Showing posts with label parkson retail. Show all posts
Showing posts with label parkson retail. Show all posts

26 April 2018

3 Stocks To Look At Now

This week, USD has been on a rise. And the weekly chart of STI looks to set for a correction to 3520 for this week before any chance that the rally may continue. At the same time, FOMC meeting is on 1 May. So probably market should be relatively quiet for now.

Safe haven assets such as gold seem to have bottomed and could possibly rise again if the equities markets were to correct further.

Straits Times index






Personal list of stocks to look at:




Parkson

Parkson Retail O9E : totally oversold, a bottom has formed at 0.050.

Retail business has been turning around and changing business model Currently, the share lacks market focus. Yet this is a chance to buy when the prices are low for a good bargain.

 No doubt volume is very low, it is good for to buy and hold to wait for the upcoming results on 1st May. The coming quarter results should include the CNY as well as Hari Raya festival sales, which (hopefully) it is good and improving.





Keppel corp 0.14 dividends XD 25/04/18

possible after XD tomorrow price may fall back to 8.10 and hover around the 8.00 mark as before.
So the question is to decide the collect the dividends by holding on, or to sell it for profits by today.




Raffles Medical

A defensive stock that looks to break 1.20. The Chong Qing hospital will be opening in 2H18. which this is an excellent news that should give some positive boost to the price.
Not to mention there is 1% div per annum. It is not a lot, but its dividends have been stable and consistent since 2000.




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28 November 2017

BUY PARKSON RETAIL (O9E) FOR 40% UPSIDE

update:

JOHOR BARU: The largest mall in Malaysia's Johor state opened its doors on Tuesday (Nov 28). 
Located along the Skudai Highway, Paradigm Mall JB spans more than 2 million sq ft and is just a 20-minute ride from the Woodlands Causeway.  

(Source: Paradigm Mall JB) 

The mall is bigger than Singapore's largest shopping centre VivoCity, which has a gross floor area of 1.5 million sq ft. 
Paradigm Mall JB will feature the largest movie theatre in the state operated by Golden Screen Cinemas, premium supermarket Village Grocer as well as department store operator Parkson.
Parkson will be the mall's anchor tenant, taking up 200,000 sq ft of space. The outlet is Parkson's first regional store in the southern part of Peninsular Malaysia. 
For adrenaline junkies, the mall showcases a 20,000 sq ft ice skating rink, a Camp5 indoor climbing gym and Malaysia's first indoor skate park.

With more than 500 retail lots spread over six floors, some well-known names among the tenants include H&M, Uniqlo, Harvey Norman, Wendy's, Marrybrown and Under Armour. 
Apart from the retail and mall space, the complex also features a 24-storey serviced apartments tower and a 296-room four-star hotel. 
Paradigm Mall, which has another shopping complex in Petaling Jaya near Kuala Lumpur, is owned and developed by WCT Holdings. 

Read more at http://www.channelnewsasia.com/news/lifestyle/johor-s-largest-shopping-centre-paradigm-malljb-opens-9446578





The last report on Nov indicated that Parkson retail has S$12m losses, majorly due to an increment of operational cost and gestation of new stores.

As a result, the shares have tanked from 0.125 to a low of 0.063.


Recent buying volume below 0.075



Note the stated reason is for the lack of revenue. It states that it is due to the absence of festival holidays of Hari Raya/LeBaran.

However, this also means that it will be starting in June 2018.


Eid al-Fitr 2018 will begin on the evening of

Thursday, 
14 June
and ends on the evening of

Friday, 
15 June

This means that there will be likely no negative results that will be released from now until June.

Next, Tan Sri Cheng Heng Jem holds, directly and indirectly, 53.52% of the voting shares in PHB, which is the sole shareholder of East Crest International Limited. East Crest International, in turn, owns almost 70% of Parkson. There is no insider selling, and I assume the Parent would want money to flow back upwards, hence I believe the "will" to distribute dividends will be there.


They are paying themselves peanuts. I like in terms of presence in popular malls, parkson has done a good job too. Look at the three links

1) http://www.kuala-lumpur.ws/klshopping/top-10-shopping.htm

2) http://www.wonderfulmalaysia.com/faq/top10-shopping-malls-in-kuala-lumpur.htm

3) http://web.parkson.com.my/whatson/store-locator/

In either survey, Parkson is the anchor tenant in 4- 5 of the most popular malls.

