Recently, a newspaper reported about men and women being fascinated with metal accessories. It showed that more people purchase these accessories to showcase their very own style and are not afraid to flaunt them. The growing thirst for metal accessories has got Joyas International Holdings (Joyas) smiling. Listed on 13 Mar-08 at $0.29 apiece, Joyas is principally engaged in the design, packaging and sale of premium metal gift products as well as jewellery products.

INNOVATIVE AND LIMITED

Based on Joyas’ net profit after tax of HK$22.1m for FY2006, Joyas is priced at a PE ratio of 5.7 times, based on a pre-invitation share capital of 84.7m shares. Joyas has an established track record for creating new, innovative trend-setting designs and products. Its product design team produces an average of approximately 30 new designs per month, with approximately 20 new designs put into production every month. The jewellery products (not exceeding 12 pieces for each design) are sold to jewellery agents and retailers overseas and in Hong Kong. Joyas is also able to provide their customers with comprehensive solutions according to their product requirements, including animated designs, production of prototypes, engineering specifications, alternative designs and price options within 24 hours. To date, they have launched more than 3,600 designs for their metal gift products, with proprietary copyrights over these designs.

INTERNATIONALLY ESTABLISHED CUSTOMERS

Joyas designs premium metal gift products for international, established brands and designer labels like Folli Follie, Lamborghini, Wedgwood, Aquascutum London and Marks & Spencer. Major customers are The Newbridge Cutlery Co and LC Designs Co (fka London Clock Co). Joyas is also engaged in the co-development of new product designs with these customers so as to enhance their product range to meet changing preferences of consumers. Other than the above customers, Joyas manufactures metal gift products for corporations as corporate gifts.

PROPRIETARY BRAND NAME

Focusing on the Asia Pacific market, Joyas sells its metal gift products under its own proprietary “Argent” brand name. This brand name, developed to tap into the Asia Pacific metal gift products market has its products sold through franchisees in Hong Kong and the PRC (namely Shanghai, Chengdu and Shenzhen). Positioning itself to reach customers in the growing PRC consumer market in the long term, Joyas understands the needs, changing attitudes and trends of the customers while building awareness and image. Joyas also foresees a growing demand by Europe luxury brands for metal accessories, such as accessories for handbags and cosmetic casings.

FUTURE PLANS

Joyas aims to raise net proceeds of up to $4.6m in order to finance expansion capacity comprising acquisition of machinery and equipment, advertising and promotional activities, and enhance design and development capabilities to improve income streams. Joyas also intends to incorporate environmentally friendly plating facilities in its new production facilities in Qingyuan, Guangdong, PRC to tighten the quality control process of its products. As consumer spending is expected to increase in PRC in the foreseeable future, Joyas has already tapped into the PRC metal gift products market through its proprietary brand “Argent”. Don’t be surprised if you see “Argent” metal gift products selling on our shores in the near future.