Posted by dragon328 > 2022-10-28 12:06 | Report Abuse

I was hoping to collect towards 1.02 but it looks like no chance for now, so just buy at 1.12

Posted by Nepo > 2022-10-28 12:19 | Report Abuse

yes, I actually waiting for RM 0.88, but seem no hope
last night i watched Botak Chen's youtube explained the external auditor issue, i will post the link here to share with those who are interested.
Because of that youtube i jump in today as it seems no hope to plummet to RM 0.88...

Posted by Nepo > 2022-10-28 12:22 | Report Abuse

https://www.youtube.com/watch?v=jI5IgjI_Fxo&t=29s

Posted by avenirlearning > 2022-11-12 10:02 | Report Abuse

https://www.avenir-learning.com/wellcall-holdings-bhd-wellcal-analysis/ Wellcall Holdings Bhd WELLCAL – Higher revenue to be offset by temporary cost pressures

Posted by dragon328 > 2022-11-12 15:10 | Report Abuse

thanks avenirlearning for the article above. As can be seen in the charts in the article, latex costs have come down by 15% to 20% in Jul-Sep 2022 quarter from the June 2022 quarter.
About 60% of Wellcall's cost of sales is raw material cost, so if I take a 15% reduction in latex costs in Sept qtr, the company cost of sales will have dropped by RM31.9m x 60% x 15% = RM2.9 million, and profit before tax will have increased by the same.

Posted by dragon328 > 2022-11-12 15:12 | Report Abuse

91% of Wellcall revenue is export based. As ringgit has depreciated by over 10% against US dollars in Q4FY2022, so revenue for Q4 will have increased by RM47.1m x 10% = RM4.7 million which will flow thru to the bottom line almost entirely.

Posted by dragon328 > 2022-11-12 15:17 | Report Abuse

So I forecast that Wellcall will post a record quarterly pretax profit of close to RM13.9m + (2.9+4.7)x80% = RM20.0 million for the upcoming Q4FY2022.

I assume that Wellcall shall be able to realise 80% of the benefits from lower latex costs (as the company might have bought forward some at higher prices) and weaker ringgit (as the company might some negative effect in entry costs from the weaker ringgit).

Posted by dragon328 > 2022-11-12 15:19 | Report Abuse

I have not yet factored in any contribution from its JV with Swedish company Trelleborg in producing composite hoses which hold much hopes in driving long term growth of the company

Posted by Nepo > 2022-11-30 19:13 | Report Abuse

Latest QR result maintain
Still look ok

Posted by dragon328 > 2022-11-30 20:36 | Report Abuse

Earnings would have increased by 4% y-on-y if not for a one-off impairment loss. Good thing is this impairment is non cash, with operating cashflows remain strong at RM38.9 million for the year, and net cash holding of RM62 million with no debt.

Posted by dragon328 > 2022-11-30 20:37 | Report Abuse

I have over-estimated the positive effect of weak ringgit and lower input costs.

Apparently the management chose to pass on the benefits of lower input costs and weaker ringgit to the customers in order to retain long term customers.

Posted by observatory > 2022-11-30 22:57 | Report Abuse

Revenue at RM47m is roughly the same as last quarter and a year ago. This is due to "resheduling delivery of shipment from certain customers". I suspect some of their customers have inventory problem.

Wellcall has also fully impaired its investment in the JV with Trelleborg. This happened after posting 12 quarters of losses probably due to depreciation. I suspect the JV has not generated any revenue.

One good thing is the company returns all unused cash to shareholders. Payout ratio was above 90% for most of the years. It reached 102% in FY21 and 105% in FY22. Current dividend yield is 5.8%.

However the flipside of high payout is limited growth. Excluding the effect of foreign exchange, net profit has been fluctuating in the range of RM30m to RM37m since FY2015.

Posted by dragon328 > 2022-12-01 15:14 | Report Abuse

@Observatory, you are probably right that Wellcall may have fully impaired its investment in the JV with Trelleborg, which is a disappointment.

The good thing is that the amount of investment is not big.

Agree that Wellcall's growth will be tepid in near term, as the JV does not take off.

Will need to wait for other JV or breakthrough in technology for the next quantum leap in growth

Posted by amateurJR > 2022-12-01 17:03 | Report Abuse

One of my most steady stocks. Still holding at paper gain and consistently get dividends while sleeping well every night

Posted by Growthseeker > 2022-12-02 11:02 | Report Abuse

somewhat a disappointing QR but still a good dividend stock to hold....should be brighter days ahead, hopefully no more impairment loss again...price still holding up after a lackluster QR, hope it will continue to move upwards.

Posted by StevenKhoo111 > 2022-12-05 20:15 | Report Abuse

Good in dividend but growth ? Hopefully can make it both <3

Posted by AhKeat2018 > 2023-01-06 13:31 | Report Abuse

When can back to 1.20 level?

Posted by amateurJR > 2023-01-06 16:47 | Report Abuse

Haha kena trapped?

Posted by 521onepiece > 2023-01-23 00:47 | Report Abuse

who are its direct competitors?

Posted by Knownfact > 2023-02-18 19:52 | Report Abuse

Anyone attending the coming AGM?
Is it unusual to pay non executive directors monthly fees of up to Rm1.5mil

Posted by amateurJR > 2023-02-25 22:40 | Report Abuse

Another round of consistent earning & dividend

Posted by Nepo > 2023-02-27 16:07 | Report Abuse

Prospect
The Board is optimistics that the Group will remain resilient and able to sustain its market share and positioning despite the challenges ahead in the
global economy. The Group will continue to manage its operating costs and market share by responding swiftly to the fluctuation of supply and demand
chain mechanism especially the elasticity of pricing arising from the freight and raw material costs. Nevertheless, the Group is positive towards the high
demand for low and medium pressure industrial rubber hose that enables the Group to sustain and widen its market base positioning.
Barring of unforseen circumstances and the vibrancy of the global economy sentiment, the Board believes that the Group's future prospects in the
financial year ending 30 September 2023 continues to remain positive especially with the continuation of gradual increase in the momentum of global
demand for industrial rubber hoses.

