Carlo Rino Group Bhd (CARLORINO, 0335) is scheduled to transfer its listing to the Bursa Ace Market today. CARLORINO is a local designer and retailer specializing in trendy and fashionable women’s products, namely handbags, footwear, eyewear and accessories, available via boutiques, departmental store counters, and e-commerce marketplaces. We expect CARLORINO to register core net earnings of RM22.3m and RM24.2m for FY25F and FY26F respectively.

BUY with a fair value of RM0.34 premised on a weighted average 15x PER (regional sector average) on FY25F EPS.

To strengthen its brand presence, CARLORINO has allocated RM15m from its IPO proceeds for the construction of a new flagship boutique strategically located in Jalan Imbi, Kuala Lumpur. Expected to be completed by 1Q 2027, the boutique with an estimated total built-up area of 4,000 sqft, provides a comfortable in-store experience while showcasing an expanded range of products.

CARLORINO is also looking to expand its presence across Southeast Asia over the next two to three years, riding on the e- commerce industry trend, which is projected to grow at a CAGR of 11.4% from 2023 to 2027. This expansion will focus on enhancing online visibility through search engine optimisation and leveraging on third-party e-commerce platforms such as Shopee, Lazada, and TikTok to promote its products in key overseas markets, particularly in Thailand and Indonesia. This segment has already contributed 13% to revenue and achieved a strong 19% YoY growth in FY24.

The refurbishment of boutiques and departmental store counters is essential to maintain a fresh and engaging shopping experience while increasing brand visibility. Thus, CARLORINO has allocated RM3.5m, ensuring periodic updates to retail spaces that reflect modern aesthetics and meet evolving customer expectations. This initiative reflects CARLORINO’s focus on optimizing the retail experience to reinforce its market positioning and drive long-term revenue growth.

All in all, CARLORINO maintains a strong balance sheet with a net cash position backed by its historical financial performance. This solid foundation ensures the company is well-equipped to sustain financial strength and drive long-term growth post- listing.

Source: Rakuten Research - 18 Dec 2024

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo