Equity research and financial modeling of Singer Bangladesh limited for 2019. Singer Bangladesh is a Publicly listed company in the Dhaka stock exchange (DSEX). One of the Marker leader in Consumer Appliance with 16% market share.

1. HOL
D
RECOMENDATI
ON
CLOSING PRICE
Tk 213.4
TARGET
PRICE
Tk 215.46
0.96
EXPECETED
RETURN
31st December2019
18th August 2019
SINGERBD

2. CURRENT BEARISH TREND IN THE CAPITAL
MAREKT
POST WORLD CUP SALES LAG
NO DIVINDEND GAIN WITHIN 31ST
DECEMBER2019
DIVINDEND GAIN IN THE EARLY 2020
FAVORABLE MACROECONOMICS TRENDS
HIGHER CAPITAL GAIN IF HELD FOR LONG-
TERM

3. CURRENT BEARISH TREND IN THE CAPITAL MAREKT

4. MACRO ECONOMIC
ANALYSIS

5. GDP
GROWTH
STEAD
Y

6. INCREASED PER CAPITA
INCOME
POPULATION GROWTH
30-40MILLION PEOPLE WILL RISE
FROM POVERTY TO MIDDLE CLASS
BY 2025
CONSUMER CLASS IS
SWELLING AND
DISPERSING

7. Growth of Middle and Affluent consumer class in
Bangldesh

8. INDUSTRY
ANALYSIS

10. Category Million USD
TV 414.22
Refrigerator 549.11
Air Conditioner 164.57
Home Appliances 251.41
TOTAL MARKET SALES IN DIFFERENT
CATEGORIES

11. COMPANY SHARE
Walton 54%
Singer 14%
LG 4%
Jamuna 4%
Minister/MyOne 4%
Others 20%
REFRIGERATOR MARKET SHARE

12. COMPANY SHARE
General 35%
Gree 20%
Singer 14%
Others 31%
AIR CONDITIONS MARKET SHARE

13. Company Share
Walton 27%
Singer 7%
Minister 4%
LG 3%
Sony Rangs 3%
Vision 2%
Nova 2%
Transcom 2%
Others 50%
MARKET SHARE OF
TV SALES

14. YEAR TV REFRIGERATOR
AIR
CONDITIONER
HOME
APPLIANCES
2018 414 549 165 251
2019 478 614 215 288
2020 543 680 271 328
2021 636 779 360 379
2022 699 878 392 425
CONSUMER ELECTRONIC MARKET
GROWTH

15. COMPANY ANALYSIS

16. 15%
IN CONSUMER DURABLES
INDUSTRY
STARTED ITS JOURNEY IN
1905
LARGE NUMBER OF SALES
CENTERS
WIDE VARIETY OF PRODUCT
RANGE

17. 374 SALES
CENTERS
425 DEALERS IN 64
DISTRICTS
STRONG DISTRIBUTION
NETWORK

18. SUBSIDIARIES AND STOCKHOLDERS
INTERNATIONAL APPLIANCE
LIMITED (IAI)
• MAINLY A
MANUFACTURING
PLANT FOR
REFRIGERATOR
• PRODUCTION UNIT
CAPACITY 2500000
• SINGER OWNS 74% OF
THE IAI

19. SEASONAL BUSINESS PERIODS
•EID UL FITR
•EID UL AZHA
•PUJAS
•FIFA WORLD CUP
•CRICKET WORLD
CUP
•TV SALES HIGH
•FRIDGE SALES HIGH
•TV/OTHERS SALES
HIGH
•TV SALES HIGH
•TV SALES HIGH

20. PRE AND POST WORLD CUP
EFFECT

21. PRODUCT PORTFOLIOS

22. HOME APPLIANCES
• Contributed 56.94% of the total revenue
• 95% of home appliances sold by Singer
Bangladesh is refrigerator
• Singer Bangladesh invested 73.85% in (IAI)
• (IAI) production capacity 250000 units
• (IAI) manufactures SINGERBD’s
Refrigerators
• Refrigerator unit has achieved sales growth
of 42%

23. REFRIGERAT
OR
• YEARLY DEMAND OF 1.1 MILLION UNITS
OF REFRIGERATOR
• LOCAL MANUFACTURERS PASS THE
CAPACITY TO PRODUCE 2.3 MILLION
UNITS
• REFRIGERATOR UNIT HAS ACHIEVED
SALES GROWTH OF 42%
• DEPENDS ON SEASONAL SALES
MOSTLY

