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TOP POTENTIAL PENNY FOR JULY 2020
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guoyanyunyan
Supreme |
15-Aug-2013 10:12
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How Courts Asia's expansion in Malaysia, Singapore could lead to short-term dragHere are 3 risks. According to Phillip Securities Research, while expansion is expected to increase sales volumes and net profits in the medium to long term, Courts continues to face short term earnings drag. " We note a short term drag on net profit as newly opened stores in Malaysia takes time to gain traction in terms of sales volume," says Phillip Securities Research. In Singapore, meanwhile, Courts also plans to open its new store in West Gate Mall by end-2013," Here's more: First, newly opened stores in Malaysia take some time to gain traction as customers are slower to warm up to stores. Second, there is a short term increase in interest expense as management effectively utilizes proceeds from the recent S$125m bond issuance. Third, efficiencies are likely to be lower for new stores due to higher percentage of new staff relative to mature stores. This is especially so given the higher dependence on staff to increase credit sales, and lower credit cost. This is through experience in picking out credit customers that are more likely to default via tell-tale signs, such as their actions. |
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guoyanyunyan
Supreme |
08-Aug-2013 21:11
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Courts Asia secures Malaysian sites for second big-box Megastore, Sabah stores Country retail footprint to increase by 17%. Courts Asia announced that it has identified the site of its second " Big-Box‟ Megastore in Klang Valley, Kuala Lumpur and at the same time secured two new sites in Sabah, East Malaysia. This completes the Group‟ s nationwide retail coverage in Malaysia. The upcoming store in Subang Jaya, Klang Valley, will be the Group‟ s second largest store in Malaysia. This follows in quick succession to the grand opening of its first 108,000 sq. ft. „Big- Box‟ Megastore in Sri Damansara, Klang Valley, on 20 July 2013. Subang Jaya is a buzzing commercial and residential hub in the Klang Valley. Scheduled to open by December 2013, the 66,000 sq. ft. single-storey Subang Megastore will offer consumers one of the largest ranges of electrical, IT and furniture products in Malaysia, as well as signature innovative retail concepts that Courts is renowned for. Located next to the flagship stores of both Mydin and Giant, it will serve an immediate population of more than 700,000 and a wider Kuala Lumpur population of 1.6 million. Additionally, the Subang Megastore will feature innovative retail concepts such as: Customer " experience zones‟ where customers can touch, feel, use and experience products before purchase Sleep Clinic, a concept which offers customers " expert advice‟ on choice of beds and bedding, and allows for customisation of mattresses Cool Zone, an in-store one-stop shop for air-conditioning needs Dr Digital, which provides customers with a comprehensive IT consultation service Sofa Maker that allows consumers to customise their sofas and a Market Hall dedicated to special promotions and exclusive offers. Courts Asia‟ s Executive Director and Group Chief Executive Officer, Mr Terence Donald O' Connor, said: “Securing the sites for two 'Big-Box' Megastores and two other sites in Sabah within a short period of each other is indicative of the team‟ s commitment in expanding our retail presence in Malaysia to full potential quickly. Notably, we are now present in all states in Malaysia, with good representation via our „Big-Box‟ megastores to serve the greater Kuala Lumpur area. “With the upside of the Subang store coming through, our store footprint in Malaysia within the financial year ending March 2014 is likely to end at 288,000 sq. ft., up from the estimate of 208,000 sq. ft. announced earlier. This is more than double of the 120,000 sq. ft. increase committed during our IPO. When open, the 'Big-Box' Megastore in Subang, and two upcoming stores in Sabah, together with the already open 'Big-Box' Megastore in Sri Damansara, will increase the store retail footprint in Malaysia by 17%. In Sabah, the larger of the two sites, at 16,043 sq. ft. will be located at Inanam Taipan, Kota Kinabalu, while the second site is 11,000 sq. ft. and located at Pavilion Bundusan, Kota Kinabalu. Both Inanam Taipan and Pavilion Bundusan are bustling commercial developments which are easily accessible and strategically located near residential areas. “Sabah, as the country‟ s third most populous state, is attractive, given its high population density and rapid urbanisation profile. We will continue to focus sharply on executing our growth strategy and identify opportunities to open a net increase of six smaller format stores by March 2014. Having a wider store network will mean that we will see greater scale of efficiencies and operating leverage come into play, thus putting us in a bigger position of strength,” added Mr O' Connor. The Subang Megastore and the two upcoming stores in Sabah are expected to contribute to the Group‟ s FYMar2014 financial results. |
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guoyanyunyan
Supreme |
22-Jul-2013 08:54
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...Married Deal: Vol: 250 Value: $233,750 ie $0.935/share Prev Close: $0.935... ...in correction phase... recent low: $0.885... |
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guoyanyunyan
Supreme |
19-Jul-2013 10:42
