Koda    Last:0.34   -

KODA

 

 

PhillipCapital trims TP to $1.10.    I think should trim to 30 cents

PhillipTan      ( Date: 31-Aug-2021 04:56) Posted: PhillipCapital trims target price for Koda on pandemic-related disruptions at manufacturing plants PhillipCapital analyst Vivian Ye has kept her " buy" call for furniture ODM manufacturer and brand owner Koda but with a lower target price of $1.10, after the company announced its 2HFY2021 ended June results on August 26. Koda' s 2HFY2021 results beat Ye' s expectations, with full-year revenue and earnings amounting to 116% and 107% of her forecasts. " The outperformance came from higher-than-expected manufacturing sales," she says in a August 30 research note.  Koda' s 2HFY2021 revenue grew 65% y-o-y to US$43.1 million, while earnings surged more than 20 times to US$4.3 million, driven by higher export sales especially to North America, increased contributions from retail and distribution and improved gross margins. Ye anticipates export sales momentum to the US to continue growing on the back of work-from-home arrangements amidst renewed virus-containment efforts. She notes that from January to June, US furniture imports increased 46.1% y-o-y to US$30.2 billion. In addition, Vietnam' s furniture exports excluding wood increased 47.4% y-o-y to US$1.8 billion, though Ye notes that exports fell 16.8% on a m-o-m basis in July as Covid-19 restrictions disrupted production. Both of Koda' s manufacturing plants - one in Malaysia and one in Vietnam - currently face Covid-19-related disruptions. In Malaysia, the government has allowed manufacturing firms to operate partially if at least 60% of their employees have been fully vaccinated and fully if 100% of their employees are fully vaccinated. She notes that Koda is working towards the progressive resumption of its Malaysian operations with higher full vaccination rates. In Vietnam, factories are allowed to operate at 70% capacity if all workers have received their first dose of vaccination, and at full capacity if all workers are fully vaccinated.  " Buffer stocks have minimised the financial impact from the disruptions. However, any longer-than-expected restrictions could affect the supply chain and inventory replenishment," Ye comments. She also anticipates expansion plans in China for Koda' s retail brand Commune to be partly affected by a recent surge in Covid-19 cases in several provinces in China which has sparked lockdowns, mass testing and travel restrictions. " Chinese officials, however, believe that the situation is generally manageable," she remarks. Given the disruptions, she has lowered her target price for Koda from $1.32 to $1.10 as she rolls over her 7-time ex-cash P/E to FY2022. " This is at the higher end of its historical five-year ex-cash P/E," she notes. Ye has lowered her FY2022 earnings forecast by 29% to US$0.7million, following cuts to her gross margin assumptions from 32% to 29.5% to reflect the production disruptions at Koda' s plants.    Nonetheless, she says catalysts are still expected from higher exports to US and an increase in production capacity.  Shares in Koda closed 0.5 cents or 0.62% higher at 81 cents on August 30.

 

This counter is KNN, earn 9.5 singapore cents only give 1 cent dividend. No wonder people always say family business is like that. Might as well delist the counter 

 

Koda financial results coming out with these few days, hope they can give some good dividends 

 

 

PhillipCapital trims target price for Koda on pandemic-related disruptions at manufacturing plants

PhillipCapital analyst Vivian Ye has kept her " buy" call for furniture ODM manufacturer and brand owner Koda but with a lower target price of $1.10, after the company announced its 2HFY2021 ended June results on August 26.

Koda' s 2HFY2021 results beat Ye' s expectations, with full-year revenue and earnings amounting to 116% and 107% of her forecasts. " The outperformance came from higher-than-expected manufacturing sales," she says in a August 30 research note. 

Koda' s 2HFY2021 revenue grew 65% y-o-y to US$43.1 million, while earnings surged more than 20 times to US$4.3 million, driven by higher export sales especially to North America, increased contributions from retail and distribution and improved gross margins.

Ye anticipates export sales momentum to the US to continue growing on the back of work-from-home arrangements amidst renewed virus-containment efforts. She notes that from January to June, US furniture imports increased 46.1% y-o-y to US$30.2 billion.

In addition, Vietnam' s furniture exports excluding wood increased 47.4% y-o-y to US$1.8 billion, though Ye notes that exports fell 16.8% on a m-o-m basis in July as Covid-19 restrictions disrupted production.

