Tuesday, 28 May 2013

Fong Siling: Parkson! ? Buy on downturn?

PHB’s 3QFY13 revenue increased 0.3% QoQ to RM932.8m (+1.6% YoY) coupled with improved earnings from RM74.2m to RM76.9m QoQ but declined -24.9% YoY. Historically the highest contributing quarter, PHB’s YTD results have not met our estimates. In the near-term we continue to see its earnings to be dragged down by China’s underperformance. We are downgrading our recommendation to Neutral with a rolled-over TP of RM4.17 based on our FY14F estimates. In our recent management meeting we do believe the group is taking the necessary measures to revive its China performance through i.) scaling back on store openings, ii.) focus on improving current stores and iii.) expand to 2nd and 3rd tier cities that have limited competition.
3QFY13 results. PHB’s revenue improved marginally YoY (+1.6%) due to new stores’ contribution combined with its current operations. We assume in the near-term as Parkson Retail Group (China – 71% revenue contribution to PHB) experiences weaker demand (+1% YoY) coupled with rising costs mainly from higher rental expenses (+31% YoY) and staff costs (+25% YoY), the recovery could be slower than expected.
Same-store-sales growth (SSSG). 3QFY13 SSSG growth for Malaysia (+8.6%), Indonesia (+1.2%), China (-2%) and Vietnam (+9.9%) continue to be affected by weaker consumption coupled with respective country factors. For Malaysia and Vietnam, the reported quarter benefited from festivities due to the shift in sales to 18 days later (FY13) of the Chinese Lunar New Year and Tet calendars compared to FY12. The lower than expected SSSG for Indonesia was attributed to lower sales of the Plaza Semanggi, Jakarta store from nearby competition which we understand is a short-term impact. Management aims to improve SSSG through i.) targeted promotional activities including improved productivity of floor space, ii.) refurbish and upgrade existing stores and brands, iii.) improve operating efficiency via cost rationalization and iv.) Merger and acquisition opportunities for retail and/or property.

This is the comment from most of the financial analysts recently. They suggested for "HOLD" and "SELL" call for Parkson.

But, What Master Fong Siling sees is different!

  • Downturn is always the best time to catch the share at discounted price!
  • EPS drops to 29 cents , but PE around 11 for BIG BLUE CAP! it is relatively cheap compare to other blue chip!
  • Strong brand!
  • Currently on expansion mode to expand business in  CHINA, S.E.A ( foresee long term EPS to return soon! ) 
  • Heavy share buy back by company!
  • At current year low of RM 3.8! it is definitely a GEm!

Thursday, 23 May 2013

Fong Siling : Tecnic

Reasons for TECNIC:

  1. Cash of RM 40 Million ( cash rich, debt free company)
  2. EPS: 43 cents and PE of 7!!! normally distributing 50% of annual net income as dividends paid to shareholders, dividend 25 cents last year. 
  3. Due to capex and expansion this year, Tecnic is giving 5 cents dividend for this year!. Next year should be boom again!
  4. Currently almost at year low!
  5. NTA RM 2.5! 

Year low! Let's chase it before it sky rocket! 

Friday, 17 May 2013

Fong Siling: Amedia Revisit!

Looks like after the recent rally , some Fund Managers start to collect Amedia again. You can clearly see two green bar pushing the volume and price higher. With the volume almost stabilize, looks like it is going to break through the resistance at RM 0.18.

Keep finger cross, it will move and break RM 0.20! 

By the way, don't forget the solid fundamental of this company!

Thursday, 16 May 2013

May Rally

Recently, after BN had won the election, the market seems to kick start its bull rally.

  • Success: Hit year high RM 1.31 , Coming Dividen of 6 cents!
  • Cscstel: Hit year high RM 1.45, Coming Dividen of 7 Cents! also reported increase EPS > 200% to 4 cents ++
  • Opcom: Hit high of RM 0.81 , of course , if you know the Who is the CEO of the company!
  • Brem: Hit high of RM 1.25, this is really an undervalue stock which good dividen yeild! 
  • ECS:  hit high of RM 1.25! this company is a gem! It gets most of the distribution business for smart phones!
  • MSC: start it new Q with positive EPS!!!!

Well done! Let's Rock!