Parkson Retail Asia

[winston]

not vested

The Board of Directors of Parkson Retail Asia Limited ("Company") wishes to announce that the Company will be releasing its Full Year Unaudited Financial Results for the Financial Year Ended 30 June 2012 on 08 August 2012.

[winston]

not vested

A baby step into a new region
OUTPERFORM - Maintained
Share Price S$1.42
Tgt. S$1.80

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PRA’s latest acquisition in Sri Lanka adds little to earnings given its small size, but extends the company’s geographical footprint beyond S.E. Asia into the Indian subcontinent.

We continue to like PRA’s growth outlook projected at 22% net profit CAGR from FY11 to FY14, and find the current valuation, at a 29% discount to S.E. Asian retailers’ peer average, attractive.

Maintain Outperform and target price based on 20x CY13 (~20% discount to peers).


Source: CIMB

[winston]

Parkson Retail Asia - And then there are five

4Q performance was a tad weaker than expected on higher labour and depreciation costs.

However, SSSG guidance for FY13 is fair, and we like the upcoming entries into Cambodia and Sri Lanka, which are small but strategic.

FY12 core profit was <1% below our estimate and 2% below consensus.

We reduce our FY13-14 EPS and target price 3% to reflect the slower runrate, but maintain Outperform given solid high-teens growth and the 24% discount to SEA retail peers.

Our target still pegged to ~20x CY13 EPS (20% discount to peers).

Source: CIMB

[winston]

not vested

Parkson Retail Asia - Beneficiary of emerging Asean; fair value S$1.55

DBSV Research issues an Equity Explorer report on Parkson Retail Asia (PRA) with fair value of S$1.55.

PRA is a leading department store operator in Southeast Asia, and is a beneficiary of Southeast Asia’s rising consumption growth. The
group is usually an early entrant in the markets it operates in.

It is the largest departmental store operator in Malaysia and second largest operator in Vietnam since its entry there in 2005. Its first store in Myanmar is expected to be operational by March 2013.

Our analyst projects 15% earnings growth in FY13F largely driven by both store expansion and same store sales growth. This is on the back of a growing middle class and a better consumption appetite in Asean countries.

PRA currently trades at 19x FY13F PE, just under its average PE of c.20x. We believe the counter has priced in potential earnings upside surprise from its new markets. Upside price catalysts could come from a better-than-expected operational performance from its stores, resulting in a higher growth rate.


Source: DBS

[winston]

not vested

Parkson Retail Asia Q1 profit fall 12.5% By Carine Lee

Parkson Retail Asia saw its net profit for the fiscal first quarter ended Sept 30, 2012 fall 12.5 per cent to S$11.59 million, despite a 7.4 per cent increase in turnover to S$113.87 million.

The Asian department store operator said the dip in net profit was largely due to the group incurring non-operational costs of S$1.9 million which related to expenses for an e-commerce start-up, acquisition-related costs for the equity stake in an associate, unrealised exchange loss on foreign currency deposits, brand-building expenses, Cambodia-related expenses and head office corporate expenses.

Earnings per share were 1.71 cents, down from 2.22 cents previously.


Source: Business Times

[winston]

not vested

Parkson Retail Asia: Look forward to a stronger 2H (Downgrade to Neutral, S$1.69, TP: S$1.77)

PRA reported a 3% decline in 2Q13 PATMI of S$13.2m, which came in below our expectations. The decline is attributed to lower same-store-sales growth across all markets.

Malaysia recorded SSSG of 2.8% vs our forecast of 7% (guided: 7-9%) due to a late Chinese New Year which will see the festive season buying only reflected in 3Q13.

In Indonesia, SSSG was 4.5% vs forecast of 9% (guided: 8-10%) as one store in Jakarta suffered from a temporary drop in traffic due to a new mall opening nearby but traffic has since reverted back to normal.

Vietnam fared worse than expected with SSSG declining by a steep -8.4% yoy due poor economic conditions as well as operating losses from its new mall.

Going forward, we expect a stronger 2H13, particularly from Malaysia which accounts for 74% of Group revenue.

We are maintaining our earnings estimates and DCF-derived TP of S$1.77 (WACC: 9.2%, growth: 1.5%) which implies a FY13F P/E of 21x.

As stock price has appreciated to reach our fair valuation, we downgrade the stock to a NEUTRAL.

Source: DMG

[winston]

Parkson Retail Asia - Good value

Parkson’s management reiterated during the luncheon we hosted for management and investors in Singapore that Malaysia should benefit from a stronger 2H. However, investors hoping for corporate actions may be disappointed as there are no immediate plans. Nevertheless, we retain our positive view as the share price has yet to react to Malaysia’s recovering profitability.

We maintain our Outperform call and target price, which is still based on 20x CY15 P/E, in line with regional peers. CY15 P/E is just 14x at the current share price. The stock may be catalysed by the improving profitability in Malaysia.

Source: CIMB

[winston]

not vested

More Pain Before Gain

Parkson Retail Asia’s (PRA) 1QFY15 (Jun) results missed expectations, with net profit down 33.1% YoY to SGD6.2m.

Downgrade to SELL (from Neutral), with a lower TP of SGD0.65 (27% downside), following our 18-25% earnings cut for FY15-17.

We had earlier expected FY15 to remain difficult, but business conditions now appear to have worsened.

While PRA has a proven business model to ride this out, we expect profit to worsen before picking up.

Source: DMG

[winston]

not vested

Parkson Retail Asia - Solving IndoChina, Malaysia soft

Parkson Retail Asia (PRA) seems to be getting to grips with problems in its ex-Malaysia markets.

1H15 core profits (S$18.0m) was in-line with our expectations (50%) and consensus ( 51%).

We see scope for higher earnings in 2H as losses in its ex-Malaysia markets gets sorted out.

At current valuations, with a 6.8% dividend yield, this is good enough for a upgrade.

We raise earnings by 2-11%. Our target price (18x FY16 P/E) gets pulled up along and triggers an upgrade to Add.

The only dampener in 2Q15 is weak Malaysia trends; a consumer that is due to slow post-GST is its biggest risk.

Source: CIMB

[behappyalways]

parkson-retail-asias-1q-losses-more-double-129-million
https://www.theedgesingapore.com/parkso ... 29-million