KUALA LUMPUR (Apr 6): Stainless steel multi-ply cookware manufacturer Ni Hsin Resources Bhd has emerged as a substantial shareholder in Caely Holdings Bhd, a lingerie manufacturer-cum-property developer.

In a filing with Bursa Malaysia today, Ni Hsin said it had acquired 5.81 million shares in Caely for RM4.62 million, representing a 7.26% stake, over the past 12 months.

Ni Hsin said there is synergy for both Caely and itself whereby they can leverage on each other’s customer base in the overseas market segment.

“Ni Hsin can also benefit from Caely’s direct selling licence to market our PENTOLI products. Ni Hsin intends to seek board representation in Caely,” the filing read.

Ni Hsin went on to say that Caely has a healthy business and is a local leader in the ladies undergarment industry.

“It has established itself as a leading OEM manufacturer in the overseas market in the United States, Europe and East Asian region. The founders of Caely have more than 30 years experience in this industry. There is huge potential for growth in the ladies undergarment industry as Caely is financially healthy,” it said.

Caely’s share price declined 10 sen or 9.09% to RM1 today, giving it a market capitalisation of RM83.2 million.

Year-to-date, the counter has gained by 20.48% from 83 sen on Dec 29 last year.

Ni Hsin, on the other hand, traded unchanged at 15.5 sen today, giving it a market capitalisation of RM45.66 million.

Unlike Caely, Ni Hsin’s share price has been declining gradually since early November last year.

Year-to-date, Ni Hsin's share price fell by 32.61% from 23 sen on Dec 29 last year.