Chin Well Holdings Berhad

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)
Research Report by TA

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)
Research Report by PBIV

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)
Research by Public
Underperform – TP RM0.67

" Below Expectation”

Chin Well Holdings (Chin Well) reported another sequentially stronger 4QFY24 net profit of RM3.7m (+47.5% QoQ) due to better performance of Fasteners division, though weaker YoY (-16.2%) due to widened losses in Wire division. Cumulative 12MFY24 net profit of RM9.1m (-76.5% YoY) was still below both our and consensus expectations, accounting for 58% and 87% of full year estimates, respectively. The discrepancy was largely due to slower than expected demand recovery. We trim our FY25-26F earnings by average of 30% to factor in lower sales from the Fasteners division and weaker margins from Wire division. Consequently, our PE-based TP is revised to RM0.67 (previously RM1.04). We maintain Underperform call on Chin Well.

Analyst:
Denny Oh
research@publicinvestbank.com.my

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)
Research by RHB
Sell – TP RM 0.76

"Soft End To FY24; Still SELL”

Still SELL,with newMYR0.76 TP from MYR0.81, 27% downside.Chin Well’s FY24 (Jun) results disappointed with weaker-than-expected topline and margin compression due to the loss of economies of scale and higher input costs. We cut our forecasts accordingly to reflect the softer numbers and persistently weak demand outlook. Current valuation (+1SD above the mean) remains lofty, and we believe the share price has yet to fully reflect the challenges ahead.

Analyst:
Tai Yu Jie
tai.yu.jie@rhbgroup.com

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)
Research by TA
SELL – TP RM0.69

"Demand Remains Subdued”

Following the revised earnings forecasts, we reduce our target price from RM0.74 to RM0.69, based on an unchanged target PER of 9x CY25 earnings. Maintain Sell on the stock.

Analyst:
Raymond Ng Ing Yeow
raymondng@ta.com.my

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)
Research by PIB
Underperform – TP of MYR 0.95

“Outlook Aggravated by Freight Rate Surge”

A recent meeting with management reaffirms our cautious stance on Chin Well, as the Group’s near-term outlook may continue to be challenged by weak demand recovery and elevated operating cost. Surge in freight rates as a result of disruptions in major trade lanes will hamper an already-fragile demand recovery for the Group. Nonetheless, Chin Well is well-placed to weather economic uncertainties, underpinned by its debt free capital structure with a total cash level of RM116m and management’s prudent budget control. We keep our earnings forecast unchanged. We retain our Underperform call on Chin Well with an unchanged PE-based target price of RM0.95.

Analyst(s):
Denny Oh
research@publicinvestbank.com.my

Notice of SBB by a Company Pursuant to Section 127 (16) of CA 2016

Immediate Announcement on Shares Buy Back

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)
Research by PIB
Underperform – TP of MYR 0.95

“Dragged By Lower Sales”

Chin Well Holdings (Chin Well) reported another sequentially stronger 3QFY24 net profit of RM2.5m (+885.3% QoQ). However, cumulative 9MFY24 net profit of RM5.3m (-84.6% YoY) was still below both our and consensus expectations, accounting for only 33.4% and 30.6% of full year estimates, respectively. The discrepancy was largely due to slower than expected demand recovery while price competition from China continues to weigh on the average selling price (ASP). We cut our FY24F earnings by 32% to factor in lower sales from the Fasteners division.However, as we rollover our valuation to CY25F EPS based on 7x PER, our TP is revised to RM0.95. We maintain our Underperform call on Chin Well. No dividend was declared for the quarter.

Analyst(s):
Denny Oh
Oh.BoonYeow @publicinvestbank.https://cutt.ly/7eurFfaw

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)
Research by RHB
Sell – TP of MYR 0.81

“Outlook Remains Challenging; SELL”

Still SELL with lower MYR0.81 TP from MYR0.94, 36% downside. Chin Well’s 9MFY24 (June) results missed expectations mainly due to weakerthan-expected margins, dragged down by softer sales. The current valuation (+2SD above the mean) is lofty – especially considering its persistently weak earnings. Additionally, the soft demand outlook poses downside risks to our forecasts, rendering the current risk-reward profile unattractive.

Analyst(s):
Tai Yu Jie
tai.yu.jie@rhbgroup.com

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)
Research by TA
Sell – TP of MYR 0.74

“Sluggish Demand Outlook ”

Excluding the one-off expenses of RM0.9mn, CHINWEL’s 9MFY24 core net profit of RM6.3m disappointed, accounting for only 41.7% and 36.4% of ours and the street’s full-year estimates, respectively. The disappointment was largely due to weaker-than-expected export volumes and persistently subdued demand for steel products.

