Forum : Stock: [CLASSITA]: CLASSITA HOLDINGS BERHAD

KUALA LUMPUR: Caely Holdings Bhd (CHB) is expecting a shift in consumer purchasing behaviour in the next several years, with online purchases becoming the major purchase trend.

Executive director and chief executive officer Charles Lim Chee Pang said the Malaysian society is evolving into a more prosperous lifestyle, which translates into an increased demand over choice and variety in lingerie supply.

"We are restructuring our retail division to empower them with e-commerce capabilities. Our warehouse is now fully e-commerce-ready.

"Our e-commerce marketing division is also working with marketing partners with more experience in delivering results. We will continue to leverage online marketing efforts to capture new and emerging market share," he told The New Straits Times.

winetime

525 posts

Posted by winetime > 2022-04-07 08:43 | Report Abuse

He said the improvements in the material would also see a change in consumer preference for comfort and lifestyle.

According to Charles, the company has budgeted approximately RM200,000 this year for information technology (IT) system improvement.

He stated that the company has no concrete plans for a standalone online e-commerce platform as e-commerce activities are within the marketing budget.

"Higher spending power in the middle-income group will continue to drive the demand in lifestyle changes where occasional wear for various activities is becoming more common.

"The limiting factor, however, is the challenge of increasing cost of living where you will see lower-income groups tend to lengthen the replacement cycle (of their lingerie).

"Adding to that, CHB is also aiming to challenge the top spot in nursing lingerie, currently occupied by an international brand that has been in the market long," he said.

Being one of the largest lingerie manufacturers in Malaysia, CHB has a substantial market share in woman's nursing lingerie in Malaysia under the brand Lunavie, commanding a market share close to 40 per cent.

winetime

525 posts

Posted by winetime > 2022-04-07 08:43 | Report Abuse

Other lingerie types are all exported to Europe and North America market.

Charles also pointed out that CHB will continue its initiatives to exert dominance in the nursing market moving forward.

"E-commerce will be our primary growth channel in the coming years.

"We are also exploring and developing new product lines to compete with other international brands for new market shares.

"We plan to be more aggressive in marketing and expanding into other lady care products and pre-teen products," Charles said when asked about the company's marketing plan for 2022.

Outside Malaysia, original equipment manufacture (OEM) channels account for most of CHB's sales in the European and North American markets.

For the Malaysian market, products are sold under two brands, namely, Caely and Lunavie.

"We are engaging a sub-contractor from Indonesia to strengthen our production capacity since early March 2022.

"We are also discussing with our joint venture (JV) partner from Indonesia to set up a new manufacturing plant to cater to the additional market demand," Charles said.

winetime

525 posts

Posted by winetime > 2022-04-07 08:43 | Report Abuse

On earnings, CHB's revenue for the third quarter (Q3) financial year ending 31 March 2022 (FY22) stood at RM15.95 million against RM18.26 million in Q3 FY21.

According to a Bursa Malaysia filing, The RM2.31 million decrease in revenue came from the drop in sales of RM1.90 million and RM0.50 million in the manufacturing and property & construction segments, respectively.

The company recorded a profit before tax (PBT) of RM1.61 million in Q3 FY22 compared to RM1.20 million in Q3 FY21.

The higher PBT recorded was mainly from the recovery of RM0.41 million received from the receivables of the property & construction segment impaired in the fourth quarter of the last financial year.

Moving on, Charles said the recent appointment of Azri Azerai and Datuk Seri Mazlan Lazim as independent and non-executive directors bodes well for the company.

"Azri Azerai is a valuable addition to our board. He is young and energetic and can provide different perspectives and views to the management. In addition, he is well regarded in the corporate sector and has a wide network of corporate resources which Caely can tap into for future growth," Charles said.

Mazlan was appointed on 29 March 2022 after serving a long and distinguished career with the Royal Malaysian Police, most recently serving as the deputy inspector-general.

We look forward to working with them and getting their views and perspectives, and input for the next phase of CHB's growth.

Azri Azerai, who has a history in corporate finance and restructuring, said he would support CHB's board of directors in pursuing mergers and acquisitions (M&A) prospects, expanding and improving the company's existing business.

"CHB's position as one of the largest manufacturers and exporters of lingerie in Malaysia certainly caught my attention.

"The company has been in the industry for more than 30 years, which gives the company an unassailable track record and brand image. These 'intangible' assets, experiences and brand image are the values that I see in CHB.

"I hope to also add value to the company by lending my 'Gen Z' views on the business - a market where CHB is not dominant," he said.

Azri Azerai stated that he is constantly looking for ways to give value to all stakeholders, whether by introducing new initiatives or value-added perspectives to the board and team.

"One region that CHB has not tapped into in the Middle East, an area worth exploring," he said.

Damien0111

137 posts

Posted by Damien0111 > 2022-04-07 13:18 | Report Abuse

Caely Holdings Bhd hopes to set up a joint-venture (JV) in Indonesia this year to increase its production capacity to cater to the growing global demand for lingerie.

Chief executive officer Gok Ching Hee said the company is currently in the midst of finalising the terms and conditions of the agreement with a potential JV partner, that would then invest in a plant in the republic.

“Our JV partner will invest in the plant, which will likely be ready in May or June this year. We target to sign the JV agreement by the end of March,”

Damien0111

137 posts

Posted by Damien0111 > 2022-04-07 13:18 | Report Abuse

Gok said Caely’s current main export destinations for its original equipment manufacturer undergarment products are Germany, the United States and Canada, however, it has recently been getting more enquiries from companies in Turkey, France and Australia.

He pointed out that the enquiries from these companies were already double Caely’s existing production capacity, which led to the company's decision to expand further, with the plant in Indonesia aiming to increase capacity threefold, compared with its factory in Teluk Intan, Perak.

“We believe that this recent large amount of orders we are getting is due to companies shifting away from sourcing their products in China and that we are benefitting from the trade war in the international arena.

“Judging by the increasing momentum of orders we are getting, we are confident that we will use up the capacity of the Indonesian plant,” he said.

Damien0111

137 posts

Posted by Damien0111 > 2022-04-07 13:19 | Report Abuse

A good company will keep progress, expanding

TSHRicky

154 posts

Posted by TSHRicky > 2022-04-07 13:25 | Report Abuse

0.8 very soon, breakout within this few weeks

TSHRicky

154 posts

Posted by TSHRicky > 2022-04-07 13:25 | Report Abuse

demm sharks are coming in

kelv

18 posts

Posted by kelv > 2022-04-08 10:00 | Report Abuse

"Azri Azerai stated that he is constantly looking for ways to give value to all stakeholders"
ROFLMAO. Just like how Bintai dropped from 0.37 to 0.14(now 0.16)? And the never ever happened flying ship company in Melaka? More like sinking ship.

winetime

525 posts

Posted by winetime > 2022-04-08 10:39 | Report Abuse

Azri Azerai is too young... Still got lot space to growth.

winetime

525 posts

Posted by winetime > 2022-04-08 10:42 | Report Abuse

Anyhow Caely recently is just back to track... Time for monitor and enter (0.48-0.51) is good to go.

TSHRicky

154 posts

Posted by TSHRicky > 2022-04-08 13:59 | Report Abuse

market back on its own track, time to retrieve back what have lost in this past 2 years

TSHRicky

154 posts

Posted by TSHRicky > 2022-04-08 14:00 | Report Abuse

price cheaper, safety margin has more room, make smart choice

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