Good morning.
Today, we feature a note on Caely Holdings Berhad in our FundTech Radar – 17th Apr 2018. The company is *one of the biggest manufacturers and exporters of lingerie in Malaysia*. In FY17, total revenue for manufacturing segment was made up of 52.7% export market.
Fundamental Stance
· Since CAELY started out its property development and construction business in 2013, its bottom line has been volatile due to the fluctuating profit margin of the segment.
· Net gearing stands at 0.2x as at 31 Dec 2017.
· Dividend yield of 0.8% for FY17, with a 20% div. payout.
· Despite current challenging business conditions, CAELY is expected to exercise prudent measures to mitigate the challenges.
· The company expects the property market to remain subdued.
· Bonus issue of warrants on the basis of 1 warrant for every 2 existing ordinary shares. Ex-date is 17 Apr 2018.
· Ni Hsin Resources Bhd, has recently emerged as a substantial shareholder in CAELY.
Technical Front
The uptrend appears to be resuming.
Resistances: 1.37/1.54/1.61
Supports: 1.13/1.04/0.90
The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.
This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
17th Apr 2018
Disclaimers: This distribution is by CIMB Investment Bank Berhad (“CIMB”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CIMB, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.