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UOB Kay Hian Mid-cap Highlight: Courts Asia CAL remains an attractive proxy for consumerism in Singapore and Malaysia. Its plan to venture into Indonesia in 2014 is on track. We see the recent correction as an opportunity to accumulate. BUY with a target price of S$1.20. Key Takeaways • Background on CAL. CAL is Singapore’s largest and Malaysia’s second-largest electrical, IT and furniture retailer in terms of 2011 total sales. The “Courts” brand is associated with quality products at affordable prices. Under the “Courts Flexi Schemes”, CAL operates a proprietary credit business, which allows customers to make purchases through credit accounts opened directly with CAL. In adition, CAL holds branding rights to operate in 16 other countries in Asia-Pacific. • First “big-box” megastore in Malaysia opened. CAL soft opened its largest store in Malaysia last 11 July, ahead of the original August target and in time for the start of the festive Hari Raya season. The official opening is scheduled for 20 July. This raises the total store count in Malaysia to 61 and total retail area to close to 960,000sf. Management intends to add another 100,000sf in FY14 through 5-6 stores. We are positive on the outlook for Malaysia’s retail sector, which is driven by a large middle-class segment. Retail Group Malaysia has upgraded their 2013 growth forecast for the retail industry from 6.0% to 6.4%. • Short-term impact from BNM’s credit tightening… Bank Negara Malaysia (BNM) recently announced measures to tighten household financing mainly by capping loan tenures, prohibiting pre-approved personal facilities and regulating non-bank financial institutions (NBFI). While CAL does not qualify as an NBFI, these measures could indirectly curtail CAL’s credit business as the government aims to control excessive household debt. Credit sales as a percentage of Malaysia’s total sales has trended down to 57% as at end-FY13. Management is comfortable with this current mix and revealed that this is in line with the company’s tightening credit policy to manage risk. We prefer the credit sales proportion to remain above 50% in Malaysia for CAL’s overall gross margin to remain above 30%. • …but long-term impact is positive. We think BNM’s new measures will complement CAL’s internal risk management in the medium/long term. CAL employs scorecard-based criteria when it conducts credit checks on its customers. Also, it engages external credit agencies such as DP Information in Singapore and Rating Agency Malaysia Credit Information to enhance its screening process. A stronger financial framework in Malaysia will institute more responsible lending and borrowing practices, which in effect will improve CAL’s credit risk profile. • Accelerated housing pipeline to support furniture sales in Singapore. According to MND, more than 30,000 residential units are expected to be completed this year and close to 200,000 until 2016. We expect this to support CAL’s furniture sales, which comprise close to 20% of total product sales. CAL has introduced innovative concepts to boost this product category, including Sleep Clinic and Sofa Maker. • Entering Jakarta in 2014. CAL is in advanced discussions with the developer of its first store in Indonesia. This will be CAL’s biggest store ever with a total retail area of almost 140,000sf. Its corporate office is now fully operational as management plans for successive store openings in Jakarta to gain economies of scale. The group did not provide a forecast for the sales per-square-foot for its store but using the average figures from other existing retailers (such as Lotte and Giant), management believes sales could average S$250psf (vs Malaysia’s ~S$200psf). The company has identified Indonesia as one of its key markets, along with Malaysia, in driving its revenue in the mid to long term given the growing middle class and fragmented retail market. Earnings/Risks • Seasonally weaker 1QFY14. The first quarter of CAL’s fiscal year is typically weaker due to the absence of festive holidays. 2QFY14 should generate stronger sales on the back of the Hari Raya season. We expect CAL’s FY14 revenue and earnings to grow 23% and 21% yoy respectively, driven by new store openings and higher sales per-squarefoot. On a three-year horizon, we forecast an earnings CAGR of 15%. • Key risks. In our view, key risks that could hinder CAL from hitting our earnings forecasts include: a) higher impairment losses in the event of rising consumer defaults, b) weakening consumer demand for CAL’s non-essential products, and c) narrower margins on lower credit sales. Valuation/Recommendation • Maintain BUY with a target price of S$1.20. We applied a peer average PE of 13.5x to our FY14F EPS estimate of 8.9 S cents. |
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guoyanyunyan
Supreme |
12-Jul-2013 11:34
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What's next to drive the markets and what should investors do in the current environment? UOB Kay Hian believe markets could grind sideways and end the year closer to 3,400 in 2H13. Given the limited upside, stock picking remains the key to outperforming. Our investment strategy would be to focus on a list of core blue chips with good earnings visibility and cashflow. Our key picks include DBS, Keppel Corp, Suntec, CapitaCommercial Trust, A-REIT, Bumitama, StarHub and CapitaLand. Investors with more aggressive risk appetite could also consider mid cap stocks such as Courts Asia, Triyards, Nam Cheong, Silverlake and Ying Li. ...Last Done: $0.935 ... recent low: $0.885... |
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pinksouffle
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28-Jun-2013 15:55
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any news on the dvd? | ||||
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alexkwa
Member |
27-Jun-2013 08:23
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I don't feel positive about this counter at this time. I'll be looking for a reversal at the 0.89 support... Great to hold for long term, but you'll get a better price in abit. | ||||
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john_ric
Supreme |
26-Jun-2013 16:21
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like weather forecast. | ||||
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pinksouffle
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26-Jun-2013 16:00
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reviving discussion on this. heard many maintain " buy" call but it's been dropping. any views? | ||||
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guoyanyunyan
