WELLCALL HOLDINGS BHD
KLSE (MYR): WELLCAL (7231)
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Last Price
1.19
Today's Change
+0.01 (0.85%)
Day's Change
1.18 - 1.20
Trading Volume
369,800
Overview
Market Cap
593 Million
NOSH
498 Million
Avg Volume (4 weeks)
298,147
4 Weeks Range
1.12 - 1.20
4 Weeks Price Volatility (%)
87.50%
52 Weeks Range
1.02 - 1.29
52 Weeks Price Volatility (%)
62.96%
Previous Close
1.19
Open
1.18
Bid
1.19 x 114,600
Ask
1.20 x 143,000
Day's Range
1.18 - 1.20
Trading Volume
369,800
Financial Highlight
Latest Quarter | Ann. Date
31-Mar-2023 [#2] | 30-May-2023
Next QR | Est. Ann. Date
30-Jun-2023 | 22-Aug-2023
T4Q P/E | EY
15.11 | 6.62%
T4Q DY | Payout %
6.22% | 93.97%
T4Q NAPS | P/NAPS
0.25 | 4.72
T4Q NP Margin | ROE
19.93% | 31.25%
Market Buzz
2023-06-07
2023-06-06
News and Blogs
Company Profile
Sector: INDUSTRIAL PRODUCTS & SERVICES
Sector: INDUSTRIAL PRODUCTS & SERVICES
Subsector: INDUSTRIAL MATERIALS, COMPONENTS & EQUIPMENT
Subsector: INDUSTRIAL MATERIALS, COMPONENTS & EQUIPMENT
Description:
Wellcall Holdings Bhd is an investment holding company through its subsidiary principally manufactures industrial rubber hose for customers in the business of distributing rubber hose to equipment manufacturers. The group's business segment comprises the manufacture and sale of rubber hose and related products. Mandrel type and Extrusion type are the products of the company. The group's product ranges to various application markets like air and water, oil and gas, welding, automotive, shipbuilding, abrasion, food and beverages and chemical applications. The manufacturing and investment holding segments are operated in Malaysia and distributes its products globally. The company generates the majority of its revenue from export sales.
Discussions
12 people like this. Showing 50 of 1,690 comments
Another two plunges will reach at RM 0.88, my favourite number.
Come on, i shall standy to catch this falling knife
2022-10-12 10:06
Hi anyone know abt the reason behind the changes in boardroom. Kindly explain thanks
2022-10-19 19:32
no worry, just posts reshuffling.
buy in NOW, rare opportunity at this price.
Just now I topped up @ RM 1.12
Hurry catch the knives before it moves up..upp
2022-10-28 11:24
Quote:-
"New product offering to spur long-term growth
Wellcall joint venture (JV) agreement with a Swedish company, Trelleborg Holding AB (Trelleborg) to manufacture, market, and sell composite hose and fittings is another driver for the group’s long-term growth.
A market research company Dataintelo stated that the Global Rubber Hose Market was valued at US$9.4bn in 2021. In addition, according to MarketsandMarkets, the industrial hose market is expected to grow at a 9.9% CAGR from the year 2020 to 2025 to be driven by a broad-based demand from the oil and gas, construction, manufacturing, agriculture, and automobile sectors. The industry is also expected to gain from the recovery of the oilsector, thanks to solid demand post-COVID-19 crisis. This is expected to be spurred as well by demand from industrial rubber hoses given its ability for higher suction and delivery for both the upstream and downstream products in the industry. This will be further aided by a growing global demand for automobiles given an expected rise in global automobile sales. Note that demand for industrial rubber hoses was intact during the COVID-19 pandemic thanks to pharmaceutical manufacturing facilities which required the application of chemical and gas hoses to produce medical supplies globally. Encouragingly, the Asia Pacific region is expected to contribute the largest share of the industrial hose market with a projected 10.8% CAGR by 2025. This, among others, will be driven by its high population density, growing per capita income, large-scale industrialization and urbanization, focus on the agriculture sector, and an upsurge in industrial development.
Excellent fundamental track records
Wellcall’s EBITDA margin ranged from 29% to 34% since FY17 to FY21 and this is set to continue in the foreseeable future. The group’s attractive dividend policy which is based on a 50% payout policy presents an attractive dividend value proposition for investors."
2022-10-28 11:58
Nepo, I trust you. I have also added. This is a well managed company with tremendous growth over many years to come.
2022-10-28 12:04
I was hoping to collect towards 1.02 but it looks like no chance for now, so just buy at 1.12
2022-10-28 12:06
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...
2022-10-28 12:19
https://www.avenir-learning.com/wellcall-holdings-bhd-wellcal-analysis/ Wellcall Holdings Bhd WELLCAL – Higher revenue to be offset by temporary cost pressures
2022-11-12 10:02
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.
2022-11-12 15:10
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.
2022-11-12 15:12
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).
2022-11-12 15:17
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
2022-11-12 15:19
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.
2022-11-30 20:36
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.
2022-11-30 20:37
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.
2022-11-30 22:57
@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
2022-12-01 15:14
One of my most steady stocks. Still holding at paper gain and consistently get dividends while sleeping well every night
2022-12-01 17:03
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.
2022-12-02 11:02
Anyone attending the coming AGM?
Is it unusual to pay non executive directors monthly fees of up to Rm1.5mil
2023-02-18 19:52
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.
2023-02-27 16:07
DEBT LOW ☑
CASH LIQUIDITY ☑
REVENUE GROWTH ☑
PROFIT GROWTH ☑
FREE CASH FLOW GROWTH ☑
UNDERVALUE ☑
TREND ☑
LOW RISK/REWARD SETUP ☑
2023-03-07 09:55
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥
Security LastPr PE DY% Divcts ROE ttm-marg
WELLCAL (Industrial Materials) 1.12 16.26 6.3 7 28.71 18.1
2 months ago
Huh ... they deliver good result when people least expecting it.
Still holding it with a loss, dividend as compensation of holding cost.
1 week ago
Steady pun bibi once again. Still holding with a low cost. Earn both share price and divided at the same time
1 week ago
Wellcall looks pretty much like BPplas in May '21 provided it can shoot pass 1)1.20 and 2)1.25
3 days ago
@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
2 days ago
@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.
1 day ago
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.
1 day ago
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
1 day ago
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,
1 day ago
@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?
1 day ago
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Steady pun bibi
2022-08-30 18:44