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Sunday, 20 September 2015

TLV Holdings Limited

This is for records and information only

This post is more for records only as there was no public tranche and i missed the writing due to the election "fever". It will be kept brief and simple.

TLV Holdings Limited ("TLV" or the "Company") placed out 76.459m Placement Shares at 22 cents each.

It is interesting to note that this is the 3rd major jewelery shop to be listed here....after Aspial and SK Group. The Company owns the Taka and Lovis Diamonds brand. 

Seems like even a small Singapore can have 3 brands covering it and all competing in the same segments and owns pawn shops! Since the business is easy to understand, i will not spend too much time on it.

Actually the local retail market is not exciting for TLV at all. What is more profitable is the exhibition business, which generated 50.4% of the revenue but help contribute to 70.7% of the profits in FY2015.

The Company seemed to generate improving revenue and net profit for FY2015. The sales and profit seemed to be quite close to the SK Group.

Based on EPS of 1.9c, the listing PER is around 11.6x. The NAV of 16.9 cents also provided good support against the IPO price of 22 cents. Based on the IPO price, the market cap is around $124.4m. 

TLV has a very strong exhibition business and that seemed to stand out in contrast with Soo Kee that is purely into retail and provide a "diversification angle" to pure Singapore exposure.

Contrasting debut

Soo Kee was priced at 15.8x while TLV listed at 11.6x. Soo Kee has since tanked to 21 cents (down 30%) whereas TLV is now trading at 31 cents (up 40%)! What are great contrast and they seemed to have "swop" places! 

The TLV placees must be smiling to the banks! ^_^

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