CHIN WELL HOLDINGS BHD

KLSE (MYR): CHINWEL (5007)

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Last Price

1.68

Today's Change

+0.02 (1.20%)

Day's Change

1.67 - 1.68

Trading Volume

75,500

Overview

Market Cap

503 Million

NOSH

300 Million

Avg Volume (4 weeks)

150,485

4 Weeks Range

1.61 - 1.79

4 Weeks Price Volatility (%)

38.89%

52 Weeks Range

1.22 - 1.98

52 Weeks Price Volatility (%)

60.53%

Previous Close

1.68

Open

1.67

Bid

1.68 x 1,500

Ask

1.69 x 1,000

Day's Range

1.67 - 1.68

Trading Volume

75,500

Financial Highlight

Latest Quarter | Ann. Date

30-Jun-2022 [#4] | 29-Aug-2022

Next QR | Est. Ann. Date

30-Sep-2022 | 26-Nov-2022

T4Q P/E | EY

5.24 | 19.08%

T4Q DY | Payout %

7.63% | 39.99%

T4Q NAPS | P/NAPS

2.22 | 0.76

T4Q NP Margin | ROE

14.59% | 14.44%

Market Buzz
Company Profile

Sector: INDUSTRIAL PRODUCTS & SERVICES

Sector: INDUSTRIAL PRODUCTS & SERVICES

Subsector: INDUSTRIAL MATERIALS, COMPONENTS & EQUIPMENT

Subsector: INDUSTRIAL MATERIALS, COMPONENTS & EQUIPMENT

Description:

Chin Well Holdings Bhd is a Malaysia-based investment holding company. It operates in three business segments. The Fastening products segment is engaged in the manufacturing and trading of screws, nuts, bolts and other related products. Its Wire products segment is involved in the production of precision galvanized wire, annealing wire, bright wire, hard drawn wire, polyvinyl chloride wire, bent round bar and grill mesh. The company's Investment holding segment comprises of investment holding and other associated activities. It operates geographically across countries like Malaysia, Vietnam, and other Asian and European countries.

Discussions
3 people like this. Showing 50 of 2,530 comments

ironstockhunter

close one eye, open one eye, no eye see

2022-07-07 15:23

Pinky

What no well again ha?

2022-07-08 09:32

Pinky

if u so dislike this stock just sell la

what a nuisance

2 months ago

Pinky

BUY

2 months ago

Pinky

BUY

2 months ago

enlistcapital

One Up on Malaysia’s Steel Industry

While there are many well-intentioned contents published on stock forums, some of them are simply based on writers' opinion and understanding may end up become inaccurate or mispresented, so to speak.

That being said, I do not wish to point fingers or lay blames to any parties, and I hope whatever I shared in this article could brighten up our reader’s mind.

To begin with, there are generally two types of steel industries player in Malaysia, namely the manufacturers and/or value add companies, and those who involved mainly in the trading and wholesaling business.

As for the value chain, the photo taken from Bulatlat had presented well on how it works.

https://www.bulatlat.com/2016/09/21/buildfilipino-developing-local-ste...

2 months ago

enlistcapital

Generally, Malaysia did not involve much in the iron ore mining industry, as our country’s mineral mining sector recorded a gross output value of MYR3.5 billion, out of which RM1.7 billion is attributable to bauxite and ilmenite mining (2016, Mining and Quarrying Economic Census).

And according to Trading Economics, https://tradingeconomics.com/malaysia/mining-production the mining production in Malaysia had averaged a 0.75% drop from 2011 until 2021. Hence, we do not see much iron mining activities ongoing on Bursa.

2 months ago

enlistcapital

While investors would generally refer “steel” prices on CNY-based rebar, which is the first search result one could find when you googled “steel prices”, flat steel and value-added products such as hot rolled coil and cold rolled coil data is relatively harder to be found. Hence, there are many misunderstood on the pricing – which is completely understandable especially for those who are new to the market.
You could also see that the application of long steel such as rebar and flat steel are much different.

Understandably, the prices for “steel” are constantly fluctuating alongside with supply and demand.

While many could argue that “steel” prices had went down from its high, the value of construction work done alone in 2022 Q1 in Malaysia had amounted to RM29.5 billion – steel, being one of the key construction materials, is poised to see an increase of demand, and at the current juncture, it is still considerably profitable for steel players in Malaysia.

For manufacturers in Malaysia, they are generally applying to a costs-plus model in terms of factoring their prices. In other words, as long as the management had been keeping a close eye on steel prices and manage their inventories well, the company should remain buoyant against the price fluctuation headwinds, while preparing rigorously for the next upcycle.

For number crunchers, we need to relook at the term “Revenue” , which obviously was made up of 2 aspects for steel companies, namely the volume supplied and selling price of the products.

In weaker steel prices time, the manufacturer or trader could rack up their volume to cover up fixed costs as well as enhance their margins, and during the steel upcycle, they could enjoy both at once. It all comes down to how well the company was managed, especially on the inventory level.

2 months ago

enlistcapital

Speaking of which – inventories could make a difference on the profit and loss statement, but for obvious reasons it would depend on when the goods were sold. Do bear in mind, that these inventories are not like your properties, which one could revalue to inflate its bottom line, but instead, it needs to be sold then only its bottom line can be concluded which is always tied back to the timing of sales.

Of course, for slow moving inventories and those inventories which are below its net realisable value, the steel manufacturers and/or traders may even need to impair or setting up an allowance for impairment on the books!

