财务报告)
 

 

公司总资产增加了 7.5Mil,主要原因是现金及银行结余增加的关系,而存货及应收款项相对减少了大约 8Mil,据管理层的说法是因为优化了供货时间及账期管理,不需要屯太久的货以及收账更快速。债务方面值得一提的是打从2018年起就清完了所有借贷,余下的 21Mil 债务均为应付款项及税务,是家净现金零借贷公司。

 

 
营业额按年均复合增长率仅为1.98%,净利年均复合增长率为9.85%。而净利率百分比打从2014年开始就维持在20%以上(2018除外),这很好的说明了公司管理十分有效,通过控制成本及开销的方式提高净利率。

每股净利润(EPS)则按年均复合增长率每年增长9.47%,每股派发股息增长5.81%,而股息政策为每年净利自少50%。这也是为什么前些年的股息派投资者喜欢纬钜集团的原因,业务虽然没什么增长,但是胜在股息够稳。

行业未来展望

 

管理层说发展中及发达经济体对橡胶喉管的需求将会逐渐恢复,同时基于供需原理下原材料成本将会提高。财报里公司管理层用了 "global economy remains challenging and uncertain" 的字眼,但公司将会利用广泛的顾客网络,提高产能,提供更好的服务以及更多的产品类型来增加竞争力。同时公司将会继续通过扩张地理区域及顾客群(这里应该是指打入新的国家),再继续扩展现有的领域。

总结

由于公司打从2016年起就交叉起落,虽然营业额上了去,但是净利短期内好像还没什么成长,加上股价于2018的1.60左右下跌到了今天的1.10左右,这就是为什么这家公司近年来沉寂下来了吧。但是相信纬钜集团借着特瑞堡集团的技术能为公司带来新的业务,再让公司重启扩展的势头吧。

股息派投资者或许会继续喜欢这家公司,除了派息相当大方及稳定,近六个财政年都派发超过70%的净利给股东,也定期每个季度派息一次,这让喜欢定期有钱入账户的笔者来说有点小吸引xD。但是由于 PE 方面有点高,所以笔者只是进了几百股来研究研究下,同时会借着市场错误标价的时间点适当的慢慢收集收收股息,等待公司接下来的发展。笔者是有买入的股才会下心思去认真研究,所以才会在这个 PE 也入手。

免责声明

此文仅供参考及笔者私人记录用途,并没有任何买入以及卖出建议,任何投资决定及责任均由投资者自行评估及承担,赚钱的话是阁下眼光独到厉害不用谢谢笔者,亏钱的话是阁下一时大意疏忽不要怪罪笔者,谢谢啦。

 

丹尼理财投资记事本
2020年2月22日
星期六

 

 

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