Convenience Retail Asia 0831

[winston]

not vested

Circle K to expand as net soars

Convenience Retail Asia (0831), which reported a 22 percent growth in net profit last year, said it plans to extend its network of Circle K Convenience Stores and Saint Honore cake shops to more than 600 outlets this year.

The retail unit of Li & Fung (0494) said earnings came in at HK$166 million last year.

Sales grew 11 percent to HK$3.97 billion, while gross profit margin rose 0.5 percent to 34.8 percent.

Chief executive Richard Yeung Lap-bun said the biggest challenge will be operating costs.

"Rents rose 18 percent for the stores that renewed tenancies last year, but we closed some shops for which landlords demanded too much and reopened in other districts."

Convenience stores and bakeries had same-store sales growth of 7 and 8.5 percent, respectively.

Yeung said the firm plans to invest HK$65 million in factories and to open up to 70 stores in addition to 543 existing ones in Hong Kong and China.


It has 85 shops in Guangzhou.
Yeung said Shenzhen will be a main area of expansion as the firm has a plant and a distribution center in the Pearl River Delta.

CR Asia had HK$718 million cash with no bank loans. It will pay a final dividend of 11 HK cents per share, up from 8.5 HK cents a year ago.

http://www.thestandard.com.hk/news_deta ... 20308&fc=7

[winston]

not vested

Convenience Retail Asia (0831) owns the Circle K and Saint Honore cake shop chains in Hong Kong and the mainland.

Yesterday, it said first-half profit jumped 32percent from a year back to HK$104 million.

The stock is now priced at a 10-year high or 19 times historical earnings, offering a 3 percent dividend yield. This is a bit high.

Source: Dr. Check, The Standard HK

[winston]

not vested

Hong Kong-based Convenience Retail Asia Ltd has reduced store opening target for this year to 590 from 600, citing escalating rent, said chief executive officer Richard Yeung.


Source: HONG KONG ECONOMIC JOURNAL