Therefore, I was amazed when investors are touting the idea of steel companies inflating their numbers by not doing anything on their inventories.

However, for investors, it is always about the return on investment. We all know that the stock market generally had a 6-12 months forward nature in pricing and valuation, and that would very well explain the current valuation of the steel companies. Coupled with hampered investors sentiment, there you go, low single digit PE steel companies.

It is wise for investors to normalize the company profit, and to certain extent – try to wait out for a low for companies who managed their cash flow well.

2 months ago

enlistcapital

Oh! Speaking of which, cash flow and debt is another commonly debated issue in the steel industry.

I think many investors may understand the basics of working capital, but not the concept of trade financing. You see, in a capital-intensive business, it is sometimes cheaper to raise a super short-term borrowing of 30 to 120 days in order to secure customers and better margins.

This is common that steel industry, or commodities related companies on Bursa had over a great deal of their debt in short-term trade financing, which is lower in financing costs, as it was prorated.

It is just sad to see that investors are injudiciously and blatantly claiming that steel makers would raise borrowings just to pay dividends to attract investors. Dividends are generally approved by the board members while for final dividends, shareholders’ approval need to be sought. The board members which also consists of independent directors must have closely monitor the cash flow of the company before approving it.

So much for saying debt-for-dividend.

I think investors need to be fair in justifying the profit and loss, as well as cash flow movement of any steel companies in Malaysia before crowning an undervalued or overvalued statement over them. It is simply irresponsible.

Remember, what is undervalued now can be overvalued in 6-12 months’ time, and vice-versa.

Cheers!

2 months ago

Pinky

buy

1 month ago

Pinky

I lose

1 month ago

Pinky

Buy. More upside

1 month ago

dragon328

Chinwell is very undervalued at PER of less than 6.0x and dividend yield over 6.6%.

9 month net profit already amount to RM68 million with 3QFY2022 at record net profit of RM30 million. Full year net profit will easily reach RM90 million or EPS of 32 sen.

9 month free cashflows totalled RM80 million, annualised to RM106 million or 37.0 sen per share. Already in net cash position as of 31 Mar 2022, Chinwell will be able to declare high dividends.

Assuming 60% dividend payout rate, Chinwell can easily declare annual dividends of 19 sen per share, or just using 52% of its annual free cashflows. Net cash position will build up even further by almost RM50 million every year.

1 month ago

garychee8

drop more buy more...

1 month ago

Pinky

Bargain. Buy

1 month ago

dragon328

one of the most undervalued growth stocks

1 month ago

dragon328

I wouldn't mind to collect steady 15 sen dividends every year even though its share price remained at RM1.80-2.00 for next few years

1 month ago

Pinky

@dragon328 +100

Dividends are part of investment returns

1 month ago

Pinky

just buy. will rise again with good dividends

1 month ago

Pinky

dividend is coming hehehe

1 month ago

Pinky

Buy the value. Now is the chance to accumulate

1 month ago

Pinky

sell the strong buy the value

1 month ago

ipohwhitecoffee

Undervalued stock just buy and keep no harm

1 month ago

dragon328

looks like record quarterly profit coming soon

1 month ago

Pinky

...with bumper dividend too?

1 month ago

treasure_seeker

historically, the dividend should be around 40% of profit from 2 quarters.. so, go and figure out the expected dividend..

1 month ago

Pinky

red alert, dumping down in preparation of post-results rally

1 month ago

CFTrader

EnlistCapital, well said on the Steel industry...
But Chinwell is involving in a screw/nut/bolt business involving worldwide .

Wire division comprises of manufacturing of precision galvanized wire, annealing wire, bright wire, hard drawn wire, PVC wire and grill mesh.

It's like Apple farm vs Apple Juice manufacture comparison.

1 month ago

Pinky

time to accumulate on knee jerk reaction

1 month ago

treasure_seeker

Another great QR.. and very nice dividend..

1 month ago

Pinky

Good divvy! Tomorrow up up and away

1 month ago

goody99

probably have to sell on news

1 month ago

treasure_seeker

most welcome to those who wants to sell.. please make it cheaper

1 month ago

dragon328

Superb results. 8 sen dividend. Full year dividend yield at 7.8%. Long term growth stock with high dividends.

1 month ago

Pinky

buy buy buy lo

1 month ago

Pinky

"The Board of Chin Well is pleased to declare a single tier second interim dividend of 8 sen per ordinary share for the financial year ended 30 June 2022, which is higher than the rate of the single tier interim dividend of 1.8 sen per ordinary share declared in the previous financial year.



The variation is mainly due to higher profit after tax of the Group recorded as compared to the corresponding reporting period in FY2021."

Good and honest Management, sharing profits with shareholders!

1 month ago

kingoftradings

useless counter

1 month ago

The St. Goreng

buy on rumor sell on news. best price to sell on gap up

1 month ago

Pinky

Buy. Ah Chin is value

1 month ago

Pinky

Thanks admin for removing the spammer fruitcake

Or did he deleted his own posts? Hmm...

1 month ago

Michael Kwok

Sell call rm 1.71
Downgrade to rm 1.30 range
14/9/2022 11.45am

3 weeks ago

Pinky

Switch to fruitcake. Hell's cross formed

2 weeks ago

gemfinder

Useless counter

2 weeks ago

Pinky

Sell. Sell and buy back later

2 weeks ago

Pinky

time to love fruitcake <3

2 weeks ago

nelsonlim

fruitlet, can scomnet retrace for a buy sighhhhhh

1 week ago

Pinky

gogogo Ah Chin

1 week ago

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