Both of Koda' s manufacturing plants - one in Malaysia and one in Vietnam - currently face Covid-19-related disruptions. In Malaysia, the government has allowed manufacturing firms to operate partially if at least 60% of their employees have been fully vaccinated and fully if 100% of their employees are fully vaccinated. She notes that Koda is working towards the progressive resumption of its Malaysian operations with higher full vaccination rates.

In Vietnam, factories are allowed to operate at 70% capacity if all workers have received their first dose of vaccination, and at full capacity if all workers are fully vaccinated. 

" Buffer stocks have minimised the financial impact from the disruptions. However, any longer-than-expected restrictions could affect the supply chain and inventory replenishment," Ye comments.

She also anticipates expansion plans in China for Koda' s retail brand Commune to be partly affected by a recent surge in Covid-19 cases in several provinces in China which has sparked lockdowns, mass testing and travel restrictions. " Chinese officials, however, believe that the situation is generally manageable," she remarks.

Given the disruptions, she has lowered her target price for Koda from $1.32 to $1.10 as she rolls over her 7-time ex-cash P/E to FY2022. " This is at the higher end of its historical five-year ex-cash P/E," she notes.

Ye has lowered her FY2022 earnings forecast by 29% to US$0.7million, following cuts to her gross margin assumptions from 32% to 29.5% to reflect the production disruptions at Koda' s plants.   

Nonetheless, she says catalysts are still expected from higher exports to US and an increase in production capacity. 

Shares in Koda closed 0.5 cents or 0.62% higher at 81 cents on August 30.

 

Koda acquires freehold property in Tagore Lane for $11.2 mil

Furniture ODM manufacturer and brand owner Koda is proposing to acquire a property located at 18 Tagore Lane, Singapore for a consideration of $11.2 million. 

The property is a freehold industrial building that has a total land area of 604.1 sqm and a gross floor area of 1,185.5 sqm. 

This property, following the acquisition, will house the group' s operations - corporate office, furniture showroom, products design and development, workshops, stores and warehousing facilities - that are currently at 28 Defu Lane, Defu Industrial Park.

The group' s lease at the leasehold building at Defu Lane will expire on Nov 30, 2023 and there is no certainty that the lease will be renewed after the expiry days. Considering the risk of non-renewal and time required to relocate, the group decided that it was operationally practical to terminate its lease before the expiry date and find a suitable property to replace it. 

Shares in Koda closed at 78 cents on Aug 24. 

 

