KUALA LUMPUR: Caely Holdings Bhd plans to expand its undergarments business through potential collaboration with lingerie companies in the region.
Executive chairperson Datin Fong Nyok Yoon said in order to create an enhanced and sustainable earnings and business prospects for Caely, the company is currently in talks with several China-based lingerie companies for potential collaboration.
“This will open the door for Caely to penetrate into the vast Chinese market,” she said in a statement.
Established in 1986, the principal businesses of Caely are undergarments manufacturing, property development and construction with a total annual revenue of more than RM100 million.
Caely is Malaysia’s leading undergarments manufacturer, catering to both local and export markets, under its own brand as well as other OEM brands.
Caely sells its products mainly to Europe, Canada, United States of America and other countries.
Further, Fong said the company foresees robust growth potential for the ladies’ undergarment industry.
This is largely underpinned by the increasing number of fashion-centric women and their higher purchasing power in the region, she said.
Besides targeting the growing affluent Chinese market, Fong said the company also plans to leverage on Ni Hsin Resources Bhd’s existing presence in Italy, Europe, which is widely recognised as the fashion country of the world to market the lingerie products by Caely, bringing it to the next international level.
“We are also looking to acquire companies that have synergies with the businesses of Caely,” she added.
Ni Hsin, listed on Bursa Malaysia Securities Bhd, emerged as Caely’s substantial shareholder on April 6 after acquiring 7.26 per cent stake in Caely over the past 12 months.
Ni Hsin has further increased its stake to 13.62 per cent as at April 16, 2018.
Fong said Caely’s medium term plans would be to grow the undergarments segment until it is ripe for monetising via a potential spin off listing of its undergarments manufacturing division in the appropriate stock exchange as deemed fit and relevant, amongst other options.
“The listing will help Caely unlock value and get higher valuations which will reward our shareholders,” she said.
Recently, the Hong Kong Stock Exchange saw a number of initial public offerings (IPOs) of undergarments companies based in China, she added.