Diamond Equity Research Initiates Coverage on Brillia Inc. (NYSEAM: BRIA)

/EIN News/ -- New York, NY, April 09, 2025 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has initiated coverage of Brillia, Inc. (NYSEAM: BRIA). The in-depth 28-page initiation report includes detailed information on Brillia Inc’s business model, services, industry overview, financials, valuation, management profile, and risks.

The full research report is available below.

Brillia Initiation Report

 

Highlights from the report include:

• Stable, Cash Flow Positive, Asset-Light Business Model with Underappreciated Optionality and Upside from High-Margin Brand Expansion: BrilliA’s established business model, anchored by enduring partnerships with global industry leaders, delivers stable cash flow and reliable revenue streams. Its integrated operations provide room for expansion into higher-margin opportunities through the DIANA brand rollout. Further enhancing operational agility, BrilliA’s asset-light structure, maintained by minimizing physical assets, allows the company to channel resources more effectively into its core competencies. From our vantage point, this robust financial foundation enables BrilliA to respond to market shifts and invest strategically in long-term growth initiatives. Given the current valuation, the market may not yet fully appreciate BrilliA’s ability to leverage its asset-light model and established relationships to pursue profitable brand-driven expansion initiatives, providing meaningful upside potential.

• Strategic Market Positioning Enabled by Long-Standing Global Partnerships and Industry Expertise: Long-term relationships with over 20 major brands, including (but not limited to) Fruit of the Loom, Hanes Brands, Jockey International, Hennes & Mauritz, Canadelle, and Li & Fung, underscore BrilliA’s competitive advantage. These enduring partnerships not only secure a stable revenue base but also validate the company’s operational capabilities in the intimate apparel market. This strategic positioning strengthens its reputation and provides leverage for negotiating favorable terms in future contracts.

• Existing Business Supports Strategic Opportunity in the Rapidly Expanding Asian Lingerie Market: The global lingerie market is on a strong growth trajectory, expanding from $90 billion in 2024 to a projected $142 billion by 2030, driven by evolving consumer preferences, digital transformation, and increasing demand for comfort, inclusivity, and sustainability. While North America and Europe remain key markets, the Asia-Pacific dominates, contributing 40% of global lingerie revenues, with Southeast Asia emerging as a high-potential region led by Indonesia. Consumers are increasingly prioritizing comfort, inclusivity, and sustainability, fueling demand for innovative fabrics, diverse sizing, and ethical sourcing. Digital disruption is reshaping the competitive landscape, as traditional players like Victoria’s Secret, Hanesbrands, and Triumph International face mounting pressure from agile, direct-to-consumer brands. BrilliA’s DIANA brand is strategically positioned to tap into Southeast Asia’s growing demand by expanding product offerings, strengthening its digital presence, and integrating sustainability-focused initiatives, aiming to establish itself as a dominant player in the region’s evolving lingerie market. In our view, established businesses leveraging core competencies to enter new segments typically bear lower risk compared to startup enterprises lacking a proven operational track record.
• Vertically Integrated Supply Chain Model Efficiently Manages Lead Times, Reduces Production Risks, and Maintains Pricing Power, Representing a Significant Competitive Advantage : BrilliA’s end-to-end integration, from design & prototyping to production & quality control, promotes efficient operations and cost-effective manufacturing. This vertical integration supports competitive pricing, timely delivery, and consistent product quality, forming a robust foundation for scaling the business. By streamlining production processes and reducing lead times, the company is well-equipped to respond to market demands swiftly and efficiently. Additionally, BrilliA is finalizing a manufacturing agreement with Magic Link Garment Ltd in Cambodia to expand capacity and leverage trade benefits such as duty-free access to Canada and preferential treatment under the EU’s EBA program. This move is expected to enhance operational efficiency and support an internally projected revenue increase of up to $5 million in 2025, subject to market conditions.
• Analysis Indicates Meaningful Upside Potential from Geographical, Product, and Digital Expansion Initiatives: With plans to expand into key markets in Southeast Asia and Europe, along with diversifying into adjacent product categories such as sleepwear, activewear, baby wear, and period underwear, BrilliA is well-positioned to target new market segments. This strategy mitigates regional risks while driving long-term growth by broadening the customer base and enhancing cross-selling opportunities and revenue stability. We believe targeted investments in digital marketing can effectively drive online engagement and new customer acquisition, while the ongoing recruitment of design talent positions the company to sustain innovation and competitiveness. Additionally, based on preliminary analysis of reciprocal tariffs introduced by the Trump Administration on April 3, 2025, BrilliA’s production exposure in Indonesia (32% tarrif) could position it more favorably than peers with higher exposure to Vietnam (46%), Thailand (36%), or Cambodia (49%), potentially enabling the company to better manage cost volatility and trade disruptions. Collectively, our analysis suggests that BrilliA has multiple avenues available to expand beyond its existing business segments while being relatively insulated from near-term geopolitical trade risks.
• Valuation: BrilliA, Inc. is strategically positioned for growth, leveraging its established B2B operations to support the expansion of the high-margin D2C DIANA brand in the luxury intimate apparel market. With strong industry partnerships and a focus on quality, innovation, and digital transformation, BrilliA aims to capture significant opportunities in the multi-billion-dollar global lingerie market. Its dual business model balances the profitability and stability of its B2B segment with the high-growth potential of its D2C brand. We believe the market currently undervalues the embedded optionality associated with the successful expansion into the premium D2C segment, presenting additional upside potential. Using a valuation methodology weighted 80% toward a DCF analysis (WACC at 12.25%, terminal growth rate at 1.5%) and 20% toward a sum-of-the-parts approach, we model the company’s value at approximately $183.81 million, or $6.00 per share. Achieving this valuation hinges on successfully scaling DIANA, while preserving robust cash flows from its B2B operations and overall successful execution.

About Brillia, Inc.  

Brillia Inc., established in 2023, specializes in the design, production, and distribution of women’s intimate apparel across global markets, including North America, the European Union, the Asia-Pacific, Latin America, and the Middle East. Its product range encompasses bras, panties, bodysuits, swimwear, dresses, and related apparel. 

About Diamond Equity Research

Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.

For more information, visit https://www.diamondequityresearch.com.

Disclosures:

Diamond Equity Research LLC is being compensated by BrilliA, Inc. for producing research materials regarding BrilliA, Inc. and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for research engagement. As of 04/09/25 the issuer had paid us $30,000 for our company sponsored research services, which commenced 12/30/2024 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 04/09/2025. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment.This report does not explicitly or implicitly affirm that the information contained within this document is accurate and/or comprehensive, and as such should not be relied on in such a capacity. All information contained within this report is subject to change without any formal or other notice provided.  Investors can find various risk factors in the initiation report and in the respective financial filings for Brillia, Inc. Please review initiation report attached for full disclosure page.   

Contact:
Diamond Equity Research
research@diamondequityresearch.com

Attachment

• Brillia Initiation Report