This article first appeared in Personal Wealth, The Edge Malaysia Weekly on July 20, 2020 - July 26, 2020

Jaycorp Bhd 

Jaycorp is an investment holding company. Its subsidiaries’ principal activities include wooden furniture manufacturing, pressure treatment and kiln drying of wood, biomass, corrugated carton packaging, general trading, property letting and general construction.

For its financial quarter ended April 30, Jaycorp recorded a revenue of RM56.8 million, down 13.89% from the previous corresponding quarter. Profit before tax fell 35.68% to RM3.3 million. The company attributed the poor results to the Covid-19 pandemic and the Movement Control Order imposed by the government.

The company expects the furniture segment, which remains its core business, to be challenging in both the domestic and international markets. It will continue to focus on controlling costs, exploring new markets and developing new products to achieve better profits and growth of the business. 

The stock is trading at a price-earnings ratio of 7.78 times. It closed at 98 sen on July 15, giving the company a market capitalisation of RM132 million, according to Bloomberg.

Wellcall Holdings Bhd

Wellcall Holdings is an investment holding company. The principal activity of its wholly-owned subsidiary is manufacturing industrial rubber hoses for its customers, who are mainly in the business of distributing rubber hoses to original equipment manufacturers. 

For its financial quarter ended March 31, the company’s revenue declined 23% quarter on quarter to RM32 million. This was attributed to a softening of the industrial rubber hose market due to the Covid-19 pandemic. Profit before tax declined 16% to RM9.3 million. 

The company has taken initiatives to mitigate the disruption to its business operations caused by the Movement Control Order and exposure to lockdowns globally. It will focus on innovation to maintain product quality and enhance production efficiencies to manage operating costs. 

The counter is trading at a price-earnings ratio of 11.59 times. It closed at 83 sen on July 15, giving the company a market capitalisation of RM413 million, according to Bloomberg.

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