There is good demand from existing customers in terms of replacement orders for its industrial hoses as well as from new customers.aws账号（www.2km.me）提供aws账号、aws全区号、aws32v账号、亚马逊云账号出售，提供api ，质量稳定，数量持续。另有售azure oracle linode等账号.
PETALING JAYA: The demand for Wellcall Holdings Bhd products is expected to remain robust in the next few quarters as its strong order backlog will support sales till the third quarter of next year.
There is good demand from existing customers in terms of replacement orders for its industrial hoses as well as from new customers.
The group’s utilisation rate is expected to hover around 70%-75% for the financial year 2022 (FY22), which is above its average utilisation rate of 60%-65% in FY21.
According to CGS-CIMB Research, Wellcall’s utilisation rate in FY21 was low due to the various iterations of Malaysia’s movement control order (MCO) as well as a weak global economy.
Wellcall also plans to raise its selling prices in stages in the following quarters with rising raw material prices.
The prices for its raw materials such as nitrile, natural rubber and chemicals rose by an estimated 10%-15% in the past six months and accounts for 55%-65% of its total cost.WellCall HQ Ipoh
The group has completed its first round of price hikes (3%-5%) for 30%-40% of its customer base for the first quarter of 2022 and more price increases are on the cards.
The increase is in stages to help its customers adjust their order volumes, the research house said in a report.
Wellcall reported a rise in revenue and core net profit of 16.4% and 16.3%, respectively, year-on-year for the first nine months of this year.
This was led by improved sales volume and stronger global demand (the United States and Asian markets), more profitable sales mix and better cost control.
Based on that, the research house did not make any adjustments to its FY22-FY24 earnings per share forecasts.
It likes the stock because of the defensive demand for industrial hoses (widely applicable globally in various industries) in the long run, its strong balance sheet (net cash of RM61.6mil at end-fourth quarter 2021) and an attractive forecast dividend yield of 5.1%-6.3% for FY22-FY24.
Wellcall’s dividend payout ratio (DPR) was relatively flat in the range of 76%-84% over FY17-FY20.
CGS-CIMB Research forecast a more conservative DPR of about 75% in FY22-FY24, with dividend yields of 5.1%-6.3%.
It noted that the potential re-rating catalysts for the stock includes stronger-than-expected demand for industrial hoses.
The downside risks cited are weaker-than-expected exports and local demand for industrial hoses as well as stiffer-than-expected competition.
It has retained an “add’’ call on the stock at RM1.36 per share.