Journey to Wealth
Parkson Holdings - Affected by softer CNY sales Buy
- Parkson Holdings Berhad (PHB) reported a rather muted 3QFY12 results, bringing 9M earnings to RM298mil. Results account for 70% of our full year forecast and 72% of concensus.
- We deem results to be a tad below our expectations as 4Q is expected to be a sequentially softer quarter due to absence of festivities. Consequently, our FY12F-FY13F earnings have been trimmed by 8%-10% based on our revised outlook of a more modest economic growth in China.
- PHB's lacklustre performance this quarter was mainly attributed to a lower-than-expected Chinese New Yeardriven sales turnover in key countries of China, Malaysia and Vietnam. Unlike last year, the earlier timing of CNY festivity had resulted in shorter sales promotional days in 2011. As a result, revenue inched up by only 1%. However, net profit fell by 3% due to a higher effective tax rate (QoQ: +2.9ppts).
- The group's property and investment holding division had successfully turned into the black with EBIT of RM1mil this quarter. Recall, the division recorded a loss of RM3mil in the preceding quarter. The division which oversees the group's first local self-owned retail mall ' KL Festival City should continue to see improving performance on back on rising tenants.
- For 9M, revenue was up 18% YoY largely due to healthy same store sales across different countries ' Malaysia :10%, China: 7%, Vietnam: 12% and Indonesia: 10%. Despite this, bottom line improvement was only 13% due to EBIT margin compression (YoY: -4.2ppts) from higher operating expenses.
- Management declared a second interim single-tier dividend of 6sen/share for this quarter, bringing total dividends to 16sen/share for 9MFY12. We forecast total dividends of 20 sen for FY12F, based on a higher dividend payout assumption of 55%.
- No change to our annual new store forecasts at 8-10 outlets for China, 2 for Malaysia, 2 to 3 for Vietnam and 4 to 5 for Indonesia.
- We maintain our BUY recommendation on PHB with an unchanged fair value of RM6.84/share based on our Sumof-part valuation. The group's long term growth remains intact, underpinned by expansion in gross floor area from new store openings.
Source: AmeSecurities
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
More articles on Journey to Wealth
Ekovest: No plan to launch another offer for Iskandar Waterfront City
Created by kiasutrader | Mar 29, 2018
Kenanga Research - On our Portfolio - Parliament dissolution around the corner?
Created by kiasutrader | Mar 25, 2013
Plantation Sector - Proposed accounting standard scrapped OVERWEIGHT
Created by kiasutrader | Mar 25, 2013
Pavilion Reit - Limited upside, earnings upside have been priced in HOLD
Created by kiasutrader | Mar 25, 2013
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Latest Videos
Apps
Top Articles
1
2
4
save malaysia!
Visa-free travel to China extended for Malaysians to 30 days
5
6
7
Good Articles to Share
8
Good Articles to Share
Four convicted in Spain over homophobic murder that sparked nationwode protests
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
