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WELLCAL (7231) : WELLCALL HOLDINGS BERHAD
ILoveDividend
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Posts: 521
Joined: Dec 2011		 29 May 2012, 09:12 AMPost #101
Another 4 cents dividend coming wub with a good report posted. thumbup
gab102001
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Posts: 48
Joined: Jan 2012		 29 May 2012, 10:26 AMPost #102
Another 4 cents dividend coming ...ILoveDividend @ 29 May 2012, 09:12 AM

GReat performance!! Lucky I didnt sell it!! WELLCALL gogogo!!!!!thumbupyeah
Destiny
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Posts: 92
Joined: Dec 2011		 29 May 2012, 08:48 PMPost #103
too bad me sell adycrymad
benny_s
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Posts: 9
Joined: Dec 2011		 30 May 2012, 12:01 AMPost #104
Good stock,cheer for wellcal holderrolleyesthumbup
ILoveDividend
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Posts: 521
Joined: Dec 2011		 31 May 2012, 02:46 PMPost #105
Highlight for Q2 report of FY2012:

Forum | MalaysiaStock.Biz

The Group reported a profit before taxation ("PBT") of RM7.137 million for the current quarter ended 31 March 2012 compared to PBT of RM3.969 million recorded in the corresponding quarter ended 31 March 2011, representing an increase of RM3.168 million or 79.82%. The increase in PBT is not in line with the increase in turnover and are mainly attributable to the following:

(i) Lower overhead as a result of higher utilisation of production capacity;
(ii) Higher proportion of sales mix in the form of mandrel rubber hose, which yield higher margin than extruded rubber hose;
(iii) Lower raw material cost; and
(iv) The gradual increase of product pricing on certain customers gave rise to higher gross profit margin.

Prospects
The outlook for the global economy remains challenging and uncertain. We expect economic growth in 2012 to slow and as such, anticipate that global demand will decline. Nevertheless, the Group’s strategies remain focused on leveraging on its extensive customer network, competitive products, quality services and a wider range of products to enhance its competitive edge.
Barring unforeseen circumstances, the Board believe that the Group's prospects for the financial year ending 30 September 2012 remains favourable.
Cash still standing at 39mil.

Total dividend being distributed since 2006: wubwubwub
Forum | MalaysiaStock.Biz
Yummydividend
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Posts: 31
Joined: Jan 2012		 03 Jun 2012, 01:41 PMPost #106
sweatKeep it for the next generation
ILoveDividend
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Posts: 521
Joined: Dec 2011		 18 Jun 2012, 09:05 AMPost #107
Bullish Wellcall in expansion mode

KUALA LUMPUR (June 15): WELLCALL HOLDINGS BHD [], the country's largest exporter and producer of industrial rubber hoses, expects to increase its production capacity by 40% and profit margins to improve when its new factory is built, according to executive director Alex Chew.

He said the factory will be built on a 3.3ha site 1km away from its existing factories in Kinta, Perak. On Wednesday, Wellcall entered into a sale and purchase agreement to acquire the land for about RM4.6 million.

"Our production utilisation rate is currently around 80%. The new factory will allow Wellcall to meet the rising demand for its products," Chew told The Edge Financial Daily.

He said Wellcall should continue to see strong demand from multinational companies, particularly in Europe and North America, which outsource the production of their products to the company.

"Wellcall is expecting the global outsourcing trend to continue as it has established a track record of being a reputable original equipment manufacturer," he said.

According to Chew, CONSTRUCTION [] of the new factory is expected to start at the end of the year and completed by 3Q13. Commercial production is expected to start end-2013, he added.

The factory will house production lines for its mandrel hoses, which command higher margins than the extrusion hoses, said Chew.

Wellcall plans to allocate about RM25 million in capital expenditure to cover the cost of the land, factory building and machinery, he said.

"We are looking at taking a term loan to fund the factory and land amounting to about RM13 million," said Chew.

