# SHM - Shriro Holdings



## System (7 June 2015)

Shriro is a leading Kitchen Appliances and Consumer Products marketing and distribution group operating in Australia and New Zealand. The Group markets and distributes an extensive range of products under company-owned brands (including Omega, Robinhood, Everdure and Omega Altise), and third-party brands (such as Casio, Blanco and Pioneer) in Australia and New Zealand. 

Shriro employs approximately 265 FTE employees, including around 100 sales and marketing staff in Australia and New Zealand. Shriro also has an additional 8 team members based in China, focusing on product sourcing, quality control and procurement.

It is anticipated that SHM will list on the ASX during June 2015.

http://www.shriro.com.au


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## skc (17 March 2016)

Ves said:


> I also don't like companies that distribute brands that they don't own. You're basically building the business in a territory for the brand owner and giving them a free option to reap the benefits if it's successful long-term.  It's great while it lasts for the distributor if it's a good brand,  but look at say Oroton (ORL) for instance,  which was decimated when Ralph Lauren ripped up the agreement and took it back in-house.




Same here. It's cheap on most valuation measures but it's not really a business that has any sustainable competitive advantage to speak of. The only asset is really the distribution agreements. It does have some house brands but again, not exactly unique offerings. And in the era of eBay and grey imports... sole distribution of Casio G-shocks also feels neither here nor there. 

To me this is the kind of stock that you buy when it is cheap (may be now it is), but definitely a stock that you sell when it is no longer cheap (as opposed to holding for long term growth). Noting also that it has only reported for the first time since listing so it doesn't have the track record as a listed company yet. 



Ves said:


> edit:  also a few rumours floating around that the two major director / management shareholders may be willing to sell down their holdings  (limited to 25% as per "trading window update" announcement).




Not exactly a rumour as it was clearly stated that the directors are considering selling... and the share price crashed >20% just on that. Not exactly a liquid stock though so doesn't take much to move it a long way.


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## Ves (17 March 2016)

skc said:


> Not exactly a rumour as it was clearly stated that the directors are considering selling... and the share price crashed >20% just on that. Not exactly a liquid stock though so doesn't take much to move it a long way.



Thanks for clarifying!

I view this in a similar way as I do PAS Group (PGR).  I'm sure I wrote some thoughts on that at some point if anyone is interested.   Both have distribution agreements + house brands they own.


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## McLovin (17 March 2016)

I don't like these hodge podge sort of companies. If they just sold kitchen appliances then they might be a good way to play a construction boom, if they just sold Casio G Shock watches then they might be a way to play a consumer boom. But they do both, and, in my experience, they end up with one segment firing and the other lagging and vice-versa. 

And of course the comments about them being a distributor and having no real IP of their own are very valid, especially in the days of the internet. They're really just a logistics company.


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## skc (17 March 2016)

Ves said:


> Thanks for clarifying!
> 
> I view this in a similar way as I do PAS Group (PGR).  I'm sure I wrote some thoughts on that at some point if anyone is interested.   Both have distribution agreements + house brands they own.




MCP is another one I have in mind in a similar vein. Below is the 20 year share price chart... hence my comment about SHM being a buy low / sell high type stock as opposed to a true long term holding.







McLovin said:


> I don't like these hodge podge sort of companies. If they just sold kitchen appliances then they might be a good way to play a construction boom, if they just sold Casio G Shock watches then they might be a way to play a consumer boom. But they do both, and, in my experience, they end up with one segment firing and the other lagging and vice-versa.




I think they make decent private / family-owned companies.... at least you'd have control.


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## Gringotts Bank (30 March 2017)

Large order has attracted the price towards it.  Will it get eaten before close?  Nice chart.


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## The Triangle (30 August 2022)

If I'm correct this would have paid out 64 cents of dividends from 2015/16 when the share price was $1  SP now is 83 cents.   Not a terrible investment if you ask me.    Currently paying a 4 cps fully franked dividend for EOFY and paid 6 cps at the half.  I don't think that's going to stay the same given in the investor presentation the statement below:

_FY23 EBITDA is expected to be down by 25% on FY22. This is caused by salary increases, supply chain cost increases, the Blanco brand exit and the projected subdued consumer spending._

Still, it looks very interesting considering there's zero debt.


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