Also, if u take a look at Aeon, a competitor in the department store space. U compare Apple to Apple, by taking only Aeon Retailing Segment and Parkson Malaysia Segment, Parkson again fare better.

Now looking at the charts, there are some buying volume from any prices below 0.070.

I strongly believe that it will retest the 0.100 price level first, and then 0.125 if there is strong volume.






This is backed by the latest EPS (Earnings Per Share) as well as NAV (Net Asset Value) of the shares.

In other words, given the current price 0.074, we are looking at an upside of 35% if it hits 0.100. Worth a try to do some bottom fishing here!

Good luck!



 Summary:

 Entry:  below 0.075
First Take Profits: 0.090 to 0.100
Second Take Profit: 0.115 to 0.121

 Cut Loss: 0.065
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10 July 2017

BUY: Parkson Credit still optimistic about motorcycle financing

http://www.theedgemarkets.com/article/parkson-credit-still-optimistic-about-motorcycle-financing-A+A
http://www.theedgemarkets.com/article/parkson-credit-still-optimistic-about-motorcycle-financing
KUALA LUMPUR: The investing fraternity is getting disappointed with Parkson Holdings Bhd’s retail business, particularly its operations in China which was once perceived as a cash cow.
However, few may have noticed that the retail group has commenced its credit services business. And that the new operation is already churning good growth, although the contribution to Parkson Holdings’ bottom line is not significant as yet.
According to senior general manager Danny Poh Wan Chung, who is at the helm of Parkson Credit, with an initial paid-up capital of RM30 million from Parkson Holdings, Parkson Credit has breached the RM1 million mark for profit after tax (PAT) for the financial year ended June 30, 2016 (FY16).
“Personally, I have a very ambitious target for this company, in terms of profit. I'm quite satisfied [with the performance so far]. It is within my mark, and we are aiming to benchmark it with the industry in terms of profit margins against the industry best,” Poh told The Edge Financial Daily.
For FY16, the company achieved PAT of RM1.02 million compared with a net loss after tax of RM31,296 in FY15. Meanwhile, its revenue swelled close to 12 times to RM13.06 million compared with RM1.11 million a year ago.
“For FY17, we are expecting to achieve a high multiplied growth in both revenue and net profit,” said Poh, noting that the main driver for PAT growth is the economics of scale that Parkson Credit will enjoy as its business expands.
“Being fairly new [and for the immediate future], Parkson Credit is not contributing much in revenue to Parkson Holdings, however, we expect to be a significant profit-contributing company [to the group later]” Poh added.
In 2013, Parkson Holdings chairman Tan Sri William Cheng, who is also the managing director, came out with the idea of restarting Lion Group’s financial service business in the retail group.
Poh then set up this wholly-owned unit, Parkson Credit. Within one year, Poh had it up and running.
Motorcycle financing is the main area that Parkson Credit is focussing on currently. It generates about 95% of the company’s sales.
In view of the wide profit margin of over 20%, Poh reckons that Parkson Credit’s contribution will be more towards the group’s bottom line instead of revenue.
Commenting on non-performing loans (NPL), Poh said Parkson Credit’s bad debt recovery has improved last year compared with the initial year. However, he acknowledged that there is room for improvement as the company is still behind the industry’s best. With a NPL ratio of below 4%, Poh is expecting it to go down lower and to be comparable with the industry’s best of about 2.8%.
New motorcycle purchases dropped 14% after the introduction of the goods and services tax in 2015. Poh is expecting a single-digit drop this year as it did in 2016.
Poh said Parkson Credit was also formed to create synergy in order to support Parkson Holding’s current and future portfolio of consumer-focused business.
“Taking a look at other global retail industry players, notable organisations such as AEON and Wal-Mart are often associated with a credit financial services arm to supplement its retail business,” Poh said.
Given the rising cost of living and a weaker ringgit, which drives the demand for credit purchase, Poh said non-bank lenders are expected to continue to thrive in the near future bridging the gap of medium- and low-income eligible credit financing requirements.
“It is our intention to start out in the most competitive environment. By entering into an already competitive market, we are able to gauge capability to compete and thus gain competitive confidence in the market,” said Poh.
“With that, we are able to put our foothold in the market and establish ourselves as a key player in the industry in the near future. From there we can launch more financial services products in the near future,” Poh said.
Without relying heavily on marketing and promotions to drive sales, Poh said Parkson Credit is dependent on the recommendation from its motorcycle dealer network.
With the recent achievement of 100,000 applicants serving close to 540 dealer outlets, Parkson Credit is targeting to reach 1,000 dealer outlets by the end of 2019 and will be focusing on dealers within the capital states.
The company had obtained the moneylending licence early this year. “Hence, it is a matter of timing before we decide to roll it out into the market,” Poh said.
Poh added the company plans  to introduce a variety of financing products and services in the near future, which includes hire purchase, personal financing, insurance services, small and medium-sized enterprise financing and others.
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08 December 2016

