Analyst Research Report Snapshot

Title:

Flash Note – Parkson (REDUCE, maintain) - PRG FY12: Within our expectation but below consensus

Price:

$23.00

Provider:

Affin Investment Bank

Date:

24 Feb 2013

Pages:

3

Type:

AcrobatPDF

Companies referenced:

PRKN.KL

Available for Immediate Download
Summary:

PRG’s FY12 core net profit plunged 24% to RMB850.8m Last Friday, Parkson Holding’s (PHB) 51.5%-owned unit Parkson Retail Group (PRG) reported its FY12 financial results. Gross sales proceeds (GSP) and revenue grew by +4.8% and +4.2% yoy to RMB17.2bn and RMB4.5bn respectively, driven by +4.7% increase in consessionaire sales and +4.4% growth in total merchandise and direct sales. Notwithstanding the healthy growth in PRG’s GSP and revenue, FY12’s same-store-sales (SSS) growth of +0.4% was unexciting and is below management’s earlier guidance of +2% growth. We attribute this to the weaker consumer sentiment in China and hence on discretionary spending coupled with the stiffer-than-expected competition faced by PRG. Taken together with the overall increase in: 1) operating expenses (yoy: +12.4%), 2) staff cost (yoy: +28.5%) and 3) rental expenses (yoy: +34.8%), PRG’s EBIT margin contracted sharply by -10%-points to 24.7%. Consequently, PRG’s FY12 core net profit fell by -24% to RMB850.8m. Results were within our expectation but below street’s estimates, accounting for 96% of our and only 79% of street’s full year projections.

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.