“The Group has delivered double-digit net profit margins in the past few years ranging from 18.5% to 26.1% since FY15.

“This is mainly underpinned by: 1) favourable cost/sales perspective in which costs are mostly denominated in local currency, ringgit whilst export proceeds are in USD; 2) orders are mostly on customisation to suit customer needs; 3) effective cost management and productivity, i.e. lower procurement costs as well as maximisation of raw material usage as to reduce wastage and scrap in production process,” it said.

KUALA LUMPUR (Oct 27): JF Apex Research has initiated coverage on Wellcall Holdings Bhd (Wellcall) at RM1.02 with a Buy call and a target price of RM1.21, based on PE of 16.4x (5-year average PE) FY21F EPS of 7.4 sen.

In a note today, the research house said that Wellcall is a fundamentally sound company which renders golden opportunity for investors to ride on cyclical stock play as the Group is well poised to benefit from economic recovery upon successful launch of vaccine on Covid-19 and reopening of business activities.