With all these good news, very good dividend should be expected right

Joelton      ( Date: 02-Aug-2021 09:08) Posted: Sofa, so good for Koda as the furniture maker looks to grow further It plans to boost production capacity in Vietnam to fulfil demand, and Commune is targeting to have 100 stores in China by 2022.   WITH demand for home furnishings rising amid the pandemic, home-grown furniture maker Koda has plans to add new stores and widen its reach.   Founded by Koh Teng Kwee, Koda started out in 1972 as a workshop producing wooden cabinets but has since pivoted to designing and manufacturing its own furniture. It exports furniture to about 30 countries across North America, the Asia-Pacific and Europe.   In addition, it operates stores under its retail subsidiary Commune, which was launched in 2011. Koda has 85 stores under its Commune and ALT.O brands in markets such as China, Singapore, Malaysia and Hong Kong, of which the bulk are Commune outlets. Nine are owned while the rest are on distributorship.   While the pandemic has hit many industries hard over the past year, it has brought brisk business to both Koda' s manufacturing and retail arms. Demand has been fuelled by the shift to working from home (WFH), as people look to make their living environment more comfortable. With orders streaming in, Koda has plans to boost its production capacity in Vietnam to fulfil demand.   Koda chief executive James Koh - who is part of the founding Koh family - sees " great potential" for Koda' s retail business, given its capex-light nature, while its efforts to diversify through a sofa line will be another promising area for growth. Retail arm Commune is headed up by Joshua Koh, who is part of the third generation of the Koh family.   On the other hand, growing its manufacturing is a bit more challenging due to the facilities required. " For retail, we can always buy from others, (including) friendly competitors," said Mr James Koh.   With recurring waves of Covid-19 cases threatening global supply chains, Commune has already started sourcing for furniture from China - which is less affected by the pandemic at this point - to fortify its supply so that it will have sufficient stock as it deepens its presence in existing markets and enters new ones.   " China has the greatest potential for our brand because of the large population and the growing middle class segment," said Mr Joshua Koh, adding that its reputation as a Singapore-based brand also serves it well. " The demand for imported products in China has been a key factor."   In China, Commune is targeting to have 100 stores by 2022, which would represent a 33 per cent jump from the 75 outlets presently under its banner. It is well on track, with more than 10 slated to open their doors in August alone. In addition, it is gunning to launch a flagship store in Shanghai by year-end.   However, the pandemic did scupper plans to venture into Indonesia and India. In fact, it was forced to delay plans to launch a store in India only in June.   Instead, Koda has turned its attention to stepping up sales in Europe, starting with Scandanavia, where it has teamed up with a European distributor. Its management expects robust demand for furniture out of Europe from customers willing to spend on home furnishings.   While Koda is confident that demand stemming from WFH isn' t going to be just a flash in the pan, it is working on maintaining revenues by diversifying its product line, starting with the manufacturing of sofas. Typically, sofas account for half of sales in a furniture store as wear-and-tear results in replacement demand.   There are also plans to grow its ALT.O brand " quite aggressively," Mr Joshua Koh added.   Commune is pitched at young, new home-owners who seek well-designed furniture at an affordable price. But as its customer base matures, their needs have evolved. Through ALT.O, Commune seeks to meet those needs, while also targeting a new set of customers who might normally opt for expensive European brands. Koda' s retail arm can match the design quality of such brands, but at a fraction of the cost thanks to its manufacturing roots in Asia, he said.   " In Singapore, we still see good potential," said Mr Joshua Koh. " Last year, there was double-digit growth for retail. This year, we' re also looking at double-digit growth in Singapore and China."   Commune also recently signed a partnership with American furniture brand Steelcase, which supplies office chairs to companies. As firms reimagine the role of the future office, Mr Joshua Koh expects that will drive demand for furnishings such as sofas, to create comfortable communal spaces.   But even as the WFH culture has customers digging deep into their wallets, the pandemic has brought other challenges to the fore for Koda, such as the spike in raw material costs, soaring freight rates and heightened Covid-19 restrictions.   For instance, it has had to warn its customers that the disruption to its manufacturing operations in Malaysia and Vietnam could result in delays. The lockdown in Malaysia means that its factory in Johor has had to shutter its doors since the movement control order (MCO) first kicked in over two months ago, Mr James Koh told The Business Times.   Similarly, a surge in the number of cases has also resulted in tightened restrictions in Vietnam, where it manufactures about 80 per cent of its output. But under a " bubble" scheme, which allows employees to live and work at the factory premises, Koda has applied for a little over 25 per cent of its employees to continue working.   Meanwhile, it plans to continue to invest in technology to digitalise its operations. As Singapore' s circuit breaker last year kept buyers homebound, its omni-channel platform and e-commerce presence helped keep cash registers ringing - at least virtually. In addition, Commune makes use of virtual and augmented reality solutions, such as a virtual showroom on its website, to help improve the shopping experience for customers.   Next on the agenda is a warehouse management system that will use QR codes to help operations run more efficiently.   " When our warehouse team goes in, they scan the QR code and everything is tied to the system. Instead of running around the warehouse, they have information on where the product is, how much to take and where to bring it to," Mr Joshua Koh said, adding that it saves employees from having to carry out manual updates.   The system will eventually be linked to its manufacturing operations as well, allowing for stock to be easily located on the production floor without employees having to leave the office.   For the six months ended Dec 31, 2020 (H1FY21), Koda' s net profit rose nearly 16 per cent year on year to US$4.78 million while revenue was up over 15 per cent to US$39.55 million.

 

 

Koda gets a ' hold' from SAC Capital as furniture demand increases

SAC Capital is initiating a " hold" recommendation on furniture ODM manufacturer and brand owner Koda with a target price of $1.002.

Established in 1972, Koda is an ODM manufacturer for well-known retail brands. ODM manufacturing accounts for 82% of its revenue. The manufactured products are sold to North America (67.4%), Europe (10.4%) and Asia (22.2%). Koda also owns the brand Commune for mid- to high-end market. The products are sold in 85 stores across Asia Pacific, with 88% of these in China.

With increasing work-from-home measures worldwide and reduced mobility, the demand for home renovations and improvements have risen significantly. Fiscal stimulus handouts have raised household savings rate and propensity to spend on goods. In the US, sales at furniture stores surged 49.5% in the first five months of 2021. Year-to-April 2021, Singapore' s furniture and household equipment sales rose 22.7% y-o-y.

