somewhat a disappointing QR but still a good dividend stock to hold....should be brighter days ahead, hopefully no more impairment loss again...price still holding up after a lackluster QR, hope it will continue to move upwards.
Prospect The Board is optimistics that the Group will remain resilient and able to sustain its market share and positioning despite the challenges ahead in the global economy. The Group will continue to manage its operating costs and market share by responding swiftly to the fluctuation of supply and demand chain mechanism especially the elasticity of pricing arising from the freight and raw material costs. Nevertheless, the Group is positive towards the high demand for low and medium pressure industrial rubber hose that enables the Group to sustain and widen its market base positioning. Barring of unforseen circumstances and the vibrancy of the global economy sentiment, the Board believes that the Group's future prospects in the financial year ending 30 September 2023 continues to remain positive especially with the continuation of gradual increase in the momentum of global demand for industrial rubber hoses.
@Lim Yap, I saw a note in CIMB research report dd 9 Dec 2022 on Wellcall, that said that Wellcall recognised an impairment loss of RM2.9 million Q4FY2022 for its JV with Trelleborg. Wellcall was reported to have invested an initial capital of RM4.5 million in this JV which has been bleeding at RM1.0m to 1.5m every year since Jun 2021. I am not sure whehter Wellcall made any further impairment on this JV after Q4FY2022, but at least it has impaired 64% of its investment.
It was a disappointment as initially I thought this JV was promising in making breakthroughs in composite hoses which would enable multi-year growth to Wellcall, but it has so far not made any significant breakthrough.
@amateurJR, you seem to be more familiar with this product development. Now it is already 2 years past since the JV started in Jun 2021. When do you expect they will have a breakthrough in new composite products?
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