[%SZWO%]
Research by Apex
Buy – TP RM2.04

“Positioning for better days ahead"

• 6MFY24 core net profit at RM25.5m deemed within expectations, accounting to 45.7% of our core net profit forecast as we reckon WELLCAL to deliver a seasonally better 2H figures.
• Deferred orders from the Red Sea crisis expected to normalise in coming quarters, while net margins may remain below the 25% threshold for FY24 amid the higher raw material prices.
• Re-iterate our BUY recommendation on WELLCAL with a target price of RM2.04, by pegging 18.0x P/E multiple to FY24F EPS of 11.3 sen.

Analyst:
Kenneth Leong
[%UIeG%]

$KLSE-WELLCAL
Research by Apex
Buy – TP RM2.04

“Positioning for better days ahead"

• 6MFY24 core net profit at RM25.5m deemed within expectations, accounting to 45.7% of our core net profit forecast as we reckon WELLCAL to deliver a seasonally better 2H figures.
• Deferred orders from the Red Sea crisis expected to normalise in coming quarters, while net margins may remain below the 25% threshold for FY24 amid the higher raw material prices.
• Re-iterate our BUY recommendation on WELLCAL with a target price of RM2.04, by pegging 18.0x P/E multiple to FY24F EPS of 11.3 sen.

Analyst:
Kenneth Leong
kennethleong@apexsecurities.com.my

$WELLCAL / 7231 (WELLCALL HOLDINGS BERHAD)