Value Stock:Tomei Consolidated

April 23, 2008

Tomei Consolidated Berhad, an investment holding company, engages in the design, manufacture, and retail of jewelry in Malaysia. It also involves in the refining of gold and jewelry; rental of investment properties; and trading of diamonds and jewelry. As of December 31, 2006, the company operated 43 retail outlets and 1 retail kiosk under the brand names Tomei, T.H. Jewelry, and My Diamond. Tomei Consolidated was founded in 1968 and is based in Kuala Lumpur, Malaysia.


Tomei Consolidated Bhd acquired the entire interest in diamond distributor Lumiere 2006 Ltd (LL06) for US$885,853 (RM3.1 million) cash (using internally generated funds) as part of its plan to acquire the Le Lumiere brand and gain entry into Hong Kong as well as promote the brand in new markets. The acquisition would also enable it to cross-market its own products into Lumiere’s existing marketing network. Hong Kong-based Lumiere distributes ‘Heart and Arrow’ diamonds under the Le Lumiere brand.

In Oct 2007, Tomei Consolidated Bhd (TCB) has granted trademark rights to China-based Monavi Jewellery Ltd for six months, subject to renewal, to tap into the Chinese market and position itself as a renowned jewellery retailer in China. The company hoped to make inroads in China with its “Tomei” Brand with the local expertise. Tomei said it would have the option to acquire up to 51% of the operation where the IP right was being used.

Recently, Tomei Consolidated Bhd entered into a joint venture (JV) agreement with Terengganu Incorporated Sdn Bhd to manufacture and market gold gift premium products and souvenirs via a JV company, Tomei TI Sdn Bhd under the brand name Terengganu Art.

Tomei currently trades at RM 0.74, P/E around 7, Dividend 6%, with Book Value of RM 0.80. In April 2008, its major shareholder Datuk Ng Teck Fong has been accumulating Tomei shares.