Last Updated: 5 May 2023
Key Info
Founded: 1991 | SGX Listing: 2005 (Mainboard) | SGX: BXE | FY End: 31 December
Description: A Japanese-managed precision components specialist serving the global market focusing on the production and supply of niche precision components for mobile communication equipment, gamebox entertainment equipment, consumer and information technology equipment, office equipment and electrical appliances. The Group is headquartered in Hong Kong and has operations in Japan, China and the Philippines. The Company has been identifying new businesses to invest in with the potential for growth and entered as part of its diversification strategy and has made forays into the Life Sciences sector since 2016. The Company’s aim for its Life Sciences business is to identify research-driven yet commercializable projects that can have a positive impact on the quality of human life.
Global Headquarters: Hong Kong
Production Bases: Japan; China; Philippines
Commercial Operations: Contract Manufacturer for Global Brands
R&D: Unknown
Total Employees: Unknown (Worldwide)
Website: https://cdw-holding.com.hk/
LCD Backlight Unit Segment (LCD BLU)
Product Applications: LCD Backlight Unit panels for smartphones, handsets, personal notebook computers, automotive digital instrument panels
Business Outlook:
- The Group’s high-end in-vehicle display systems and ultra-thin computer display systems recorded good sales in FY2022, benefiting from the shift to touch-screens for car systems and growing popularity of in-vehicle entertainment systems, along with the pivot to a Work-From-Home mode in response to the COVID-19 epidemic.
- Going forward, the Group believes orders for larger-size LCD BLUs for advanced automotive digital instrument panels will form an important part of its sales.
- However, sales of high-end ultra-thin notebook computer BLUs may remain soft as the COVID-19 epidemic situation improves and return-to-office activities continue around the world.
- The Group’s high-end in-vehicle display systems and ultra-thin computer display systems recorded good sales in FY2022, benefiting from the shift to touch-screens for car systems and growing popularity of in-vehicle entertainment systems, along with the pivot to a Work-From-Home mode in response to the COVID-19 epidemic.
- Going forward, the Group believes orders for larger-size LCD BLUs for advanced automotive digital instrument panels will form an important part of its sales.
- However, sales of high-end ultra-thin notebook computer BLUs may remain soft as the COVID-19 epidemic situation improves and return-to-office activities continue around the world.
Office Automation (OA)
Product Applications: Components for printers, toner cartridges, copier machines, microwave ovens, TV monitors, projectors, office appliances
Business Outlook:
- The Office Automation segment and the LCD Parts and Accessories business (still considered part of the OEM and Accessories segment) continues to face twin challenges of continuous price competition and model obsolescence.
- To counter this, the Group will seek opportunities to manufacture higher-end models with higher margins, and also take stringent cost control measures for these businesses.
OEM and Accessories (PREVIOUSLY LCD PARTS AND ACCESSORIES)
Product Applications: LCD Parts & Accessories for smartphones, handsets, personal notebook computers, gamebox entertainment equipment
Business Outlook:
- The Group has set up a small R&D department to improve the profitability of its OEM business as it steadily gears up, and further move up the value chain by providing value-added activities and a wider range of offerings, from OEM contract manufacturing to participating in the product development and design process of its customers, such as BBPOS.
- Although there are fears of a US economy slowdown in 2023, the Group believes that by securing higher value, advanced model mobile payment devices, the OEM business will maintain its strong performance.
Others
Portfolio: Life Science, Green (Environmental), Other Business (Food and Beverage (F&B), General Trading)
Life Sciences Business: As the Group operates in a challenging industry with intense price competition and shortening product life cycles, it embarked on a diversification strategy in 2016 to identify other potential areas of growth and made its foray into Bio & life sciences.
- A Biotech Co., Limited (“ABio”) – CDW has acquired a controlling shareholding in A Biotech Co., Ltd. in April 2022. The ABio management has extended the research to brain, breast and colonial cancer cells, and is working closely with external professionals to perform genetic re-engineering of the anti-Cripto 1 antibodies, with the aim to improve the efficiency and effectiveness of the anti-Cripto 1 antibodies to different cancer cells. Additionally, ABio has an antibody library which can be used to research and create new antibodies. Revenue is anticipated to be generated from the antibody library by licensing out these antibodies to other pharmaceutical companies for drug development.
- CDW Life Science Co., Limited (“CDW Life Science”) / Meisterbio Co., Ltd (“Meister Bio”) – Pterostilbene is a polyphenolic acid with anti-oxidant properties, produced by plants to protect themselves against injury or attack, and is related to resveratrol. CDW plans to buy raw Pterostilbene and perform glycosylation to get Pterostilbene Glycoside, a stable compound very easily absorbed by human bodies and large Total Addressable Market (“TAM”) worldwide, such as shampoo and cosmetics manufacturers, and oral agent product manufacturers and suppliers.
- YOSHIMI JAPAN Skin Care – YOSHIMI JAPAN is an internally developed anti-aging skin care brand under JPT. Its first product, YOSHIMI Night Cream X, was launched in Asia in September 2022. The product is sold at physical stores under the external company Cosmo Beauty and online at the YOSHIMI JAPAN website. CDW is looking at developing an online store for sale of all its products, including YOSHIMI, to Asian countries.
- Nihon Trim Co., Ltd (“TRIM”) Japanese Alkaline Water Generator Brand – CDW has obtained global distributorship rights to TRIM, which will allow the Group to capture new opportunities as demand for alkaline water generators grow around the world. CDW is currently helping Nihon Trim to sell their product in Bangladesh and Vietnam.
Green Business: As a contract manufacturer, CDW is keenly aware of the carbon footprint and environmental impact that can be caused by traditional industries. That is why it has been actively pursuing new business opportunities in environmental products and technologies which include clean energy and nanomaterials.
- CUBOX – In July 2021, the Group secured the rights to distribute CUBOX portable lithium-ion battery packs for use in industrial, household and medical settings in Japan.
- ELECTRINE – CDW has also secured the exclusive distribution rights for an electric boat propulsion system developed by Electrine Inc., a leading Korean electric boat building company, in Japan, Hong Kong, and Southeast Asia.
- Nanomaterial Ship Bottom Paints – Further research is currently underway to improve the efficacy of ship-bottom paints with samples being tested on marine vessels. CDW has inked a distributorship agreement with the paint developer in April 2022 and signed a similar agreement for Southeast Asian countries in November 2022. This paint is still in the testing stage and will also require regulatory approval.
Business Outlook:
- ABio is currently conducting pre-clinical research using mouse efficacy studies for other cancer types such as breast, lung and colon cancer.
- Going forward, CDW Life Science Co. and Meister Bio plan to set up a Pterostilbene research and development center and manufacturing in Japan. The Group’s goal is to establish a new market of “preventive healthcare products” with functional organic compound glycoside, and establish a network of partners in Asia to study more uses of functional organic glycoside.
Information sourced from CDW Holding Financial Statements and Related Announcements on SGXNet