♦ 3Q10 net profit grew 12.1% yoy. Wellcall’s 3QFY09/10 net profit of RM3.5m (+12.1% yoy; +10.5% qoq) came in below our and consensus expectations with 9MFY10 net profit of RM11.1m (+27.2% yoy) accounting for 71% and 66% of our and consensus full-year estimates respectively. The key variance was a higher-than-expected 9M effective tax rate of 9.8% vs. our full-year effective tax rate assumption of 7.5%.
Wellcall Holdings Berhad : Below Expectations Due To High Effective Tax Rate - 16/08/2010
Showing posts with label Wellcall Holdings. Show all posts
Showing posts with label Wellcall Holdings. Show all posts
Monday, August 16, 2010
Monday, May 17, 2010
Wellcall Holdings Berhad : No Surprises - 17/5/2010
2Q10 net profit grew 57.4% yoy. Wellcall’s 2QFY09/10 net profit of RM3.2m (+57.4% yoy; -27.6% qoq) came in within our and consensus expectations with 1H net profit of RM7.6m (+35.7% yoy) accounting for 48% and 46% of our and consensus full-year estimates respectively.
Wellcall Holdings Berhad : No Surprises - 17/5/2010
Wellcall Holdings Berhad : No Surprises - 17/5/2010
RHB Equity 360° - 17 May 2010 (Kossan, CIMB, AMMB, IOI, ILB, Wellcall; Technical: Sime, Pos)
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♦ Kossan is due to announce its 1QFY10 results later this week. We expect Kossan to post low double-digit yoy revenue and net profit growth due to a combination of: 1) higher volume sales for the glove segment; 2) improved demand for its TRP products as a result from the economic recovery; and 3) margin expansion due to the improvement in sales mix as more higher value gloves were sold during the quarter.
♦ Qoq, we expect high single digit revenue growth to be achieved mainly on the back of:
1) upward adjustments to selling prices to pass on higher raw material cost, offset by the weakening of US$ against RM; and
2) stronger demand for TRP segment due to economic recovery. 1Q10 core earnings, however, could possibly remain flat qoq due to lower margins resulting from the usual time lag in passing on higher raw material prices and weakening US$, partly offset by stronger performance from TRP segment.
♦ Capacity expansion at its new factory in Jalan Meru is ongoing, and upon completion, this new factory will house a total of 32 double former lines. This factory currently houses 8 double-former lines, which started commercial production in Oct’09 while another 8 double-former lines are expected to start commercial production in 3Q2010. The remaining 16 double-former lines are expected to start commercial production
by 2Q2011. In total, Kossan’s annual production capacity would increase from 12bn pieces currently to 14.5bn pieces by end-2010 and 18 bn pieces by end-2011.
♦ Maintain forecasts, fair value of RM10.74 (based on target CY10 PER of 13x) and Outperform call.
RHB Equity 360° - 17 May 2010 (Kossan, CIMB, AMMB, IOI, ILB, Wellcall; Technical: Sime, Pos)
♦ Kossan is due to announce its 1QFY10 results later this week. We expect Kossan to post low double-digit yoy revenue and net profit growth due to a combination of: 1) higher volume sales for the glove segment; 2) improved demand for its TRP products as a result from the economic recovery; and 3) margin expansion due to the improvement in sales mix as more higher value gloves were sold during the quarter.
♦ Qoq, we expect high single digit revenue growth to be achieved mainly on the back of:
1) upward adjustments to selling prices to pass on higher raw material cost, offset by the weakening of US$ against RM; and
2) stronger demand for TRP segment due to economic recovery. 1Q10 core earnings, however, could possibly remain flat qoq due to lower margins resulting from the usual time lag in passing on higher raw material prices and weakening US$, partly offset by stronger performance from TRP segment.
♦ Capacity expansion at its new factory in Jalan Meru is ongoing, and upon completion, this new factory will house a total of 32 double former lines. This factory currently houses 8 double-former lines, which started commercial production in Oct’09 while another 8 double-former lines are expected to start commercial production in 3Q2010. The remaining 16 double-former lines are expected to start commercial production
by 2Q2011. In total, Kossan’s annual production capacity would increase from 12bn pieces currently to 14.5bn pieces by end-2010 and 18 bn pieces by end-2011.
♦ Maintain forecasts, fair value of RM10.74 (based on target CY10 PER of 13x) and Outperform call.
RHB Equity 360° - 17 May 2010 (Kossan, CIMB, AMMB, IOI, ILB, Wellcall; Technical: Sime, Pos)
Tuesday, March 2, 2010
Wellcall Holdings Berhad : Within Expectations - 01/03/2010
Within expectations. Wellcall’s 1QFY09/10 net profit of RM4.4m (+23.3% yoy) accounted for 28% and 27% of our and consensus full-year estimates respectively. We consider this to be within our expectations as we believe margins would be affected in the coming quarters ahead due to rising raw material prices.
Wellcall Holdings Berhad : Within Expectations - 01/03/2010
Wellcall Holdings Berhad : Within Expectations - 01/03/2010