CEC International 0759

CEC International 0759

Postby winston » Fri Jul 31, 2015 6:20 am

not vested

CEC profit up 16.6pc

CEC International (0759), the operator of local retail chain 759 Store, saw annual net profit surge 16.6 percent to HK$27.7 million from the previous fiscal year, thanks to its fast-growing retail business.

The retailer, with branded shops selling products from snacks, cosmetics, household goods and baby toys to bedding, opened 57 more retail outlets in 12 months to April 30, leading to a total of 249 branches, including five restaurants and one bakery.

Turnover soared 32.3 percent to HK$2.42 billion, with almost 90 percent coming from retail sales.

Retail segment revenue jumped 48 percent to HK$2.13 billion.

Gross profit margin rose to 31.8 percent, up 1.9 percentage points, due to expansion of its higher margin retail business.

An annual dividend of 1 HK cent was proposed, up from 0.7 HK cents last fiscal year.

In the future, the company aims to transform 759 store into a brand of "a large grocery store" or "a small department store."

Moreover, 759online was launched to develop its regional retail business early this month. Chairman Coils Lam Wai-chun expected e-commerce business to break even in five years.

Source: The Standard HK
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 99078
Joined: Wed May 07, 2008 9:28 am

Re: CEC International 0759

Postby winston » Fri Sep 11, 2015 7:51 am

not vested

Let's talk about CEC International Holdings (0759) today. It was a manufacturer of coils used in electrical and electronic components for many years.

Since 2010, It started selling snacks, beverages, frozen food and grocery items, mainly from Japan, out of its 759 Store chain.

The stock started to rally from HK$1 level in November 2013 to reach HK$4.70 just one month later. At that time, people compared its valuation with that of Sa Sa (178) as CEC announced it may sell personal care products.

The stock gradually fell despite 759 Store opening more outlets in Hong Kong.

The stock reached a 20-month low of HK$1.40 recently. Yesterday, it suddenly rallied 35 percent to HK$1.96 after the company said it planned to place its goods in local S.F. Express shops.

The 759 chain may ultimately sell its goods in all S.F. Express shops in China. That's why the stock closed at HK$1.87 yesterday, up 29 percent. The share trades at 44 times its historical earnings. This is not cheap.

The profit margin at supermarkets and retail stores is typically around 1-3 percent. It is really a tough business.

Source: Dr Check, The Standard
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 99078
Joined: Wed May 07, 2008 9:28 am

Re: CEC International 0759

Postby winston » Fri Sep 11, 2015 7:58 am

not vested

SF Express deal lifts CEC shares

Shares of CEC International Holdings (0759) jumped by as much as 35 percent after SF Express founder Wang Wei said his firm would cooperate with CEC's 759 Store retail chain.

From this month, 759 Store will offer products at 12 local SF Express branches, media reports said yesterday.

Its outlet in Tai Wo is SF Express' first branch to display and sell 759 Store products starting from Sunday.

SF Express is China's largest private express logistics firm with more than 12,000 service centers around the globe, including 91 in Hong Kong.

CEC chairman Coils Lam Wai-chun said Wang met him about two months ago and they struck a deal within a few hours. He quoted Wang as saying that 759 Store's simple corporate structure and quick action matches "the style of SF."

Lam said the agreement is a good one for 759 Store as SF has agreed to be responsible for rental and personnel costs, while CEC will take a portion of the profit from sales. Rental costs now eat up more than 10 percent of CEC's revenue, Lam said.

It has no plans as yet to tap the China market, he said. CEC International yesterday closed 29 percent higher at HK$1.87.

Source: The Standard HK
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 99078
Joined: Wed May 07, 2008 9:28 am

Re: CEC International 0759

Postby winston » Wed Dec 23, 2015 7:09 am

not vested

CEC shares fall on profit woes

Shares of the 759 Store retail chain operator CEC International (0759) fell 8 percent after net profit more than halved, amid surging rents and staff costs.

The firm's retail business saw operating profit tumble 32 percent to HK$22.15 million for the six months to October 31. Profit margin slid to just 1.9 percent compared with 3.4 percent a year ago.

Although revenue of the retail business grew 22.3 percent to HK$403 million, shop rental expense surged 19 percent to HK$1.16 billion, while other expenses such as shop management fees and staff salaries rose 29 percent to HK$322 million.

Chairman Coils Lam Wai-chun said the company has cut some small-scale or specialty stores, and would open more large-size stores as they have proved to be more popular.

It would also introduce more "necessities such as food groceries, chilled and frozen foods, housewares and personal care products." For instance, it sold about 6,000 tonnes of rice in the first half of the fiscal year.

"The downward trend of the retail market had formed," the company said.

It will also sell a series of plastic products under the "759 KAGUYA" brand, such as cups, plates and food containers, as well as producing self- produced bottled purified water.

The group may invest in a central bakery workshop to sell pre-packed products. The retail chain has 281 branches, compared to about 290 stores of ParknShop in Hong Kong.

Source: The Standard
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 99078
Joined: Wed May 07, 2008 9:28 am

Re: CEC International 0759

Postby winston » Tue Apr 12, 2016 6:48 am

not vested

More 759 closures

CEC International (0759), which operates snack retailer chain 759 Store, plans to close up to 15 outlets amid local retail sluggishness.

The move marks its first large- scale shutdown since it started operating in 2010.

"If the yen rises to HK$7.50 against 100 yen, the number of shops to be closed down will double to 30," warned chairman Lam Wai-chun. In late trade yesterday, 100 yen was equivalent to HK$7.16.

"Japanese snack items will no longer will be attractive if their prices go up further," Lam said.

Sales during Easter and Ching Ming rose 20-30 percent from levels during ordinary days. But that was lower than a surge of up to 100 percent in the past, convincing him that tough days are ahead.

The firm has over 260 stores after shutting down six outlets last year.

Source: The Standard
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 99078
Joined: Wed May 07, 2008 9:28 am

Re: CEC International 0759

Postby winston » Tue Apr 12, 2016 6:48 am

not vested

More 759 closures

CEC International (0759), which operates snack retailer chain 759 Store, plans to close up to 15 outlets amid local retail sluggishness.

The move marks its first large- scale shutdown since it started operating in 2010.

"If the yen rises to HK$7.50 against 100 yen, the number of shops to be closed down will double to 30," warned chairman Lam Wai-chun. In late trade yesterday, 100 yen was equivalent to HK$7.16.

"Japanese snack items will no longer will be attractive if their prices go up further," Lam said.

Sales during Easter and Ching Ming rose 20-30 percent from levels during ordinary days. But that was lower than a surge of up to 100 percent in the past, convincing him that tough days are ahead.

The firm has over 260 stores after shutting down six outlets last year.

Source: The Standard
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 99078
Joined: Wed May 07, 2008 9:28 am


Return to C

Who is online

Users browsing this forum: No registered users and 1 guest