The term loan will mark Wellcall's first borrowing since its listing in 2006. As at end-March, Wellcall had cash reserves of RM39.4 million.

When asked how the loan would affect Wellcall's dividends, Chew said: "Wellcall hopes to continue paying dividends at its existing payout ratio and will definitely continue to maintain its minimum payout of at least 50% of net profit."

Wellcall paid dividends of 12 sen, representing 103% of its net profit, for FY11.

On the company's outlook, Chew said lower rubber prices and the strengthening US dollar against the ringgit will bode well for Wellcall.

Rubber, which accounts for about 70% of Wellcall's costs, has been trending downwards since peaking in 2011. The price of standard Malaysian rubber (SMR) 10 has come down from a peak of RM16.75 per kg in February 2011 to average around RM9.09 per kg this month.

The appreciation of the US dollar is favourable for Wellcall, as close to 98% of its sales are transacted in the greenback.

From a low of RM2.90 in 2011, the US dollar has risen to about RM3.18 now.

For its 2QFY12 ended March, Wellcall's net profit jumped by 91% to RM5.52 million from RM2.89 million a year ago, while revenue increased 15.5% to RM37.34 million from RM32.34 million.

For FY11, Wellcall's net profit gained 4.9% to RM15.33 million from RM14.62 million in FY10, while revenue increased 41.7% to RM136.83 million from RM96.56 million.

Wellcall closed at RM1.85 on Thursday, rising 47% YTD.

CIMB Investment Bank on Thursday increased its target price for Wellcall to RM1.94 from RM1.83 previously.

This story appeared in The Edge Financial Daily on June 15, 2012.
ILoveDividend
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Posts: 521
Joined: Dec 2011		 19 Jun 2012, 04:57 PMPost #108
Congra to all the WELLCAL shareholder, it is approaching RM2.00 soon. thumbup
Hope more and more dividend coming after the new factory is built. Cheer....wub
ryuk
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Joined: Apr 2012		 22 Jun 2012, 09:45 AMPost #109
i wish i know earlier this counter cry
ILoveDividend
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Joined: Dec 2011		 12 Jul 2012, 05:12 PMPost #110
Lets study if wellcal overprice at RM2.20.

I guess the strong rally for pass 1-2 months is due to the expansion plan. As stated in the previous announcement, its director expects to increase its production capacity by 40% and profit margins to improve after the new expansion.

1) Capacity increase by 40% means its revenue will be increased by 40%.
2) Profit margin to improve, this mean the profit will be increased by more than 40%.

To be safe, lets assume the profit will be increased by just 40%. Wellcal is getting 4cents for its pass 2 quarter and i assume this will be at least the same for the coming few quarter due to lower rubber price and strength of USD.
Below are the conclusion:

Before expansion: 4.00 x 4 Quarter = 16 cents, Fair value = RM1.600
After expansion: 5.60 (increase 40%) x 4 Quarter = 22.4 cents, Fair value = RM2.24

So, it is trading at its fair value based on PE 10. But it is not suprice that WELLCAL can be traded above PE 10 in the future. rolleyes
Yummydividend
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Posts: 31
Joined: Jan 2012		 12 Jul 2012, 05:26 PMPost #111
Lets study if wellcal overprice at RM2.20.

I guess the strong rally for pass 1-2 months is du...ILoveDividend @ 12 Jul 2012, 05:12 PM
From the dividend yield perspective, assuming they distribute 0.16 (annualised), the dividend yield is 7% (0.16/2.20) which is consider less lucrative as before with 8% (0.1/1.20).

The share price should be influenced by the news temporary. After the GE13 announcement, the big companies drop in red, Wellcall will follow too. Majority Malaysian is not dividend investor. Eg. last year 2011, February drop, wellcall from 1.3 dropped to 1.14.