With that, lead analyst Lim Shu Rong sees several earnings growth catalysts in the next few years, namely higher home sales, fuelled by low interest rates and ample liquidity increased production capacity with a new factory in Vietnam to about 30% in 2022 to cater to higher demand new sofa products that are easy to produce. The company plans to ramp up sofa production as demand increases and greater penetration of Commune. It plans to grow the number of Commune stores to 100 by 2022, through rolling out more franchise stores in China. A larger store network will allow it to enjoy operating leverage.

However, some near-term concerns include tightened mobility restrictions in Malaysia and Vietnam to cope with a resurgence of Covid-19 cases and increased adoption of e-commerce sales for furniture.

" Unlike in the past, furniture brands now face global competition. Those with weak online presence will face greater pressure," adds Lim.

As at 12.55pm, shares in Koda are trading at 84 cents or 9.1 FY2021 earnings with a dividend yield of 1.7%.

 

 

Looks good.
Still have 42c upside to Target Price.

SmallSmall      ( Date: 23-Jul-2021 11:33) Posted: PHILLIP Securities has initiated coverage on furniture maker Koda with a " buy" call, and is expecting the company' s net profit to almost double in FY2021 as people spend more time in their homes and buy more furniture to fill it. In a report released on Friday, analyst Vivian Ye set a target price of S$1.32 for Koda. That represents potential upside of nearly 50 per cent. As at 10.36am, shares of Koda were trading at 88.5 Singapore cents, up 10.6 per cent or 8.5 cents. The target is seven times what Ms Ye expects Koda to report in earnings for the current financial year, on an ex-cash basis. Stripping out Koda' s net cash holdings of about USS$14 million, Koda currently trades at roughly three times' earnings. In her report, Ms Ye noted that US furniture imports have increased 44 per cent to US$24.9 billion for the year to May 2021. The import value is 18 per cent higher than pre-Covid levels.The United States is one of the markets that Koda exports its furniture to.

 

PHILLIP Securities has initiated coverage on furniture maker Koda with a " buy" call, and is expecting the company' s net profit to almost double in FY2021 as people spend more time in their homes and buy more furniture to fill it.

In a report released on Friday, analyst Vivian Ye set a target price of S$1.32 for Koda. That represents potential upside of nearly 50 per cent. As at 10.36am, shares of Koda were trading at 88.5 Singapore cents, up 10.6 per cent or 8.5 cents.

The target is seven times what Ms Ye expects Koda to report in earnings for the current financial year, on an ex-cash basis. Stripping out Koda' s net cash holdings of about USS$14 million, Koda currently trades at roughly three times' earnings.

In her report, Ms Ye noted that US furniture imports have increased 44 per cent to US$24.9 billion for the year to May 2021. The import value is 18 per cent higher than pre-Covid levels.The United States is one of the markets that Koda exports its furniture to.

 

Koda to temporarily suspend operations in Vietnam

Koda announced that on July 11, the Provincial People' s Committee of Long An Province, Vietnam has issued a directive requiring companies operating in Long An Province to temporarily suspend their operations due to high Covid-19 infections.

The directive is effective of July 13 and is s to facilitate necessary arrangements to be made by these companies for their workers to work while limiting contagion risks. These companies shall submit an application to the local authorities for approval to resume their operations.

In compliance with the directive, the group' s factories in Long An Province have temporarily been close. The group is in the midst of applying to the local authorities in order to continue part of the Vietnam operations while working towards resuming full operations gradually.

The Vietnam Operations have since set up procedures to conduct Polymerase Chain Reaction (PCR) test for its staff and workers, as part of its proposal to local authorities for resuming operations. The group has informed its export customers on the temporary closure of the Vietnam operations and will make arrangement with its supply chain partners.

Koda says that while the temporary closure of its Vietnam operations will result in delay of production of certain orders, part of these orders may be fulfilled by scheduled shipments from the readily available inventories.

Meanwhile, the group will continue to closely monitor the situation and follow up on the status of its application. It is currently also assessing its financial impacts in the event that approval for its application to resume operations is delayed.

Shares in Koda closed at 82 cents on July 13.

 

 

This counter is way quiet    I think need to wait long long than can see it active again

 

Is today Koda' s result release? Wonder how Koda perform during this pandemic 

 

Back to pre split price
The company should be doing badly this time round due to covid

Before covid, still doing very well

 

 

Unstoppable train

 

Any one want to discuss wther the share price will go down (like normal) or go up (like UMS) after bonus issue?