Malaysia : Voir in aggressive expansion mode

KUALA LUMPUR: Leading ladies' apparel market player Voir Holdings Bhd will invest up to RM10mil in the next 18 months to expand its businesses locally and overseas.

Managing director Ham Hon Kit said the company would further boost its name in Malaysia and penetrate new markets overseas.

“The company will be setting up three to five specialty stores and/or consignment counters in department stores internationally within the next nine months to a year, and 15 to 20 similar stores in Malaysia within the next one year,” he told reporters after the company's listing on Bursa Malaysia second board yesterday.

Voir had established its brand in Vietnam, Brunei, the Middle East and India, and would soon be making inroads into Thailand, Ham said.

The company will also be developing its largest concept store in Dubai by year's end or early 2008, which will have a floor space of 18,000 sq ft.

According to a market research report by Protege Associates, Voir commands 6.5% to 8% of the local ladies apparel market, making it the number one ladies apparel player in the country.

Ham said the market still had room for growth, and was confident that Voir would be able to increase its current market share.

According to the International Trade and Industry Ministry (Miti), the apparel industry's revenue hit RM3.26bil in 2006, with the ladies apparel segment contributing RM1.1bil.

Miti has forecast the latter figure to reach RM1.65bil by 2013.

“Looking at the health of the Malaysian economy, the many projects announced, coupled with the EPF dividend increase, they will provide more purchasing power to consumers,” Ham said.

On the company's listing, he said it would enhance its image locally and abroad, and give more confidence to customers.

TA Securities has valued the company at RM2.17, based on 8.5 times the financial year ending Dec 31, 2008 price/earnings ratio (PER), benchmarking it against the calendar year 2008 average PER of its industry peers.

According to the research house, the fair value translates to a potential upside of 13.6% from the initial public offering (IPO) price of RM1.91.

Voir made its debut yesterday at RM1.99 for an eight sen premium over its IPO price. It reached an intra-day high of RM2.13 before ending the day at RM1.89, down two sen.