Personally, I believe it wont go to 1.20, but at least will go to 1.50. Before the GE13 announcement, lets put the money aside, put some itch prevention cream on your hands.

* my personal opinion, any experienced sifu please comment.
lkc121
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Posts: 7
Joined: Jun 2012		 13 Jul 2012, 12:35 AMPost #112
Lets study if wellcal overprice at RM2.20.

I guess the strong rally for pass 1-2 months is du...ILoveDividend @ 12 Jul 2012, 05:12 PM


1) Capacity increase by 40% means its revenue will be increased by 40%.
2) Profit margin to improve, this mean the profit will be increased by more than 40%.

its not exactly correct because there are actually WACC. you got to factor that in. Anyway, you are correct theoratically in your calculation assumption!
wow123
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Posts: 98
Joined: Jun 2012		 13 Jul 2012, 08:29 AMPost #113
Ahya right now the market you can't base on technical calculation or paper indication , Why
I says that in our country is not same , assuming some one call GE13 base on pass record you can minitor their move. Even right now in HK stock exchange also not perform well.
ILoveDividend
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Joined: Dec 2011		 13 Jul 2012, 12:20 PMPost #114



1) Capacity increase by 40% means its revenue will be increased by 40%.
2) Profit mar...lkc121 @ 13 Jul 2012, 12:35 AM

What is WACC? Thanks in advance. notworthy
ILoveDividend
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Posts: 521
Joined: Dec 2011		 13 Jul 2012, 12:21 PMPost #115
Ahya right now the market you can't base on technical calculation or paper indication , Why
I say...wow123 @ 13 Jul 2012, 08:29 AM

No doubt that political issue is the most sensitive issue in the financial market. I may consider to sell some of my holding as well. thumbup
lkc121
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Posts: 7
Joined: Jun 2012		 13 Jul 2012, 12:23 PMPost #116


What is WACC? Thanks in advance. ...ILoveDividend @ 13 Jul 2012, 12:20 PM

its Weighted Average Cost of Capital. Its technical no doubt with long formula. But its an essential tool to track the ROI.

you can understand more here : http://www.investopedia.com/terms/w/wacc.asp#axzz20QXOuvws
lkc121
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Posts: 7
Joined: Jun 2012		 13 Jul 2012, 12:27 PMPost #117


What is WACC? Thanks in advance. ...ILoveDividend @ 13 Jul 2012, 12:20 PM

its Weighted Average Cost of Capital. Its technical no doubt with long formula. But its an essential tool to track the ROI.

you can understand more here : http://www.investopedia.com/terms/w/wacc.asp#axzz20QXOuvws
ch509a
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Posts: 18
Joined: Jul 2012		 21 Jul 2012, 08:07 PMPost #118
such a good counter but im new what price can enter?
gab102001
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Posts: 48
Joined: Jan 2012		 21 Jul 2012, 10:35 PMPost #119
such a good counter but im new what price can enter?ch509a @ 21 Jul 2012, 08:07 PM
If you get a prediction by next coming 2nd half year EPS and dividend are same as first halt year, the total EPS this year is 0.0432 + 0.0417 + 0.04 + 0.04 = 0.1649
The price is 2.14.
Then PE = 2.14 / 0.1649 = 12.98
Dividend is 0.04 + 0.04 + 0.04 + 0.04 = 0.16
Dividend yield = 0.16 / 2.14 = 7.47%

For me those good shares, PE under 15 still acceptable for me if the dividend yield is 7.47%, still 2X higher than current fix deposit rate. thumbup
gab102001
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Posts: 48
Joined: Jan 2012		 21 Jul 2012, 10:39 PMPost #120
I am really can't wait for the June - 2nd quarter result come out on next month during Hari Raya time.

Hope this company can give us big surprise again. notworthy
Now seems like the up trend is over due to the international rubber price raising.

yeah doh drool lol mad notworthy question rant rolleyes sad shutup shy smile star sweat thumbup wub cry

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