Supreme |
14-Jun-2013 15:44
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Courts Asia - More retail sales, less credit Target S$1.41 (Long Term: Out Perform) Courts broke down for the first time operating profits by country in its FY13 results, with Singapore more profitable than we thought. We are now more certain that its earnings growth will be led by Singapore's housing boom rather than Malaysia's faster retail-space expansion. We cut our FY14-15 EPS by 4-6% for higher interest expense from recently issued bonds, and introduce FY16 numbers. Maintain Outperform. Our residual income target price (8% cost of equity, 1% terminal growth) ticks up as we incorporate FY13 book value. Catalysts are expected from strong SSSG and faster-than-expected store expansion. We cut our FY14-15 EPS by 4-6% for higher interest expense from recently issued bonds, and introduce FY16 numbers. Maintain Outperform. Our residual income target price (8% cost of equity, 1% terminal growth) ticks up as we incorporate FY13 book value. Catalysts are expected from strong SSSG and faster-than-expected store expansion. Singapore is way more profitable than Malaysia We are now more certain that it will be Singapore, rather than Malaysia, that will power its earnings growth in the next two years. Singapore's FY13 operating profit (S$42m) was more than twice Malaysia's (S$19m), at 69% of group operating profit. This exceeded our previous estimate of 55-65%. The above may seem counter-intuitive given the greater prevalence of credit sales in Malaysia but Singapore's more efficient logistics infrastructure seems to have won out. Because of the higher absolute profits in Singapore, the impact on the bottom line from faster SSSG led by a housing boom should outweigh rapid retail-space expansion in Malaysia. FY13 SSSG was 8.2% in Singapore, compared with just 6.3% (local currency) in Malaysia. Full effects of housing boom not yet felt We think there is a good chance that SSSG in Singapore could spike above 10% because the number of housing units is set to rise dramatically. About 30,000 units are due for completion in 2013, before rising to 50,000-63,000 annually in FY14-16. Valuations Courts trades at just 12x CY14 P/E while our residual income valuation implies 17x CY14 P/E. Net gearing was 0.47x at end-FY13 but could tick up to about 0.86x if all the cash raised from fixed-rate notes is used to extend loans. Source: CIMB Daybreak - 12 June 2013 ...Last Done: $0.945... |
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pcscorpio
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03-Jun-2013 10:19
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im now going for ttee land ipo | ||||
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guoyanyunyan
Supreme |
03-Jun-2013 08:40
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...Married Deal: Vol: 67 Value: $71,020 ie $1.06/share Prev Close: $1.08.... | ||||
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kelvinLim123
Master |
30-May-2013 19:34
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Hey pcscorpio, so now u sld court, what u buy? today.
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pcscorpio
Member |
30-May-2013 18:16
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thanks kelvin! u too | ||||
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kelvinLim123
Master |
30-May-2013 17:50
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smart guy, I sold cheaply at 106, and buy into Amplefield. wish u good luck,
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guoyanyunyan
Supreme |
30-May-2013 12:16
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Stronger FY2014 sales growth expectedWhat is the news?Courts’ 4Q13 earnings of S$12.6 million was marginally above our expectations on lower expenses. Sales registered in Singapore were weaker than expected, while expenses were well managed. Underlying service charges from the in-house credit facilities grew strongly at 25.3% y-y to S$32.5 million. Total earned service charge was however lower y-y due to movements related to the accounting recognition of service charges. Proposed dividend of 1.01 cents, representing a 30% payout ratio of 2H13 net profit, was also announced. How do we view this?While 4Q13’s sales were below expectations, we continue to expect stronger sales growth in FY2014. This is expected to be driven both by higher sales of goods, and earned service charges. The opening of new stores in Singapore (2 stores), and Malaysia (6 stores + 1 megastore) in FY2014 is expected to drive this increase. Overall credit quality in Singapore and Malaysia remains benign, while credit sales are expected to remain strong. Investment ActionsWe adjust our forecast to include 4Q13’s results. Based on our DCF valuation, assuming WACC of 7.1%, and terminal growth (g) of 3.0%, we maintain our target price of S$1.14. We continue to view the expansion into Indonesia positively, while the higher expected sales growth and good cost management is expected to drive net profits. We therefore maintain our “Buy” rating. PhillipCapital Research - 30 May 2013 ...Last Done: $1.045... |
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pcscorpio
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29-May-2013 11:10
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lucky i clear at $1.14 | ||||
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pcscorpio
Member |
23-May-2013 08:09
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congrats kelvin! ultimate value investor
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kelvinLim123
Master |
23-May-2013 03:23
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I bought end of last year, then buy again in March, sitting on good profit. good luck.
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kelvinLim123
Master |
23-May-2013 03:20
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I check previously was 22/5 , then now it is 30/5. never mind, a little late is better, let people speculate higher, if out too soon, then it will be sell on news. good luck
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