Highlights
KLSE: PARKSON (5657)       PARKSON HOLDINGS BHD MAIN : Consumer
Last Price Today's Change   Day's Range   Trading Volume
0.19   0.00 (0.00%)  0.185 - 0.195  489,500
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Overview

Market Cap: 208 Million
NOSH: 1,094 Million
Avg Volume (4 weeks):2,477,000
4 Weeks Range:0.18 - 0.23
4 Weeks Price Volatility (%):
20.00%
52 Weeks Range:0.135 - 0.305
52 Weeks Price Volatility (%):
32.35%
Average Price Target: 0.27
Price Target Upside/Downside: +0.08
Stamp duty exempted for year 2021

Financial Highlight

Latest Quarter | Ann. Date 30-Sep-2021  |  25-Nov-2021
Next QR | Est. Ann. Date: 31-Dec-2021  |  24-Feb-2022
T4Q P/E | EY: -3.06  |  -32.72%
T4Q DY | Payout %: 0.00%  |  - %
T4Q NAPS | P/NAPS: 1.5323  |  0.12
T4Q NP Margin | ROE: -3.09%  |  -4.06%

Headlines

Date Subject
09-Nov-2021 Mplus Market Pulse - 9 Nov 2021
08-Oct-2021 Daily technical highlights – (PARKSON, CUSCAPI)
30-Aug-2021 业绩转盈 百盛价量齐升
13-Jul-2021 Mplus Market Pulse - 13 Jul 2021
28-Apr-2021 Trading Stocks - Parkson Holdings
25-Feb-2021 Mplus Market Pulse - 25 Feb 2021
19-Jan-2021 Mplus Market Pulse - 19 Jan 2021

Business Background

Parkson Holdings Bhd is a Malaysian based company which is engaged in operating and managing departmental stores. Its brands include "Parkson" and "Centro". The stores offer well known international brands of fashion and lifestyle related merchandise. Parkson operates its business in segments namely Retailing and Property. Major part of its revenue is from the Retailing segment. It carries its retailing business in four geographical areas including Malaysia, China, Myanmar and Indonesia. The company generates its revenue from operation of stores, which comes from China.
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  15 people like this.
 
kong73 Capital reduction is the process of decreasing a company's shareholder equity through share cancellations and share repurchases, also known as share buybacks. The reduction of capital is done by companies for numerous reasons, including increasing shareholder value and producing a more efficient capital structure.


Understanding Capital Reduction
After a capital reduction, the number of shares in the company will decrease by the reduction amount. While the company's market capitalization will not change as a result of such a move, the float, or number of shares outstanding and available to trade, will be reduced.

The act of capital reduction may also be enacted in response to a decline in a company's operating profits or a revenue loss that cannot be recovered from a company's expected future earnings. In some capital reductions, shareholders will receive a cash payment for shares canceled, but in most other situations, there is minimal impact on shareholders.

A company is required to reduce its share capital using a set of specific steps. First, a notice must be sent out to creditors of the resolution of the capital reduction. Second, the company has to then submit an application for entry of the reduction of share capital no earlier than three months after publication of the initial notice. Share capital reduction is then expected to be paid to shareholders no earlier than three months after the entry of reduction in the commercial register.

Example of Capital Reduction
Many companies decide to reduce capital through repurchase agreements (buybacks). For example, Sirius XM Radio, an American broadcasting company that provides ad-free satellite radio services, announced on January 29, 2019 that its Board of Directors had approved an additional $2 billion common stock repurchase. The additional $2 billion repurchase in 2019 will bring the company's buyback authorizations to $14 billion in total since 2013. Sirius XM will fund the repurchase through cash on hand, future cash flow from operations, and future borrowings.
09/11/2021 6:57 AM
TanHuatHeng what will happen to my 200000 shares? May I ask. Shall I let go .
09/11/2021 9:05 AM
Undi_PH Parkson proposes RM2b share capital reduction to reduce losses
Seah Eu Hen
/
theedgemarkets.com

November 08, 2021 21:41 pm +08


-A+A
KUALA LUMPUR (Nov 8): Parkson Holdings Bhd has proposed to cancel RM2 billion of its issued share capital in a move to reduce the group's accumulated losses.

