Cheetah’s shares surge on online apparel store

By S BIRRUNTHA / Pic source

CHEETAH Holdings Bhd’s share price has surged to historic high ahead of the company’s move onto the e-commerce space in partnership with XOX Bhd and Lambo Group Bhd next month.

Cheetah’s share price hit a high of RM2.95 last Friday from 54 sen at the start of the year, adding over RM276 million to its market value, helped by Citigroup Nominees (Asing) Sdn Bhd on behalf of an undisclosed client.

Cheetah was among the top five gainers on the exchange yesterday, with its share price gaining 27 sen or 10.34% to RM2.88 at close, translating to a market capitalisation of RM367.55 million.

Cheetah’s partnership with XOX and Lambo, announced on March 12, aims to launch a newly designed, full-suited online apparel store, Cheetah Online Store, slated to be launched by April 2021.

The venture will see Cheetah work with mobile telecommunications operator XOX to revamp its apparel brands which will focus on online business and the youth market.

The collaboration was driven by the success of XOX’s Black Market place which has recorded triple-digit revenue growth on a monthly basis since its launch in January 2021.

Cheetah is hoping to emulate other apparel brands by grabbing a piece of the online apparel market share.

“This concerted effort represents a turnkey solution to provide all three companies with an immediate boost to revenue, product and presence. Additional products will lift our average revenue per user significantly, as customers spend more using digital means. Our e-wallet along with our dealer network will be instrumental in escalating this project,” the statement read.

Under the deal, Lambo will lend its machine learning model, last-mile delivery and explore collectively a bulk breaking, inventory management and e-fulfilment silo operation to cater for what would be an anchor client.

The flow-on effect of the new platform is expected to see Cheetah having immediate access to over two million XOX online customers.

XOX’s shares ended flat at 6.5 sen yesterday, giving it a market capitalisation of RM237.53 million. Lambo’s shares ended half a sen or 25% lower at 2.5 sen, giving it a market capitalisation of RM103.91 million.

Cheetah, in its second-quarter ended Dec 31, 2020, recorded a 92% year-on-year net profit of RM2.52 million from RM1.31 million a year ago, supported by its cost reduction measures. Its revenue for the quarter, however, declined by 36.6% to RM24.24 million from RM38.23 million.