Friday, 6 May 2016

Caely Holdings - Lingerie Maker Benefits From Weak Ringgit

Publish date: Mon, 25 Jan 2016, 11:26 PM 

Caley is principally involved in the manufacturing and sale of lingerie under the Caely and Classita brand. It is also involved in construction and property development.

The company has market cap of RM40 mil (RM0.50 x 80 mil shares).

Based on net assets of RM80 mil, loans of RM25 mil and cash of RM7.2 mil, net gearing is 0.22 times.

The group exports almost all its lingerie products :-

As shown in table above, almost all its sales are derived from overseas. The RM46.29 mil Malaysia revenue is related to its construction and property development business. 

Due to high overseas sales, the group's lingerie division did very well in September 2015 quarter. Operating margin expanded from 4.8% to 14.7%. 

In the latest quarter, the group reported EPS 2.3 of sen. Lingerie division was the star performer.

Its property projects are located in Tapah, Perak as well as Gombak, Selangor.

The group has a closed relationship with Felcra and managed to secure some construction contracts from them. They probably known each other through geographical proximity. Caely is based in Teluk Intan, Perak while Felcra has a hot spring resort near Tapah.  

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