Singapore Stock Market News

Parkson Retail Asia - Growth, interrupted

StockFanatic
Publish date: Fri, 09 Nov 2012, 09:50 AM
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Malaysia and Indonesia SSSG were slightly softer than expected, but Vietnam was significantly worse, while overall expenses were high. FY13 guidance is reduced but we will stay invested as regional expansion continues with its first Myanmar store opening by Apr 2013.

1Q EPS came in below expectations at 21% of our and 20% of consensus' FY13 forecasts. We reduce our FY13-15 EPS estimates by 10-11% to reflect weaknesses in Vietnam which are proving deeper than expected. Maintain Outperform and price target, however, as we roll forward to CY14 EPS assuming 19x P/E (vs. prior 20x), within the historical average range.
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