Posted by CFTrader > 2018-02-06 16:47 | Report Abuse

all hail JPMorgan

Posted by fhis > 2018-02-06 16:53 | Report Abuse

tomorrow will fly high

Posted by omgimnoob > 2018-02-06 21:47 | Report Abuse

omg... why so strong? Wei Ge really strong!

Posted by omgimnoob > 2018-02-06 21:59 | Report Abuse

OMG CFTrader, dont advertise somemore... its too strong now... I still accumulate not enough

Posted by crash8593970308 > 2018-02-09 23:24 | Report Abuse

sold geshen bought wellcal

Posted by fhis > 2018-02-13 15:57 | Report Abuse

buy more wellcal.. it is coming.....buyer is out...

Posted by fhis > 2018-02-13 16:00 | Report Abuse

1.60 will be taken out very soon...once it started its engine

Posted by fhis > 2018-02-13 16:36 | Report Abuse

tomorrow will be wellcal day...let's see if it can break 1.60 today...

Posted by fhis > 2018-02-13 16:43 | Report Abuse

wellcal..wellcal

Posted by fhis > 2018-02-13 16:47 | Report Abuse

hope for 1.80 tomorrow..

Posted by fhis > 2018-02-13 16:52 | Report Abuse

not bad, 1.60 closing.....tomorrow will have some nice show...

Posted by fhis > 2018-02-13 17:10 | Report Abuse

5 months high 1.66 to break easily tomorrow...and head for 1.80...

Posted by omgimnoob > 2018-02-14 09:01 | Report Abuse

1.30 - 1.40, wahhh... very good target price. Who is attending their AGM?

Posted by fhis > 2018-02-14 15:12 | Report Abuse

quite sad... it didnt fly this morning as expected but i think it will come anytime from now...just someone is placing big block at 1.60 for some reason...just watch out when this big block is taken out.. hopefully will be today...

Posted by fhis > 2018-02-19 10:51 | Report Abuse

Today sure fly pass 1.60...take note..still low

Posted by fhis > 2018-02-19 11:12 | Report Abuse

Company Profile Wellcall Holdings Berhad is Malaysia’s largest industrial rubber hose manufacturer. Originally serving for three major application markets, the company has scaled up its markets to more than six, including the air & water, welding & gas, oil & fuel, automobile, ship building, as well as food & beverage.

Investment Merits
1. Recovery in Global Economy Boosted Sales
- After a rough 2016 year, Wellcall has finally posted exciting results for FYE 2017. Riding on global recovery following better oil prices, demands for industrial rubber hose are expected to follow suit.
- While the overall effect has yet to remain unknown, the company has in fact performed better with 18.32% and 16.41% surge in the revenue and net profit respectively. The better performance is due to higher sales achieved on the back of higher demands from its clients.
- As almost 90% of its sales are derived from export markets, the recovery in global economy would provide the company a better earnings visibility moving forward.
- Wellcalls’ export markets spread quite evenly across developed and emerging markets, and this would help to balance out the concentration risk.

2. Attractive Dividend Yield
- Wellcall has been giving out dividend since its listing, and has a dividend policy to distribute a minimum 50% of its net profit annually.
- For FYE 2017, the company has paid dividends of 7.7 cents, equivalent to a dividend yield of 4.97%, which is considered high among mid and small cap peers.
- If we were to compare the company with gloves manufacturers which also use nitrile rubber as raw materials, we would see Wellcall’s dividend yield would be the best, with others mostly stay at 1% -3%.

3. Gearing Up for Production and Efficiency
- It is known that Plant 3 of the company has yet to reach full production capacity, giving it more room to grow moving forward.
- We are aware that the plant has opted for more automation as compared to the previous two, potentially driving down the cost but also improving the quality and production efficiency.
- The company is said to have its Plant 2 for higher capacity and automation upgrading.

Posted by fhis > 2018-02-19 11:14 | Report Abuse

Financial Highlights


The forecast for FYE 2018 is derived from a conservative growth rate based on the company ’s previous performance. However, the outlook for industrial hose manufacturing sector remained positive due to orders start picking up again after having slowed down in 2016.




