CAELY EYES REGIONAL EXPANSION

Company in talks with China-based lingerie companies and may list undergarments manufacturing unit

CAELY Holdings Bhd plans to expand its undergarments business through potential collaboration with lingerie companies in the region.

Executive chairman Datin Fong Nyok Yoon said in order to create sustainable earnings and business prospects for Caely, the company was in talks with several China-based lingerie companies on potential collaboration.

“This will open the door for Caely to penetrate the Chinese market,” she said in a statement.

Established in 1986, Caely’s principal businesses are undergarments manufacturing, property development and construction.

Caely is Malaysia’s leading undergarments manufacturer, catering to the local and export markets under its own brand as well as for other original equipment manufacturer brands.

Caely exports its products to Europe, Canada and the United States, among others.

Fong said the company foresaw robust growth potential in the ladies’ undergarment industry.

This was 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 planned to leverage on Ni Hsin Resources Bhd’s existing presence in Italy, which was recognised as the fashion capital of the world, to market Caely’s lingerie products.

“We are also looking to acquire companies that have synergies with Caely’s businesses,” she added.

Ni Hsin, listed on Bursa Malaysia Securities Bhd, emerged as a substantial shareholder of Caely on April 6 after acquiring a 7.26 per cent stake over the past 12 months.

Ni Hsin further increased its stake to 13.62 per cent as at April 16.

Fong said Caely’s mediumterm plans would be to grow its undergarments segment until it was ripe for monetisation via a potential spin-off listing of its undergarments manufacturing division, among other options.

“The listing will help Caely unlock value and get higher valuations, which will reward our shareholders,” she said.

The Hong Kong Stock Exchange recently saw a number of initial public offerings by Chinabased undergarments companies, she added.