Analyst(s):
Raymond Ng Ing Yeow
raymondng@ta.com.my

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

GEORGE TOWN: Chin Well Holdings Bhd expects flat growth for the financial year ending June 30, 2024 (FY24) due mainly to weakening demand amidst soaring inflation in Europe.

Change of Registrar - SYMPHONY CORPORATE SERVICES SDN BHD

Chin Well Holdings Bhd’s sales volume is expected to remain subdued in the near future, primarily due to softer demand for fastener and wire products, according to TA Research.

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)
Research by TA
Sell – TP of RM1.11

“Whispers of Challenge”

We came away from our recent meeting with CHINWEL management feeling less upbeat about the outlook of the company. Key takeaways include: 1) sales volume for fastener remains subdued in the near term, 2) bleak earnings outlook for wire division as it awaits contract from ECRL, and 3) higher compliance cost to fulfil carbon tariffs and ESG requirements. We maintain our Sell call on CHINWEL with an unchanged target price of RM1.11 premised on PER 9x CY25 EPS.

Analyst(s):
Raymond Ng Ing Yeow
raymondng@ta.com.my

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - BENUA HANDAL SDN. BHD.

Changes in Director's Interest (Section 219 of CA 2016) - MISS TSAI CHIA LING

Changes in Director's Interest (Section 219 of CA 2016) - MR TSAI CHENG HSUN

Changes in Director's Interest (Section 219 of CA 2016) - MR TSAI YUNG CHUAN

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR TSAI YUNG CHUAN

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR TSAI CHENG HSUN

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MISS TSAI CHIA WEN

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MISS TSAI CHIA LING

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)
Research by RHB
Sell (Maintained) – TP of MYR0.94

“Soft Demand To Persist; SELL”

Maintain SELL with lower MYR0.94 TP from MYR1.03, 23% downside. Chin Well’s 1HFY24 (Jun) results were below expectations due to prolonged demand weakness and loss of economies of scale. We foresee further downside risks to sales recovery considering the cautious outlook amidst macroeconomic headwinds in its key market. Current valuation (+2SD) appears lofty, and we believe the share price has yet to fully reflect the weaknesses and challenges ahead.

Analyst(s):
Tai Yu Jie
tai.yu.jie@rhbgroup.com

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)
Research by PB
Underperform - TP of RM0.80

"Barely Break-even"

Chin Well Holdings (Chin Well) reported weaker net profit of RM0.3m (-97.0% YoY, -90.1% QoQ) for 2QFY24 on lower revenue and reduced profit margin. Cumulative 6MFY24 reported net profit of RM2.8m (-38.2% YoY) was below both our and consensus expectations, accounting for only 10.5% and 8.7% of full year estimates, respectively. The discrepancy was largely due to weaker than expected demand from European market and depressed average selling price (ASP) resulting from price competition from China. The outlook for the Group remains challenging, particularly in Europe as demand continues to be affected by the on-going geopolitical conflicts and higher manufacturing cost. We cut our FY24-25F earnings forecasts by an average of 20% to account for a slower demand growth recovery. Consequently, our PE-based target price revised to RM0.80 (RM1.00 previously) and retain our Underperform call on Chin Well. No dividend was declared for the current quarter.

Analyst(s):
Denny Oh
research@publicinvestbank.com.my

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)
Research by TA
Sell - TP of RM1.11

"Disappointing 1HFY24 Results"

 We expect the group’s outlook in the upcoming quarters to remain uncertain. The outbreak of the Israel-Hamas war, the ongoing UkraineRussia conflict, escalating tensions in US-China relations, and the looming possibility of a recession in major markets have collectively adversely impacted global economic sentiment. This, in turn, has dampened the global demand for fastener products.
 Despite uncertainties, we anticipate a gradual improvement in the outlook, driven by the expected restart of major infrastructure construction projects in Malaysia.

Analyst(s):
Raymond Ng Ing Yeow
raymondng@ta.com.my

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

@Jinnsern oh didnt know $CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD) has come off quite a bit last year. Probably can take a look for div play, especially EU sales might be coming back.

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD) - A proxy for cyclical play

Strong BS position; Consistent dividend payout; Close correlation between its net margin vs steel price trend.

A potential candidate to ride, pending the rebound in construction activity in M'sia and uptick of economy in Europe and US.