Did YOU buy Parkson previously? Congrats to my clients who followed on 02/12







Technical Analysis

  1. Break out volume on 07/12/16, up from 0.123
  2. MACD indicates a buy indication
  3. Currently at 25 days moving average
  4. Short term target at 0.140 first. then 0.150

Fundamental Analysis

Please refer to my post on 02/12/16 HERE
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02 December 2016

60% UPSIDE to BUY Parkson Retail (O9E)

Sharing some information and personal views on Parkson Retail (O9E)

Based on the charts, unlikely there will be any immediate recovery. the downtrend has been quite rampant since the break of 0.150 and 0.140 mark. There are 2 ways to look at it:






1. for trading clients who are trying their luck at 0.150 or lower, there has to have a stop loss price level. This is to avoid huge paper loss if it were to fall even lower. But do note that no one knows where is the bottom price. if only life is that simple, we all will be able to buy at the lowest and sell at the highest. On hindsight, it seems not right to buy at 0.150 because it is now 0.120 (lowest as of now 0.118). but based on 1 year price history, 0.150 is a mark for rebound.  

For that, a way out would be to average down the current holding price. However, please note that averaging only works if the price goes up. If not, it will be simply just increasing trading losses when the price goes further south .

If averaging, one can consider picking some shares at strategic prices, such as 0.120, or 0.130 etc.


2. for clients who are still holding on (including myself for my personal trades), you can look at the fundamental and valuation of the company. In summary, there are 2 driving forces resulting in the massive drop in this counter. 

        a. Firstly Parkson Retail reports earnings in MYR (Malaysian Ringgit). With the current strong USD, MYR has been weakened significantly.  
        b. Retail business has been on the decline. 

                "...Same-store sales for Parkson Retail Group fell 9.7 percent in the first half, while for the Golden Eagle Retail Group the drop was 8.7 percent. Chinese shopping centre operator Intime Retail, which is backed by Alibaba, posted sales that fell 3.7 percent in the first nine months of the year." Taken fromhttp://www.scmp.com/business/markets/article/2044786/chinas-traditional-retail-industry-remain-weak-shoppers-stay-home

As such under such marco environment, it is both difficult and probably impossible for the price to recover to its former glory in short period of time, much less the 0.150 mark. 

But all is not lost.

This share is listed on 3th Nov 2011, with an offer price of 0.940. Of course, times have changed and this might not be an accurate measurement of the current valuation of shares.



Parkson Retail and Group are currently listed in KLSE, SGX and HKSE. The recent analyst report (30th Nov) of Parkson Retail 5657.KL from MorningStar gives a fair value of 0.84 sens. With 0.84sens as an indicative fair value, converting sens to cents that is currency conversion MYR to SGD respectively, it comes to about 0.28cents fair value. (0.84/3 = 0.28)

 Personally, I will take it at 0.200cents conservatively due to SGX trading mechanism. The price at 0.200 increases differently after the 0.200 mark. That is to say 0.199, 0.200, 0.205, 0.210. For traders who have bought at 0.199 will naturally sell at 0.205 for a gain of 6 pips, which translates to a stagnant of price around the 0.200 before the next decisive move.




In terms of managing and operating, the group has been actively managing its outlets, closing down the unprofitable outlets with stringent cost control measures. By closing down the unprofitable outlets, it helps to reduce costs and losses, which is only logical to do so.  

