WELLSPIRE HOLDINGS BERHAD

Copyright@http://lchipo.blogspot.com/
Follow us on facebook: https://www.facebook.com/LCH-Trading-Signal-103388431222067/

Open to apply: 27/12/2022
Close to apply: 04/01/2023
Balloting: 06/01/2023
Listing date: 16/01/2023

Share Capital
Market cap: RM163.789 mil 
Total Shares: 712.125mil shares
 
Industry CARG (2017-2021)
Revenue of wholesale of food (Thai) CAGR: 8.1% 
Industry competitors comparison (net profit margin%)
Wellspire Group: 11.3%
Sino-Pacific Trading (Thailand): 4.6%
Kor Chaisaeng: 0.8%
Heritage Marketing Co., Ltd: 0.5%
Sun Foods Trading Co., Ltd: 0.4%
Modern Food Trading Co., Ltd: 0.1%
Chailai Intertrade Co., Ltd: 9.2%
Capmax Trading Co., Ltd: 2.1%

Business (FYE 2021)
Distribution of consumer packaged foods focusing on snack foods in Thailand.
- Sunflower seeds: 92.07%
- Other Snack food, other seed and nuts, others: 7.93% 

Fundamental
1.Market: Ace Market
2.Price: RM0.23
3.P/E: 22.98 @ RM0.01 (FPE2022)
4.ROE(Pro Forma III): 8.11%
5.ROE: 106%(FYE2021), 80.41%(FYE2020), 98.2%(FYE2019)
6.Net asset: RM0.067
7.Total debt to current asset after IPO: 0.19 (Debt: 11.491mil, Non-Current Asset: 2.624mil, Current asset: 61.607mil)
8.Dividend policy: Propose 30% dividend policy. 
9. Shariah starus: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FPE 30Jun, 6mth): RM60.509 mil (Eps: 0.0015), PAT:3.54%
2021 (FYE 31Dec): RM136.707 mil (Eps: 0.0156),PAT: 11.27%
2020 (FYE 31Dec): RM119.706 mil (Eps: 0.0166),PAT: 13.16%
2019 (FYE 31Dec): RM58.799 mil (Eps: 0.0044),PAT: 7.06%

Operating cashflow vs PBT
2022: 75.56%
2021: 77.71%
2020: 23.36%
2019: -ve

Major customer (2022)
1. CP All: 44.55%
2. Valueplus: 25.61%
3. Siam Makro: 14.18%
4. Big C: 5.72%
5. Ek-Chai Distribution: 5.03%
***total 95.09%

Major Sharesholders
1. Mo Guopiao: 28.16%
2. Silver Line Capital: 17.03%
3. He Haibin: 11.85%
4. Capital Pairing: 7.15%

Directors & Key Management Remuneration for FYE2023 (from Revenue & other income 2022)
Total director remuneration: RM2.214mil
key management remuneration: RM0.550mil - RM0.700mil
total (max): RM2.914mil or 7.63% 

Use of funds
1. Acquire/construct a warehouse and operational facility in Thailand: 55.83%
2. Working capital: 20.79%
3. Listing Expenses: 23.38%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is a business that too focus on single product brand, which also is their higher risk contribution. They company need to increase the revenue contribution from other product. 

*Valuation is only personal opinion & view. Perception & forecast will change if any new quarter result release. Reader take their own risk & should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company