Wellcall’s target price raised on joint venture

TheStar Thu, Jan 17, 2019 09:23am - 5 years View Original


The composite hose manufacturing plant, which shall be located within the vicinity of Wellcall’s existing facility, is targeted for commissioning by end-2019, with two production lines and auxiliary equipment

The composite hose manufacturing plant, which shall be located within the vicinity of Wellcall’s existing facility, is targeted for commissioning by end-2019, with two production lines and auxiliary equipment

PETALING JAYA: CIMB Research has taken a positive view on industrial rubber hose manufacturer Wellcall Holdings Bhd ’s joint venture (JV) with Swedish firm Trelleborg Holding AB (THAB) to produce and market composite hose and fittings.

The research house has raised its target price for Wellcall to RM1.56 from RM1.28, or by 21.9%, as it narrows its discounted price-earnings (P/E) of 22 times for Kossan Rubber Industries Bhd from 30% to 20%.

   

It said the lower discount is to reflect potential earnings from the JV over the next few years.

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