KUALA LUMPUR (April 23): Undergarments manufacturer Caely Holdings Bhd said today that it is in talks with several China-based lingerie companies for a potential collaboration, as part of its plans to expand its undergarments business in the region.

"This will open the door for Caely to penetrate into the vast Chinese market," its executive chairperson Datin Fong Nyok Yoon said in a statement today.

"We are also looking to acquire companies that have synergies with the businesses of Caely," Fong added.

Fong disclosed that Caely’s medium term plans would be to grow the undergarments segment until it is ripe for monetising, via a potential spin-off of its undergarments manufacturing division in the appropriate stock exchange as deemed fit and relevant, among other options.

"The listing will help Caely unlock value and get higher valuations which will reward our shareholders. Recently, the Hong Kong Stock Exchange saw a number of initial public offerings of undergarments companies based in China," she added.

Fong said the company foresees robust growth potential for the ladies’ undergarments industry, largely underpinned by the increasing number of fashion-centric women and their higher purchasing power in the region.

Besides targeting the growing affluent Chinese market, Fong said Caely also plans to leverage on Ni Hsin Resources Bhd’s existing presence in Italy in Europe, which is widely recognised as the fashion country of the world to market Caely's lingerie products, bringing it to the next international level.

Ni Hsin, which is principally engaged in the manufacture, sale and distribution of premium stainless-steel cookware products, convex mirrors and clad metal, has emerged as Caely’s substantial shareholder on April 6, after acquiring 7.26% stake in Caely over the past 12 months. Ni Hsin has further increased its stake to 13.62% as at April 16.

In terms of its positive synergies, Fong said Caely is exploring collaborative initiatives with Ni Hsin to market its Pentoli products via Caely’s direct selling licence, various marketing channels and joint training efforts, as this will allow us to capture the joint synergistic economic benefits.

With regards to its property development and construction segment, Fong said the focus would remain on building affordable houses, with more projects in the pipeline.

Caely currently manufactures undergarments under its own brand, as well as other original equipment manufacturer brands. It sells its products mainly to Europe, Canada and the US.

At 3.09pm, Caely shares were up 2 sen or 1.77% at RM1.15, with 2.15 million shares done, bringing a market capitalisation of RM90.4 million.