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