According to a bourse filing on Monday, the group is in the red as accumulated losses amounted to RM932.47 million as at June 30, 2021.

The group expects to return to the black with retained earnings of RM1.05 billion after the capital reduction exercise.

After the exercise is completed, its issued share capital will be reduced to RM2.15 billion from RM4.15 billion.

Parkson said that the exercise will allow the company and group to rationalise their financial positions by reducing their accumulated losses through the reduction of its share capital which is lost or unrepresented by available assets of the group while reflecting a more accurate picture of the value of its underlying assets and financial position.

The reduction of accumulated losses from the exercise is expected to enhance the credibility of the company with the bankers, customers, suppliers, investors and other stakeholders according to the retail group.

The proposal, subject to shareholders' approval, is expected to be completed in the first quarter of 2022.

Parkson's share price was flat at 22 sen on Monday, valuing the group at RM240.66 million.

Lam Jian Wyn
https://www.theedgemarkets.com/article/parkson-proposes-rm2b-share-capital-reduction-reduce-losses
09/11/2021 9:23 AM
Undi_PH Drop is true better let PH rule after GE15.
09/11/2021 9:23 AM
nicholas99 Meaning it will be 0.11?
09/11/2021 9:32 AM
nicholas99 Because share amount still 1bil.. base on the pdf.
09/11/2021 9:34 AM
nicholas99 reduce share quantity may result on share price go up. just reduce the value... meaning... it will retain the current quantity... but value will drop.
09/11/2021 9:34 AM
TanHuatHeng what will happen to my share. still stay the same?

too bad sold them at .21
09/11/2021 9:35 AM
nicholas99 bad move. but its a necessary one.
09/11/2021 9:38 AM
TanHuatHeng thanks nick,

still not happy with it but at least I can feel better ,
09/11/2021 9:49 AM
kong73 This is the key statement gents

The group expected to return to black with retained earnings of RM1.05 billion after the capital reduction exercised

… expected to enhance the credibility of the company with bankers, customers, suppliers, investors and other stakeholders..

The way i see it - any activity that will help to show profit reporting is welcome
09/11/2021 11:10 AM
CartoonInvesting I can understand your feeling. Those die hard fans, what do you think? Good or bad?
09/11/2021 11:10 AM
warrenchok90 I miss que 0.205.... damn
09/11/2021 11:11 AM
warrenchok90 sell me some ticket pls
09/11/2021 11:11 AM
kong73 parkson recovery this quarter seems to be good
09/11/2021 11:13 AM
kong73 Increases in the total capital stock may negatively impact existing shareholders since it usually results in share dilution. That means each existing share represents a smaller percentage of ownership, making the shares less valuable.
09/11/2021 11:15 AM
kong73 After a capital reduction, the number of shares in the company will decrease by the reduction amount. While the company's market capitalization will not change as a result of such a move, the float, or number of shares outstanding and available to trade, will be reduced.
09/11/2021 11:16 AM
kong73 Supply vs demand - limited supply of shares available to trade will provide the opportunity to increase the value of the shares especially when the company is reporting good profitable numbers
09/11/2021 11:18 AM
kong73 A company may generally reduce its share capital in any way. In particular, a company may do so by cancelling or reducing the liability on partly paid shares, repaying any paid-up share capital in excess of the company's wants, or cancelling any paid-up share capital that is lost or unrepresented by available assets.
09/11/2021 11:30 AM
CartoonInvesting so of different from share consolidation.