(RM Mn) Forecasts Period Ending September 30 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018F Total revenue 136.83 154.21 131.53 146.37 158.33 134.49 159.13 171.9 Cost of goods sold Cost of goods sold (108.65) (115.18) (91.70) (99.20) (101.94) (83.00) (100.1) (106.6) Gross profit 28.18 39.03 39.83 47.17 56.39 51.49 59.03 65.31 Operating expenses / income Other operating income 3.10 2.53 3.57 3.63 6.45 2.38 3.46 3.95 Selling and distribution costs (4.02) (4.27) (4.06) (4.23) (3.96) (3.71) (4.12) (4.47) Administrative costs (4.67) (6.06) (6.26) (7.60) (9.52) (9.18) (9.18) (10.31) Other operating expenses - - - - (0.12) (0.21) (0.43) (0.52) Total operating expenses / income (5.59) (7.80) (6.75) (8.20) (7.15) (10.72) (10.27) (11.34) EBIT 22.59 31.23 33.08 38.97 49.24 40.77 48.76 53.96 Interest Interest expense (0.26) (0.25) (0.23) (0.26) (0.48) (0.98) (0.93) (1.08) EBT 22.33 30.98 32.85 38.71 48.76 39.79 47.83 52.88 Income tax expense (7.01) (7.62) (8.15) (9.25) (7.21) (8.47) (11.37) (12.69) Net Income (as Reported) 15.32 23.36 24.70 29.46 41.55 31.32 36.46 40.19 Earnings per share (EPS) Basic 3.08 4.69 4.96 5.92 8.34 6.29 7.32 8.07 Margins Operating margin 16.51% 20.25% 25.15% 26.62% 31.10% 30.31% 30.64% 31.40% PBT margin 16.32% 20.09% 24.98% 26.45% 30.80% 29.59% 30.06% 30.77% Net margin 11.20% 15.15% 18.78% 20.13% 26.24% 23.29% 22.91% 23.39% Actuals Consolidated Income Statements Q-o-Q Y-o-Y % % Revenue RM Mn 32.30 39.01 43.62 11.82% 35.05% Cost of sales RM Mn (20.06) (24.96) (27.65) 10.78% 37.84% Gross profit RM Mn 12.24 14.05 15.97 13.67% 30.47% Other operating income RM Mn 0.64 0.06 0.25 331.03% -60.94% Administrative expenses RM Mn (2.84) (2.29) (2.15) -6.11% -24.30% Selling and distribution expenses RM Mn (1.02) (1.02) (0.96) -5.88% -5.88% Other operating expenses RM Mn - (0.03) (0.40) 1279.31% Profit from operations RM Mn 9.02 10.77 12.71 18.02% 40.91% Finance costs RM Mn (0.14) (0.23) (0.21) -8.70% 50.00% Finance income RM Mn 0.24 0.23 0.26 13.04% 8.33% Profit before tax RM Mn 9.12 10.77 12.76 18.49% 39.91% Taxation RM Mn (1.29) (2.68) (2.88) 7.46% 123.26% Net profit RM Mn 7.83 8.09 9.88 22.14% 26.18% Minority interest RM Mn - - - PATMI RM Mn 7.83 8.09 9.88 22.14% 26.18% EPS sen 1.57 1.62 1.98 22.14% 26.18% Margins Operating margin 27.93% 27.61% 29.14% PBT margin 28.24% 27.61% 29.25% Net margin 24.24% 20.74% 22.65%

Posted by fhis > 2018-02-22 03:48 | Report Abuse

Great...more to come

Posted by Christiano88 > 2018-02-26 14:11 | Report Abuse

result out liao

Posted by sleang > 2018-02-26 16:49 | Report Abuse

Management indicated that costs to escalate further up...

Posted by sleang > 2018-02-26 16:50 | Report Abuse

wonder if JP Morgan's TP 2.1 still valid..

Posted by Dartmaster > 2018-02-26 17:08 | Report Abuse

this shows that JP Morgan is managed by a bunch of goons. Earnings deteriorated same as MEDIA that they have been busy buying up. They only know one thing control and buy up enough shares and pump and dump

Posted by CFTrader > 2018-02-26 23:28 | Report Abuse

@Sleang, do you know/inquiry about which type of cost escalate further up during the AGM meeting ?

I googled the price of natural rubber (which is their main cost) , it appears to be downtrend and i cannot brain the logic of "increase cost" ...

If they suffered from increasing cost due to Factory 3 efficiency then that is a temporary problem... but if their margin is eroded .... well ... let's say that their margin is one of the prized jewel that gives them superb valuation....

Sincerely
CFTrader

Posted by sleang > 2018-02-27 10:49 | Report Abuse

Nope, management did not mention what costs are those...its in the Report...share price touching 1.51...will climb back to 1.55 to pre-results level??

Posted by smktta > 2018-02-27 13:49 | Report Abuse

up up up

Posted by CFTrader > 2018-03-02 17:19 | Report Abuse

omgimnoob, i mean, what i noticed is rubber is downtrend on Sep17 to Dec17 , and if not mistaken, SMA20 is their main cost (?) which compose of 50%...

So i wonder why the report recently suffered from increased cost (?) Just want to clarify my doubt. :)

Posted by LimKL1 > 2018-04-17 10:45 | Report Abuse

wan fen gan xie

Posted by orochi_y > 2018-04-17 13:34 | Report Abuse

so the price today is good to enter? RM1.30

Posted by CFTrader > 2018-05-01 13:03 | Report Abuse

good company doesn't sell cheaply .

But when it is priced cheaply , be sure to grab it :)

Sincerely
CFTrader

Posted by loonginv > 2018-05-24 17:39 | Report Abuse

worst result since 2013 Q2 ..!!!!!

Posted by leelc70 > 2018-05-24 18:26 | Report Abuse

lower dividend payout

Posted by CFTrader > 2018-05-31 17:25 | Report Abuse

1. Cost of Production is increased .... Why ?
- Rubber price is downtrend, but it is not the major cost of production.
- Synthetic Rubber consumption is in fact, higher (5 times more) consumption than natural Rubber.
- Synthetic Rubber price is on increasing trend for the past 9 month.
- Hence, WELLCAL factored in the cost that bought on the higher side.
- Forex issue.

