InvestIdeas

Metro Hldgs
Price - $0.78 Target - $1.20

Metro Hldgs, long a conservative tight-lipped company, has begun to be more communicative with investors. We expect share price to respond positively, which is critical to Metro’s ambitions to build up its property assets in PRC. With property rental income forming 70% of profits, Metro, today is more a property player than a retailer and should be better valued.

It has a portfolio of retail and commercial properties in PRC’s top tier cities, strong financials and extensive retailing experience. Cash on hand of more than $173m as at Mar-08 will be further fortified by a $200m debt-raising exercise.

Our RNAV of $1.50 uses company’s Mar-08 valuation for its completed investment properties in Shanghai, Beijing, Guangzhou; properties under-construction are valued using JLL’s capital values for Beijing Grade A office space and Prime retail space. Our price target assumes a 20% discount to account for execution and market risks. Initiate with BUY. – Kim Eng Securities (30 Jun)

Concerning the 1 for 10 warrants, how long will it be traded on SGX ? How soon must the shareholder have it converted into ordinary share ? Thanks in advance for kind advice.

Latest update
Metro warns of Q2 loss

By WONG WEI KONG
Metro Holdings warned on Tuesday of second quarter losses, saying that the financial results for Q2 FY2009 are expected to be significantly affected by volatile market conditions.

This is the result of the decline in the fair value (unrealised) of the property division's portfolio of short term investments which mainly comprise units in REITS.

'Whilst earnings from the group's core business segments of property and retail remain healthy, the decline in the fair value of the portfolio of short term investments is expected to result in the group reporting a loss for Q2 2009,' Metro said.

Further details will be disclosed when the company finalises and announces the group's unaudited financial results for Q2 2009 on or before 14 November 2008.

November 14, 2008, 1.24 pm (Singapore time)

Metro's Q209 sinks into the red

By ANGELA TAN

SINGAPORE - Metro Holdings on Friday reported it has sunk into the red for the fiscal second quarter ended Sept 30, 2008, compared to a net profit a year ago.

Net loss of the three months was $4.90 million (US$3.24 million) compared to a net profit of $4.83 million a year ago.

Revenue fell 19.54 per cent to $46.91 million. This is because last year's revenue included sales of the Metro Tampines department store which closed in August 2007.

where else, besides paragon, does metro have a presence in singapore???

as a school boy, i recall metro to be an uptown shop.... to be able to buy something and having it wrapped with metro's house wrapper was something to parade around proudly...

now...metro is like a OG to me... their clothes, shoes, accessories departments, all cmi....maybe this explains why they have been shutting down many of their shops in the last 3 decades

Compasspoint in Sengkang.

oh yes..i recall that sengkang metro shop....sell those $20 pants...$15 business shirts...racks of $10 "pick your choice" diadoras, mitzunos, nike that even grandmas wont wear at home, pumas, etc.... ...yes, i remember that metro shop now... tx

and causeway point..

kennynah wrote: as a school boy, i recall metro to be an uptown shop.... to be able to buy something and having it wrapped with metro's house wrapper was something to parade around proudly...

now...metro is like a OG to me... their clothes, shoes, accessories departments, all cmi....maybe this explains why they have been shutting down many of their shops in the last 3 decades

Maybe it is becuz that your earning and purchasing power has gone up considerably since your school boy days..

When I was very young ( maybe 7 ? ), I recalled going to Robinson with my parents and mum mentioned that the things there are very expensive and we cant afford those things.

Over the years, our purchasing power has gone up and we would not need to think twice about buying things from Robinson..

Well, I still think twice about buying from Robinson's, and Isetan... Hahaha... but then, I'm one of those guys who can use wallet until no more thread left still using, or use a pair of shorts until the elastic so loose that if I don't pull the string tight tight and tie knot, the shorts will become socks one..