[%DcEI%]
Research by APEX
BUY – TP RM 1.90

"Earnings growth impacted by weaker demand”

• WELLCAL’s 3QFY24 core net profit slipped -23.4% yoy, but rose +15.3% qoq to RM13.6m, bringing 9MFY24 core net profit at RM39.1m (+1.2% yoy) came slightly below expectations, amounting to 69.5% of in-house and 70.2% of consensus expectations.
• Trimmed our earnings forecast by -5.0%/-4.8%/-4.5% to RM53.6m/RM55.6m/RM59.8m for FY24F/FY25F/FY26F respectively, adjusted to the softer demand as well as higher raw material prices.
• Re-iterate our BUY recommendation on WELLCAL with a lower target price of RM1.90, by pegging 17.0x P/E multiple to rolled-over FY25F EPS of 11.2 sen.

Analyst:
Kenneth Leong
[%bYso%]

$KLSE-WELLCAL
Research by APEX
BUY – TP RM 1.90

"Earnings growth impacted by weaker demand”

• WELLCAL’s 3QFY24 core net profit slipped -23.4% yoy, but rose +15.3% qoq to RM13.6m, bringing 9MFY24 core net profit at RM39.1m (+1.2% yoy) came slightly below expectations, amounting to 69.5% of in-house and 70.2% of consensus expectations.
• Trimmed our earnings forecast by -5.0%/-4.8%/-4.5% to RM53.6m/RM55.6m/RM59.8m for FY24F/FY25F/FY26F respectively, adjusted to the softer demand as well as higher raw material prices.
• Re-iterate our BUY recommendation on WELLCAL with a lower target price of RM1.90, by pegging 17.0x P/E multiple to rolled-over FY25F EPS of 11.2 sen.

Analyst:
Kenneth Leong
kennethleong@apexsecurities.com.my

$WELLCAL / 7231 (WELLCALL HOLDINGS BERHAD)