2. Factory 3 issue.
- It is not simple as improve production volume by 70%.
- Factory 3 is divided into 3 parts.
- Part 1 : Mandrel hose production line. - fully utilized
- Part 2 : Spiral hose production line - unsure of utilization rate, they need to secure more customer (customer in this field tends to be loyal/recurrent, hence wellcall claimed that they need extra effort to penetrate this market )
- Part 3 : For sudden demand surge / change in the trend. Currently vacant.

3. Workforce issue.
- has no shortage of foreign worker issue.
- Foreign worker compose of 50% of workforce.
- No problem with KDN.

4. Revenue Growth
- Trailing 6 month order is increased by approximate 7%-8%.
- Largest market is category is Oil,Gas,Water,Air hose production - compose of 60% of the sales.
- Oil and Gas - compose of approximate 40%-45% of the category.
- They securing some US client that involving in the O&G company where they will place recurrent order every 4 month.

Sincerely
CFTrader

Posted by ViWizard > 2018-07-26 09:26 | Report Abuse

oppp drop

Posted by xiaojie88 > 2018-08-27 17:32 | Report Abuse

improved slightly...

Posted by apolloang > 2018-08-27 17:34 | Report Abuse

no good lah tomoro open will down but dunno can rebound later?

Posted by CFTrader > 2018-08-28 18:26 | Report Abuse

Ermmm .... Revenue is indeed increased by 8% as CFO informed me.
Revenue stood at 42M
GP is 12.8M (compared to previously 14M
Profit From Operation Exclude One Off Gain is 9.394M vs 10.7M

Margin compression is real ...
In summary :

True Earning : 1.36c
Forex Gain : 0.21c
Hence total EPS : 1.57c

Posted by soon9913 > 2018-09-05 19:10 | Report Abuse

get the dividend first

Posted by Yael Jasper > 2018-09-06 10:41 | Report Abuse

Very confident stock, good to invest it and then can buy more car HAHAH!

Posted by Vincent_8316 > 2018-09-07 16:24 | Report Abuse

Just invested 7000 share

Posted by madguy > 2018-10-25 10:41 | Report Abuse

this stocks all so quite ?
where u all ??

Posted by YKLIEW > 2018-10-25 12:03 | Report Abuse

Better be quiet and steady during these bear days. At least don't plunge.. Ha ha

Posted by CFTrader > 2018-11-26 17:32 | Report Abuse

EPS 1.98c vs 2.04c
Single tier dividend 1.4c vs 1.55c

There is almost 1m of forex gain (i suppose) covered the hike of the material price...
Overall good dividend :)

Sincere,
CFTrader

Posted by CFTrader > 2019-02-19 10:04 | Report Abuse

omgimnoob, you can contact Wellcall's IR ... they usually don't respond to email, as quote from the guy "I'm scared that I'm giving the wrong impression by writing, I would like to clarify through a phone call" .

ps. if you planned to call them, can you inquiry about what they going to achieve with the new JV ? I am lazy to call them , still in CNY mode . :P

SIncerely
CFTrader

Posted by James Yeo > 2019-02-26 11:03 | Report Abuse

Wellcall Holdings Bhd has a track record of consistent dividend payouts over last 5 years. Check out other 2 similar stocks at https://klse.i3investor.com/blogs/small_cap_asia/195122.jsp

Posted by L2earn > 2019-02-26 12:47 | Report Abuse

https://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=7231
http://malaysiastock.biz/Company-Announcement.aspx?id=1122940
EPS 1.91c
Dividen 1.40c

Posted by CFTrader > 2019-02-26 14:50 | Report Abuse

Investment grade company, talked to their management team before when M.A.S. is formed.
I like their S.O.P. in doing business .

To me, there are 2 "well"ness in Bursa, one is WELLcall, while the another one is chinWELL hahaha.

Sincerely
CFTrader

Posted by Manekineko > 2019-02-26 15:27 | Report Abuse

Thanks @ James Yeo and CFTrader. Did my homework, the fundamentals are solid. Also think the JV is a catalyst if they execute well. Now in my watchlist.

Posted by Investeye > 2019-02-26 16:32 | Report Abuse

The Q result is OK. With the prospect of join venture with Trelleborg and consistency to payout dividend quarterly. It is worth to look into this counter for mid and long term..

Posted by Tanleechoo > 2019-03-02 23:03 | Report Abuse

Those Malaysian co owned n run by Taiwanese are good... Chinwell n wellcall .. PIe .. uchitec . FPI n ySpsah .. can sleep well when invest in the co

Posted by CFTrader > 2019-03-19 14:32 | Report Abuse

Taiwanese-run company in Bursa , they will have a similar trait. They will earn money, then declare the profit as dividend, so that they can enjoy it (as most of them are substantial shareholder)

Instead of Malaysian-run company that declare fat renumeration and don't declare a single shit dividend to shareholder, Taiwanese run company is very suitable for those who invest for dividend (and future dividend growth) .

Sincerely
CFTrader