This article first appeared in The Edge Malaysia Weekly on August 17, 2026 - August 23, 2026

Industrial hose manufacturer Wellcall Holdings Bhd (KL:WELLCAL) has once again proven to be an outperformer, driven by its exceptional ability to generate a high return on equity (ROE).

The group — Malaysia’s largest manufacturer of specialised rubber hoses engineered for industrial use — achieved an impressive weighted ROE of 34.1% over the last three financial years, based on The Edge Malaysia Centurion Club Corporate Awards methodology, significantly outpacing its industry peers.

This strong performance came despite a recent moderation in sales and earnings following the post-pandemic peak in the financial year ended Sept 30, 2023 (FY2023). As supply chains stabilised, demand for low- and medium-pressure industrial rubber hoses normalised.

Net profit, which surged 66% to a record RM55.3 million in FY2023 with a 23.7% rise in revenue to RM217.16 million, eased to RM46.9 million on revenue of RM209.4 million in FY2024. In FY2025, net profit held steady at RM46.6 million, though revenue moderated further to RM184.3 million.

Throughout this period, Wellcall consistently delivered gross profit margins above 30%, with zero debt, while keeping its ROE above 30% — 41.8% in FY2023, 33.1% in FY2024 and 31.7% in FY2025 — making Wellcall an elite player in the industrial products and services space. This achievement earned the group the award for Highest Return on Equity Over Three Years for the third consecutive year.

Underpinning its strong financial performance is an equally strong balance sheet. The Main Market-listed group, which made its debut on the then Second Board of Bursa Malaysia in July 2006, has been debt-free since FY2018. Its net cash position stood at RM44.15 million at end-FY2025, while shareholder funds grew steadily, from RM124.6 million in FY2022 to RM150.9 million in FY2025, reflecting its ability to consistently expand its net asset base through retained earnings.

This asset growth was achieved alongside generous cash distributions. After paying out 104.6% of its net earnings in FY2022, Wellcall maintained strong payout ratios of 73.9% in FY2023, 87.0% in FY2024 and 85.5% in FY2025 — the last by paying 8 sen per share or a total of RM39.84 million.

The group has now exceeded its dividend policy commitment of distributing at least 50% of its annual net profit for six consecutive years.

“We remain committed to our dividend payout policy of distributing at least 50% of our net profit and have, in the past 17 years, often exceeded this level,” Wellcall co-founder and group managing director Huang Sha told The Edge in an interview last year. In total, the group has paid over RM502 million as dividends from 2006 to 2025.

Huang, 69, a Taiwanese national and Malaysian permanent resident, was appointed to the board in April 2006. He owns a 3.43% stake in Wellcall. Non-executive director Tan Kang Seng is the sole substantial shareholder of Wellcall with 11.58% equity interest, of which 11.24% is held via Maximum Perspective Sdn Bhd.

The group’s disciplined management has also attracted institutional backing, with Kumpulan Wang Persaraan (Diperbadankan) or KWAP, the Employees Provident Fund, Public SmallCap Fund, Public Islamic Opportunities Fund and Fortress Value Tactical Fund among its top 30 shareholders.

Wellcall operates three plants with a total built-up area of 526,000 sq ft. On average, its monthly capacity across all sites is estimated to be over two million linear metres per shift, fulfilling about 100 to 120 containers of orders monthly.

About 90% of its sales are exported to more than 70 countries, spanning North and South America, Europe, Asia, Australasia and the Middle East. Serving approximately 200 customers, Wellcall’s products cater to a wide range of applications across various industries, including oil and gas, automotive, food and beverage manufacturing, marine and various application markets.

Wellcall is actively seeking new business opportunities across different geographical regions, according to Huang. “The industrial hose sector remains resilient due to its essential role across various industries, and we continue to see stable demand from our key markets.”

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