 Lastly, from the AGM report, the management is currently deploying experimental shopping experience and organising events in hopes to draw more retail crowds to the malls. Not to mention, the group has free online shopping to buy products from their website with no delivery costs.

 I took a few screenshots and attached the document for reference. For my friends who have the shares already, if you have spare cash, consider averaging down at a preferred price. 

 And for the rest who are still not keen in Parkson and are looking to buy into retail business sector, certainly, there are other considerations such as BHG holdings, captialmall trust etc. Each has its merits and shortcomings.

 Sharing my personal views, compiling it for all. Feel free to share and discuss if I missed out anything.

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04 November 2016

Possible privatisation for Parkson Retail?

Personally, I find Super group has not much meat left. Also please note it is Voluntary Conditional General Offer, which translates to not necessary 100%.

on the note, the possible privatisations of Super and GLP have lead to speculations on other similar counters such as dyna mac and kris energy.

My personal trades:

  1. to buy and hold Parkson Retail, anything below 155 is a good price based on historical movements. Forgot to add Parkson is 70+% ownership family owned. Possible privatisation?(refer to the chart)
  2. still waiting on Comfort delgro
  3. sold GLP yesterday.
  4. was watching M1 and Best world, but seems that quite a fair bit of sellers these days.

my 2 cents.






Details: https://research.uobkayhian.com/content_download.jsp?id=33139&h=6c1e751ccd093d6fecc68ea485e32c99






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29 March 2016

Away for NS Reservist (OKH global, Parkson and Sinograndness)

The current market is quite muted. Investors and traders are mostly on the sidelines, if not profit taking, and in the meantime on the look out for major news before taking any positions. Fundamentally, market is still weak. On top of that, US will be having election and it's a question who is the next US president and his policies will be.

If you have been following my previous emails and have traded on OKH global, Parkson and Sinograndness, you should have some profits by now. Remember to close your positions and lock in the profits.

I will be away for National Service from 30/03 till 09/04. Should you need to place any trades, please call my office number and inform my colleagues of your trading account number.






Click on the link for details.

https://research.uobkayhian.com/content_download.jsp?id=33202&h=49e75662bca429cc0e0ee3597a1becce




This transmission has been issued by a member of the UOB Kay Hian Group for the information of the addressee only and should not be reproduced and/or distributed to any other person. Each page attached hereto must be read in conjunction with any disclaimer which forms part of it. Unless otherwise stated, this transmission is neither an offer nor the solicitation of an offer to sell or purchase any investment. Its comments are based on information obtained from sources believed to be reliable but UOB Kay Hian Group makes no representations and accepts no responsibility or liability as to its completeness or accuracy.
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22 March 2016

Buy Parkson Retail Asia (PRA SP): Takeaways From Meeting With Management

As mentioned previously before this publication, this is a counter for investing, a classical case of market capitulation.








Click on the link for details.

https://research.uobkayhian.com/content_download.jsp?id=33139&h=6c1e751ccd093d6fecc68ea485e32c99


This transmission has been issued by a member of the UOB Kay Hian Group for the information of the addressee only and should not be reproduced and/or distributed to any other person. Each page attached hereto must be read in conjunction with any disclaimer which forms part of it. Unless otherwise stated, this transmission is neither an offer nor the solicitation of an offer to sell or purchase any investment. Its comments are based on information obtained from sources believed to be reliable but UOB Kay Hian Group makes no representations and accepts no responsibility or liability as to its completeness or accuracy.
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21 March 2016

Parkson Retail for Investing (More details in next post)

As mentioned on last Tues on the 3 counters,

Sinograndness,
Japfa

Both the counters are up about 10%. Please remember to take profits.

Currently watching Parkson Retail for investing.

My 2 cents.





Click on the link for details.

https://research.uobkayhian.com/content_download.jsp?id=33081&h=b332a82250148d72658717f3d3d135f7


This transmission has been issued by a member of the UOB Kay Hian Group for the information of the addressee only and should not be reproduced and/or distributed to any other person. Each page attached hereto must be read in conjunction with any disclaimer which forms part of it. Unless otherwise stated, this transmission is neither an offer nor the solicitation of an offer to sell or purchase any investment. Its comments are based on information obtained from sources believed to be reliable but UOB Kay Hian Group makes no representations and accepts no responsibility or liability as to its completeness or accuracy.
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