PETALING JAYA: Fiamma Holdings Bhd
is exploring diversification into manufacturing, as it currently only has in-house brands that are mostly made in China.
At the moment, the electrical home appliance distributor’s in-house brands include Elba, Rubine Italia, Faber, Tuscany, Vino, Ebac and Hauster.
The group is also the sole distributor for Fora, Beurer, Sony, Oral-B and Braun, to name a few.
Other than trading and services, Fiamma also operates within the property sector.
Group chief executive officer Jimmy Tan Chee Wee said he sees the opportunities the group could potentially have, should they develop and run their own manufacturing plant – having been in the market for more than 40 years now.
“There would be a good synergy that can help the business grow, particularly in specific categories. This is definitely something we are considering, we would also consider a potential acquisition,” he told StarBiz in a recent interview.
He added that they had not set any time frame yet for this venture.
At present, Fiamma works with a variety of factories in China where it collaborates and sources its products from.
Elba is in most key consumer categories, Rubine is positioned to be more specialised, while Faber has transformed into a trend-setter with many products in the small appliances segment.
“We work with only established brands, and have been sourcing these products for over 40 years,” he said.
“This is also why our brand has continued to grow from strength to strength.”
In addition, Fiamma formed a joint venture with SamYou Environmental Technology Co Ltd in 2024 to launch Vino air conditioners. Tan said the group saw vast potential in that category, supported by Malaysia’s tropical weather.
Then in 2025, the group acquired the remaining 30% interest in Kinsmedic Sdn Bhd, thus consolidating full ownership of its healthcare distribution business.
The group had already been operating in this segment via its distribution of medical equipment to hospitals and wellness centres.
“The health segment has continued to grow, and we are engaging more aggressively in this sector,” he explained.
Brands like IcanClave have been gaining traction in sanitisation treatment, as well as Fora – a Taiwanese brand that produces test kits for diabetes and such.”
In terms of a business model, Tan said there are two ways – first, a product development team that studies consumer behaviours and wants, then comes up with a list of products that the local market needs.
The second business model is Fiamma working with factories to design and develop products from scratch.
“What differentiates us from other brands is that Fiamma is localised, we know the pain points which enable us to design appliances that fit customers here in Malaysia. Unlike global brands, the products are either region- or global-based, rather than specific-market based.”
Tan said having an insight into what Malaysian consumers want will continue to be an advantage for the group.
While acknowledging that the market is saturated and competition is rife, Tan said the group is stringent on its three pillars – products, partners and talent.
“We have never neglected to focus on our pillars, because they are what drives the group. Despite global uncertainties, I expect us to do better in some categories this year. We want to grow, but we also need it to be profitable growth,” he said.
In its first quarter ended March 31, 2026 (1Q26), the group saw a 5.9% year-on-year increase in revenue to RM104.36mil, supported by the trading and services segment which grew 11.6% to RM87mil.
Its profit, however, dropped to RM10.75mil for the quarter compared to the RM36.19mil it posted for the same quarter in 2025.
The group said the decrease was mainly due to the non-recurring items recorded in 1Q25, predominantly a RM23.22mil one-off gain arising from the equity dilution in Aricia Sdn Bhd and Dawn Land Sdn Bhd.
Meanwhile, Mercury Securities Research expects the group’s earnings to register a two-year compound annual growth rate of 21%, backed by a modest topline growth of approximately 4%, in line with Malaysian mean household consumption expenditure.
The research house said Fiamma will benefit from the resilient demand for home appliances, also due to its strong market position and continued product expansion.
“We value Fiamma at RM1.32, based on a target price-to-earnings (P/E) multiple of 13.67 times applied to the financial year 2027 estimated earnings per share of 9.69 sen. The target multiple represents the 10-year historical P/E average of its selected peers.”