any different from the number of share we buy?
09/11/2021 12:12 PM
kelvin61 Basically the reduction is coming from the share premium account before it was merged to the issued capital. No impact on your shares. Of course the news editors will pretend to be negligent did not highlight this and hope panicky selling happens so opportunist can buy cheap for no reason, cheers.
09/11/2021 1:51 PM
CartoonInvesting thank you kelvin
trying to find the answer high and low
mean i can buy if i think the price is stable.
but after the reduction, will the price be adjusted?
09/11/2021 2:47 PM
stupidddtrump @kong73,
Don't miss-lead investors here, nothing change in number of share issuing nor share price.
09/11/2021 3:21 PM
stupidddtrump someone trying to corner the shares from those who panicked selling. Don't be conned by such news.
09/11/2021 3:23 PM
kelvin61 @ CartoonInvesting. There is no price adjustment. Revenge shopping for Singles Day, Xmas, CNY all coming soon. Have faith, cheers.
09/11/2021 11:13 PM
Skywalker00 Next 2-3 Quarters are all positive... time it get to it’s place like others.
11/11/2021 6:54 PM
kong73 Where got misled…capital reduction by cancelling RM2billion worth of its issued share capital
12/11/2021 7:22 PM
Mabel #Skywalker00 Next 2-3 Quarters are all positive... time it get to it’s place like others.
11/11/2021 6:54 PM

Indeed. Inspired with Mabel's Body Shop progress, this week Mabel collect more in 3 tranches..

21
20.5
20..

To Our Success !

Meow Meow Meow
14/11/2021 3:34 PM
vivientac Wise move Parkson!
At the end their retained profit left 1bil+ and share capital 2bil+
It is just debiting share capital 2bil and credit to retained profit ( at the moment accumulated losses 970mil)
It is good for their credit rating assessment.
19/11/2021 6:48 AM
warrenchok90 anyone same like me bought again at 0.205??
19/11/2021 3:55 PM
warrenchok90 not make it 0.20... for me 0.205 still good for collect. Generally the news about the reduction actually good for the company future growth because it decreasing it debt.
19/11/2021 3:58 PM
warrenchok90 imagine company with lower debt high income they have so much possibility .. share price will up
19/11/2021 3:59 PM
Klse_faizan Only you buy. Keep believing in this counter cant make you rich
20/11/2021 2:12 AM
Mabel Why not?

This is for next year...

Slowly and surely

Meow
20/11/2021 3:55 PM
Mabel At this run rate should be better than FD..

Meow
20/11/2021 3:56 PM
warrenchok90 fully agreed with Mabel. imagine I secured 3 times profit in this counter 10 % profit...
20/11/2021 4:27 PM
warrenchok90 able to top up again at 0.205... if Wednesday back to 0.205 will top up more... since unable to collect tsh anymore...
22/11/2021 5:14 PM
jokurprg Not longer legend. Padini is better
23/11/2021 1:10 AM
smartgood Isn't capital reduction mean can lost a lot of money? Can anybody enlighten?
24/11/2021 3:35 PM
zach123 Capital reduction - Just account treatment (Transfer amount in Share Capital to Accumulated loss), Total Equity not change.
25/11/2021 6:17 PM
zach123 Units of shares, NBV per shares remain unchanged.
25/11/2021 6:20 PM
SolidGold Koyaking
26/11/2021 11:35 AM
TripleMMM Good time to buy !
26/11/2021 11:52 AM
clp72 i suspect the reason they did this is to raise capital... which means issuing more shares, just speculating
26/11/2021 12:21 PM
warrenchok90 today all drop .....
26/11/2021 12:22 PM
kong73 The group expects to return to the black with retained earnings of RM1.05 billion after the capital reduction exercise.
26/11/2021 12:54 PM
kong73 Seems like good news to me
26/11/2021 12:54 PM
Bmw X5 Those bought above 0.200 .... All got trap at pent house... Any comments?
26/11/2021 2:57 PM
TanHuatHeng I am a little lucky to sell at .21. At time thought it was bad move.
Now feel happy but wonder can BUY back or not.
29/11/2021 9:03 AM
Newtrader88 I think can collect below 20cents , it drops bcoz sudden market shocked , now saying omicron case symptoms very mild , share price maybe can rebound after this
29/11/2021 11:32 AM


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