Casa Holdings

I thought the recently released (dated 29Nov10) FY10 (ended 30Sep10)full-year results announcement makes interesting reading.....
http://info.sgx.com/webcoranncatth.nsf/V...A001F2F55/$file/Casa.Holdings.Announ.Full.Year.Result.31.Sept.2010.pdf?openelement

While Casa's main business of distributing kitchen stoves, cooker hoods, and other home appliances is nothing to shout about, it appears quite well managed and does have quite a good market presence in Singapore and Malaysia (through 27.39%-owned listed associate Fiamma Holdings Bhd) supported by established brands including ELBA, Ariston, etc. Casa also has a 50%-owned j-v in PRC producing some of its own products.

Casa's business has done quite well in FY10 and has declared a $0.01/share Final dividend (vs. $0.005/share in FY09).

FY09 AR....
http://info.sgx.com/listprosp.nsf/07aed3...b0012ed17/$FILE/CASA_combined.pdf

Saw some of their wares at isetan. Pretty high end stuffs.

(01-12-2010, 07:42 PM)memphisb Wrote: Saw some of their wares at isetan. Pretty high end stuffs.

You can review Casa's wide range of products below.....
http://www.elba.com.sg/home.aspx
http://www.ariston-heater.com.sg/about.html
http://www.rubine.com.sg/
http://www.ef.com.sg/home.html

The products go into many homes - the rich, middle-income, HDB - in Singapore.

this is a rich TaiTai killer's counter :p..just like UOB targeted the lady cards...

(01-12-2010, 08:41 PM)dydx Wrote:

(01-12-2010, 07:42 PM)memphisb Wrote: Saw some of their wares at isetan. Pretty high end stuffs.

You can review Casa's wide range of products below.....
http://www.elba.com.sg/home.aspx
http://www.ariston-heater.com.sg/about.html
http://www.rubine.com.sg/
http://www.ef.com.sg/home.html

The products go into many homes - the rich, middle-income, HDB - in Singapore.

Thanks mate, I will have a closer look at them from now.

Apparently SGX didn't quite like the way Casa had presented its FY10 full-year results announcement and has queried the company on a few points. Accordingly, Casa has given its response.....
http://info.sgx.com/webcoranncatth.nsf/V...E0017D063/$file/Reply.to.SGX.queries.on.the.full.year.results.announcement.pdf?openelement

From Casa's response and the additional numbers given, it is even clearer now that both the Trading (retail/wholesale/project sales of home and electrical appliances) and Manufacturing (undertaken by 50/50 PRC joint-venture, Panan Teco Electrical Appliances Co Ltd (Teco), producing stoves and cooker hoods for OEMs and export) divisions have registered large revenue increases. It is relevant to note that Teco's financial numbers have been consolidated into Casa's group financials on a line-by-line basis.

In the response, Casa has also confirmed that Fiamma Holdings Bhd (listed in Bursa
Malaysia) is the associate which has also contributed to the substantial profit increase. More info on Fiamma.....
http://www.fiamma.com.my/

Actually, when we think about it, apart from its Manufacturing division in PRC, Casa's business volume and profiability are very much dependent on the state of the private property development and general housing market in Singapore. This simply means that when the many current new private residential development projects are eventually completed, Casa should be shipping out and installing many appliances into them, and booking in the related revenue and profits.

sounds similar to htl which also support home furnishing business...
btw ikea, which they revealed 1st time in their history, reported a record profit recently even though economy is just recovering from the crisis

(04-12-2010, 12:10 AM)pianist Wrote: sounds similar to htl which also support home furnishing business...

Casa's business is different from that of HTL. Essentially Casa's is that of an exclusive importer/wholesaler of branded kitchen and home appliances, many items (e.g. like water heaters, gas stoves, etc.) of which are subject to meeting the local safety requirements. Casa sells through retailers, sub-wholesalers, and to property developers (for project sales) in mainly SGD. This business has small capex requirements.

Whereas HTL is essentially mainly a manufacturer based in PRC, exporting mainly leather safas to the world market and sells in various currencies. This business has big capex requirements.

thanks. yup htl is not a suitable comparison.
there was no dividends declared from 2003 to 2008 and apparently in fy2006 they made a loss of about $2.4m. i also noted that they have kitchen stoves, however there are no induction cookers which are quite popular in today's households?
apart from the above, the financials are good and prospects look good too in view of the upcoming many new housing developments that will be completing, but i wonder what might happen after this wave of prospect?

(05-12-2010, 12:33 AM)pianist Wrote: there was no dividends declared from 2003 to 2008 and apparently in fy2006 they made a loss of about $2.4m. i also noted that they have kitchen stoves, however there are no induction cookers which are quite popular in today's households?
apart from the above, the financials are good and prospects look good too in view of the upcoming many new housing developments that will be completing, but i wonder what might happen after this wave of prospect?

I have not dug into Casa's distant past, but including the latest FY10, Casa based on the existing operations now has 3 consecutive years of steady profitability and dividend payment record.

To understand Casa's market position in supplying kitchen appliances and water heaters to new private housing projects, we can simply review the lists of property developer clients and projects undertaken from the "Elba" and "Ariston" brand websites.....
http://www.elba.com.sg/projects.aspx
http://www.ariston-heater.com.sg/projects.html

We should bear in mind the "Elba" brand covers practically all the common kitchen applicances a typical mass-market condo project would provide. Being a European brand, "Elba" is already an established mass-market brand for developers and consumers in Singapore.

While "Elba" does not seem to have induction cookers, we should bear in mind most mass-market condo projects have gas hob as a standard appliance. Having said that, most new higher-end condo projects now have built-in induction hobs in the dry-kitchen and gas hobs in the wet-kitchen.

Apart from new condo projects, Casa sells to the mass up-grading or secondary market via a well-established network of independently-owned local dealers.....
http://www.elba.com.sg/dealers.aspx
http://www.ariston-heater.com.sg/dealers.html