Big growth for small appliances

  • Amongst the leading small appliance players in key global markets, specialising in cooking & cleaning utensils that register sound consumer demand
  • Synergies from multi-brand expansion in various markets and further product-mix upgrade should support growth and margins. We project 12% sales CAGR for FY21-23, c.30% ROE by FY23, relatively higher than most home appliance players
  • Near-term re-rating catalysts include US import tariff cut for small appliances. Initiate coverage with a BUY (TP: HK$11.86)