Stock Digest - Wellspire Holdings Bhd - Experienced Distributor Backed By Wide Distribution Network

Thailand-based consumer packaged foods distributor who serves as an exclusive distributor for ChaCha brand products for Thailand market, distributing to 43 distribution points covering Central, Northeast, Northern, and Southern regions. We project core earnings to grow from (i) improved demand amid economic recovery, (ii) reduced purchase price from suppliers resulted from lower raw material, packaging and energy cost, as well as (iii) product range expansion. Wellspire is valued by pegging its FY23f EPS of 1.8 sen to 15x PE, leading to a FV of RM0.27.