Revisiting $YOCB / 5159 (YOONG ONN CORPORATION BERHAD) after a year since I covered them:

Updates on their Q2 FY2024:

- Revenue: 66.4mil, -7.7% vs Q2FY2023 due to lower sales from consignment and retail were attributed by weaker retail market sentiment.
- PAT: 9.1mil, -7.1% vs Q2FY2023 due to lower sales and higher operating expenses.
- Versus Q1 FY2024, both revenue and PAT increased by 14.6% and 51.7% respectively, attributed to year-end festive season and promotional sales.
- As of now, YOCB operates 26 Home’s Harmony retail outlets, 4 Niki Cains Home fashion concept stores, and one Home’s Outlet; each targeting different segments.
- Plans to open 6-7 new Home’s Harmony outlets in 2024: location looking at the Klang Valley, and maybe Johor and Penang.
- Looking at opening stores in areas with growing communities due to township or mixed-use development projects, and neighbourhood malls in residential areas because they often offer lower rental costs.
- Fun trivia according to an interview/article: “On average, YOCB sells 1 million pillows every year, which means that’s about one in 30 Malaysians is using its pillows.”


Interesting developments to take note:
Expansion to Singapore by acquiring 60% stake in Singapore-based TC Homeplus for RM38mil (satisfied entirely via cash)

- TC Homeplus is a prominent player in house brand manufacturing (curtains, pillow cases, bed sheets and bed spreads) and mainly serves customer segments like hotels, cruise liners, government units and major department stores in Singapore. For the FYE2022, TC Homeplus reported a net profit of RM7.96 mil with revenue of RM55.42mil, so approx. 14% net margin.
- YOCB bought TC Homeplus 60% stake for around 8X PE
- Acquisition completed on 12 January 2024; so should reflect in next QR.


Other factors to consider:
- Increasing population and increasing homeowner base
- Retail market sentiment
- Rising urbanisation and income levels are expected to fuel preference for premium home linens and homewares.
- Property market indirectly correlated to demand for pillows and bedding products
- Any changes in distribution channels


Refer back to the previous thread discussions on them here:
https://cutt.ly/Lw0V6n7D
https://cutt.ly/5w0V6mTT
https://cutt.ly/jw0V6m8e