United States

Analyst Research Report Snapshot


Company Update – Parkson (ADD, maintain) - Dragged by PRG’s China operations




Affin Hwang Investment Bank Bhd


24 Nov 2013





Companies referenced:


Available for Immediate Download

PRG’s 9M13 core net profit plunged -47% yoy Last week, Parkson Holdings’s (PHB) 51.5%-owned unit Parkson Retail Group (PRG) posted a disappointing set of 9MFY13 financial results. In tandem with the generally weak discretionary spending in China, same-store-sales (SSS) growth for PRG contracted -1.8%. Although revenue grew by a marginal +0.7% yoy to RMB3.8bn, PRG's 9MFY13 core net profit plunged by -47% yoy to RMB340m. We attribute this to: 1) the overall soft SSS growth which was offset by higher operating expenses (yoy: +13.5%); 2) stiffer-than-expected competition which had resulted in a -0.7%-point drop in merchandise margins to 17.9%; and 3) higher effective tax rate of 32% vs 9MFY12's 26.5%. Results were below both our and consensus expectations, accounting for only 51% and 53% of both our and street FY13 full year forecasts.

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.