wellcall holdings bhd (company no: 707346-w) (stock code: 7231) by : kc lim 17 th december 2013 rule...
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Wellcall Holdings Bhd(Company No: 707346-W)(Stock Code: 7231)
By : KC Lim17th December 2013
Rule #1: Don’t Lose Money and Rule # 2: Don’t forget Rule #1
Investment Principles
Margin of
Safety
Right Managem
ent
Right Business
ModelRight
Valuation Vs Price
Knowing you will make money comes from buying a wonderful business at an attractive price
Business Model
Owns 100% of WELLCALL HOSE (M) SDN BHD(Company No: 343730-A)
PRINCIPAL ACTIVITIESManufacturing of rubber hose and related products
Economic moat Cost Advantage
◦ Low operating cost and high margins◦ In house designed and built production equipment.◦ Lower operational costs (eg. Labour and location)
Customers◦ Has a strong customer base with more than 10
years business relationship◦ Customers from a total of more than 60 countries◦ Expanded from 3 to 6 application markets (air and
water, welding and gas, oil and fuel, automobile, ship building and food and beverage.)
Right Management
Owner-Oriented or Driven…… to change the world in some small or cool way!!
DATUK NG PENG HONG @ NG PENG HAY, D.M.S.M., D.S.M., P.J.K.Age : 60Nationality : MalaysianQualification : Malaysian Certificate of EducationOccupation : Company DirectorPosition : Independent Non-Executive ChairmanOther Directorships of Public Companies :
Bonia Corporation BerhadFarm’s Best BerhadTa Win Holdings BerhadKomarkcorp BerhadICapital.Biz Berhad
The Date He Was First Appointed to the Board : 17 April 2006
Right Management
Owner-Oriented or Driven…… to change the world in some small or cool way!!
HUANG SHA, PMPAge : 57Nationality : Taiwanese (Malaysian Permanent Resident)Qualification : Secondary Education, TaiwanOccupation : Company DirectorPosition : Non-Independent Managing DirectorOther Directorships of Public Companies : NilThe Date He Was First Appointed to the Board : 17 April 2006
Management - Remuneration
Right Valuation Income Statement Magic Numbers Shareholdings Information
Earnings Per Share =0.176
Largest Shareholder
Return On Equity (%) =28.77
Largest Shareholder %
Gross Profit Margins (%) =25.29
CEO
Net Profit Margins (%) =15.11
Other Notable Shareholders
Balance Sheet Magic Numbers
Current Ratio = 6.19 Cash Per Share Less Debt ($) = 0.31
Cash Ratio = 3.97 Price Earnings Ratio (PE) = 19.6
Stock Turnover (Days) = 52.28 Price Equity Ratio = 5.6
Stock Turnover Ratio = 6.98 Price Earnings Growth Ratio = 1.3
Debtors (Days) = 16.10 Share Price Less Cash = 3.14
Creditors (Days) = 27.88
Borrowings / NPAT = 0.00 Margin of Safety = 1.51%
Borrowings / Operating Cash Flow = 0.00
Gearing =0.00
Intrinsic Value (IV)$3.1
8Valuation Magic Numbers
Free Cash Flow ($mil) = 639.40 Discounted Earnings Model
Market Capitalisation ($mil) = 457.47 Growth Rate 15% Risk Free Rate 4%
Dividend Yield (%) = 4.49% Yr 1 2 3 4 5 6 7 8 9 10
*Source Legend Earnings0.202 0.232 0.267 0.307 0.353 0.406 0.467 0.538 0.618 0.711
IS Income Statement (Profit & Loss, Statement of Consolidated Income) Discount Rate0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676
BS Balance Sheet Discounted Earnings0.194 0.215 0.238 0.263 0.290 0.321 0.355 0.393 0.434 0.480
CF Cash Flow Statement Cumulative Earnings0.194 0.409 0.647 0.909 1.200 1.521 1.876 2.269 2.703 3.184
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