24. AIR
CONDITIONERS
• SALES INCREASE DUE TO RISE OF
TEMPARATURE
• 12.07% OF THE TOTAL SALES
• AVERAGE SALES GROWTH RATE 29%
• 36% SALES GROWTH IN THE FIRST 6
MONTHS
• IN THE NEXT QUARTER THE SALES OF
AIR CONDITIONER WILL BE MODERATE

25. Television
• TELEVISION CONTRIBUTES 21.04 OF
TOTAL REVENUE
• AVERAGE SALES GROWTH RATE 29%
• MOST SALES ARE SEASONAL

26. KEY GROWTH DRIVER OF SINGERBD

27. GROWTH OF AVERAGE INCOME LEVEL AND
ROBUST ECONOMIC
GROWTH
GROWTH IN LOCAL
CONSUMER MARKET

28. STRONG BRAND
REPUTATION
EXTENSIVE PRODUCT
PORTFOLIO
EXTENSIVE
DISTRIBUTION
MULTIPLE SERVICE
OFFERING

29. INVESTMENT INSIGHTS

30. POSITIVE ASPECTS OF
INVESTMENT
• Major revenue earning segments have experienced major sales
growth in last five years.
• Record growth in refrigerators and air conditioners due to rising
temperature increase in our country
• Company launches good number of diversified products
• Increased equity participation with International Appliance Ltd
• ARCELIK is going to invest $75m in SINGERBD

31. INVESTMENT
CONCERNS
• COMPANYIS EXPOSEDTO FOREIGN EXCHANGE RISK AS HUGE PORTIONOF RAW
MATERIALSARE IMPORTED(93.59%)
• THE COMPANYIS HIGHLY EXPOSED TO SEASONALITY
• HIGHLY AFFECTEDBY POLITICAL INSTABILITY
• INTENSE COMPETITIONFROM LARGE NUMBEROF LOCAL MANUFACTURERSAS WELL AS
CHINESE PRODUCTS
• 33.85% CALL OPTION AND SHARE IF INTERNATIONAL APPLIANCE LTD TO SUNMAN

32. SHAREHOLDING PATTERN

33. FINANCIAL
PERFORMANCES

34. LIQUIDITYPOSITION OPERATINGEFFICIENCY
LEVERAGE RATIO ROAvs ROE

35. PROFITABILI
TY
1. ALL PROFITABILITY
MEASURES ARE INCRESING
AT STABLE GROWTH RATE
2. POLITICAL INSTABILITY MAY
SLOW THIS GROWTH DOWN
3. WORLD CUP YEARS SHOW A
BOOST IN PROFITABILITY

36. ASSUMPTIO
NS
ASSUMPTIONS
REVENUE
COGS
OPERATING
EXPENSE
FINANCE
EXPENSE
• REVENUE 10% YoY
• COST OF GOODS SOLD 70%
OF SALES
• OPERATING EXPENSE 18% OF
TOTAL SALES
• FINANCE EXPENSE 10% YoY
• PROVISION FOR WPPF 5% YoY

37. FREE CASH FLOW TO FARM
• FREE CASH FLOW HAS STEADY
GROWTH
• CAPITAL EXPENDITURE MAY
INCREASE AS SINGER TRIES TO
SATISFY MORE DEMANDS EACH
YEAR
• CAPITAL EXPENDITURE 5% YoY
• EFFECTIVE TAX RATE- 28%
• TERMINAL GROWTH RATE 5%

38. SUPPORT AND
RESISTANCE LEVEL

39. HOL
D
RECOMENDATI
ON
CLOSING PRICE
Tk 213.4
TARGET
PRICE
Tk 215.46
0.96
EXPECETED
RETURN
31st December2019
18th August 2019
SINGERBD

40. THANK YOU

41. APPENDIX
• https://www.thedailystar.net/business/singer-opens-refrigerator-
plant-savar-1259956
INTERANTIONAL
APPLIANCE LIKMITED
ARCELIK • https://www.prnewswire.com/news-releases/arcelik-to-acquire-
singer-bangladesh-operations-for-75-million-300817053.html
Consumer class
report BCG
• https://www.bcg.com/publications/2015/bangladesh-the-surging-
consumer-market-nobody-saw-coming.aspx
AMAR STOCK https://www.amarstock.com/stock/SINGERBD
MARKET SHARE
INFO
https://datasets.databd.co/datasets/96d0c660-be35-11e8-b0d0-
5b352b9326f9/resource-3bf68400-be39-11e8-ad21-
a1004006dfb6