Posted by Fundamental Trader > 2023-03-07 09:55 | Report Abuse

DEBT LOW ☑
CASH LIQUIDITY ☑
REVENUE GROWTH ☑
PROFIT GROWTH ☑
FREE CASH FLOW GROWTH ☑
UNDERVALUE ☑
TREND ☑
LOW RISK/REWARD SETUP ☑

Posted by amateurJR > 2023-03-08 11:18 | Report Abuse

Happy to see fundamental trader is here

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2023-03-30 16:08 | Report Abuse

Security LastPr PE DY% Divcts ROE ttm-marg
WELLCAL (Industrial Materials) 1.12 16.26 6.3 7 28.71 18.1

Posted by Nepo > 2023-04-07 06:34 | Report Abuse

https://www.klsescreener.com/v2/news/view/1130709

Posted by CFTrader > 2023-05-30 18:19 | Report Abuse

Huh ... they deliver good result when people least expecting it.
Still holding it with a loss, dividend as compensation of holding cost.

Posted by DestinyL > 2023-05-30 22:11 | Report Abuse

Good set of results, increased dividend distribution

Posted by amateurJR > 2023-06-01 09:20 | Report Abuse

Steady pun bibi once again. Still holding with a low cost. Earn both share price and divided at the same time

Posted by UnicornP > 2023-06-05 14:11 | Report Abuse

Wellcall looks pretty much like BPplas in May '21 provided it can shoot pass 1)1.20 and 2)1.25

Posted by Lim Yap > 2023-06-06 20:57 | Report Abuse

@dragon238
why do you day Wellcall investment in the JV with Trelleborg is a disappointment ? I can't find info in Annual Report. Can elaborate a bit ? thanks

Posted by Lim Yap > 2023-06-06 20:58 | Report Abuse

sorry, its @dragon328

Posted by dragon328 > 2023-06-07 11:22 | Report Abuse

@Lim Yap, I saw a note in CIMB research report dd 9 Dec 2022 on Wellcall, that said that Wellcall recognised an impairment loss of RM2.9 million Q4FY2022 for its JV with Trelleborg. Wellcall was reported to have invested an initial capital of RM4.5 million in this JV which has been bleeding at RM1.0m to 1.5m every year since Jun 2021. I am not sure whehter Wellcall made any further impairment on this JV after Q4FY2022, but at least it has impaired 64% of its investment.

Posted by dragon328 > 2023-06-07 11:24 | Report Abuse

It was a disappointment as initially I thought this JV was promising in making breakthroughs in composite hoses which would enable multi-year growth to Wellcall, but it has so far not made any significant breakthrough.

Posted by dragon328 > 2023-06-07 11:24 | Report Abuse

If you have more info on this JV and its prospects, please share.

Posted by Lim Yap > 2023-06-07 12:10 | Report Abuse

@dragon328 thank you for your reply

Posted by Lim Yap > 2023-06-07 12:12 | Report Abuse

I found this link after posting the question to you, which give some info (see the QnA of 17th AGM)...... hope it helps
https://www.wellcallholdings.com/General_Meeting.aspx

Posted by Lim Yap > 2023-06-07 12:13 | Report Abuse

the JV does not look good.... products can't compete with competitors' pricing

Posted by amateurJR > 2023-06-07 13:21 | Report Abuse

Go check back past AGM, this JV requires at least 3 yrs product testing stage la. If u expect to see robust profit within short period, this company doesn't suit your investment,

Posted by dragon328 > 2023-06-07 15:41 | Report Abuse

@amateurJR, you seem to be more familiar with this product development. Now it is already 2 years past since the JV started in Jun 2021. When do you expect they will have a breakthrough in new composite products?

Posted by UnicornP > 2023-07-12 14:40 | Report Abuse

1.18 at last breached...

Posted by UnicornP > 2023-07-14 16:37 | Report Abuse

Bought @ 1.19 today.

Posted by Pinky > 2023-08-21 17:55 | Report Abuse

Dividend increased from 1.6 sen to 2.2 sen. Nice!

Posted by dragon328 > 2023-08-21 19:39 | Report Abuse

excellent set of quarterly result!!

Net profit jumped up 70% y-on-y and record dividend possible for this year

Posted by UnicornP > 2023-08-21 19:44 | Report Abuse

Latest quarter proved that there is indeed growth for industrial rubber hose.
https://www.globenewswire.com/news-release/2023/04/06/2642933/0/en/Industrial-Hose-Market-Size-to-Reach-USD-20-67-Billion-by-2028-Says-The-Brainy-Insights.html

Posted by ooihk899 > 2023-08-21 20:14 | Report Abuse

This FY divy will be more than 7 sen. Hopefully next FY divy will be more.
🤑🤑🤑

Posted by Pinky > 2023-08-21 21:29 | Report Abuse

Hohoo dragon328 also here. Let's hope Wellcall will be our YTL 2.0! 😋

Posted by dragon328 > 2023-08-22 08:51 | Report Abuse

hello Pinky, I have been here since 2022. Lets hope Wellcall can catch up to RM1.80

Posted by Pinky > 2023-08-22 09:03 | Report Abuse

Yea dragon328 I can see this becoming one of my cash cows 🤗

Posted by katara > 2023-08-22 09:38 | Report Abuse

good rubber hose