“Taka Jewellery Holdings Limited: Annual Report 2024 and Share Buyback Mandate

Key Facts and Summary of the Report:

1. Company Overview:

   • Taka Jewellery Holdings Limited is a jeweller with a 25-year track record in designing, manufacturing, and selling jewellery on retail and wholesale bases. It also operates a pawnbroking and moneylending business. The company has 18 retail outlets in Singapore and participates in international jewellery exhibitions.

2. Financial Performance (FY2024):

   • Revenue: The company reported a revenue of S$146.8 million, up slightly from S$145.9 million in FY2023, largely due to an increase in the retail business segment.
   • Net Profit: Net profit rose by 16% to S$10.3 million from S$9.0 million in the prior financial year.
   • Gross Profit: The gross profit increased marginally to S$42.7 million, with a gross profit margin of 29.1%.
   • Balance Sheet: As of 30 June 2024, net assets increased to S$129.8 million, while cash and bank balances stood at S$12.7 million.

3. Dividend Information:

   • The Board of Directors has proposed a final dividend of 0.179 Singapore cents per share, subject to approval at the Annual General Meeting (AGM).

4. Special Activities for Profitability:

   • Retail Expansion: Two new stores were opened at Lucky Plaza and Northpoint City. The company plans to open two additional stores by the end of December 2024.
   • Wholesale Business: Continued participation in international jewellery exhibitions, including events in Hong Kong and Las Vegas, to boost revenue and brand visibility.
   • Pawnbroking Expansion: Plans to expand pawnshop outlets and financial services to cater to the needs of both B2C and B2B segments.

5. Share Buyback Mandate:

   • The company is proposing a renewal of the share buyback mandate, allowing the purchase of up to 10% of the issued shares during the specified period.

6. Investor Recommendations:

   • For Current Shareholders: Given the company’s stable financial performance, proposed dividend payout, and plans for expansion in retail and financial services, investors holding the stock may consider retaining their shares.
   • For Potential Investors: The company appears to be in a steady growth phase, with a focus on expanding its retail footprint and maintaining strong profitability. Potential investors may consider buying into the stock, subject to their risk tolerance and investment strategy.

   Disclaimer: This recommendation is based solely on the information provided in the annual report. Investors should conduct their own research and consult with financial advisors before making investment decisions.

Report Date and Financial Year:

• The report is for the financial year from 1 July 2023 to 30 June 2024. The AGM is scheduled for 22 October 2024.

Points of Interest for Investors:

• The steady increase in retail revenue and gross profit margin signals the company’s resilience despite economic challenges.
• Expansion plans, including the addition of new retail outlets, indicate a proactive strategy for long-term growth.
• The proposed renewal of the share buyback mandate provides the company with a mechanism to use surplus cash and potentially enhance return on equity.

Conclusion:

The company demonstrates a robust performance with growth in revenue, net profit, and expansion strategies. Its proposed dividend and share buyback mandate signal confidence in its financial health. Investors may want to watch the company’s retail and financial services expansion efforts in the coming year.