• Koda Ltd was founded in 1972 as a sole proprietorship. Today, Koda (SGX:BJZ) is listed on the Main Board of the SGX.
• Management guides that Koda has seen higher demand for its products due to work-from-home arrangements to combat the spread of COVID-19.
• Koda has been in a net cash position over the past five years and trades at a 1.4% discount to its end-Dec 20 book value per share of S$0.735.

Koda Ltd - Established in 1972

• Koda Ltd was founded in 1972 as a sole proprietorship operating out of a small workshop producing wooden cabinets. The group has since progressed to having factories in Malaysia and Vietnam and was listed on the SGX in 2002.
• Today, Koda has an extensive range of offerings, including solid-wood dining, living room and bedroom furniture. It also has its own retail brand, Commune, which targets high-end customers with trendy designs and contemporary lifestyle furniture and accessories.
• As of end-Jun 2020, Koda had 75 Commune outlets in Singapore, Malaysia, the Philippines, Hong Kong, China and Australia.

Commune - Singapore Homegrown Furniture Design and Lifestyle Company

• Established in 2011, Commune is a homegrown furniture design and lifestyle company that originated in Singapore. It has its own in-house design team and the products are manufactured at its own factories in Malaysia and Vietnam.
• According to its website disclosure, Commune uses eco-conscious timber imported from different lighting conditions.

Koda's 1HFY21 Net Profit Exceeded That of FY6/20

• Koda’s 1HFY21 (Jul 2020 to Dec 2020) net profit of US$4.8m exceeded FY20’s net profit of US$4.3m. Management attributed the 1HFY21 performance to higher demand for the resurgence of COVID-19 infections and the US-China trade tensions.
• Koda believes it can remain profitable in FY21F given the improving production efficiency and cost-cutting measures, as per FY20 results commentary.

Trading at a 1.4% Discount to 1HFY21 Book Value Per Share

• Koda Ltd share price is trading at a 1.4% discount to its book value per share of S$0.735 as at end-Dec 20. Koda has also been in a net cash position over the past five years. Historical FY20 P/E is 10.3x while historical dividend yield is 1.72%.

Source: CGS-CIMB Research - 21 Jun 2021