Excerpts from UOB KayHian report Choo Chiang Holdings (SGX: 42E)

• With a dominant position in the distribution of electrical products, Choo Chiang has benefitted from strong growth of demand for its products, with 2021 EPS growing 190% yoy.
• Choo Chiang to achieve EPS growth of 13% yoy for 2022, driven by increased sales of its own brand products and tie-ups with contractors for better order visibility. Also, divestment of its existing investment properties could unlock value.
• Initiate coverage with a BUY and target price of S$0.56, pegged to 12x 2022F mean PE.

Dominant position in distribution of electrical products with robust earnings growth Choo Chiang Holdings has established sturdy relationships with building contractors, renovation contractors and interior designers. Today, it has a 60% market share in Singapore, where it operates 10 retail branches and retails over 30 third party brands along with its own proprietary brands Choo Chiang Marketing (CCM) and CRM....