Thursday, 30 August 2012

Parkson - Return on Retained Earnings

Year DPS EPS Retained EPS
2008 14.7 25 10.3
2009 5 25.1 20.1
2010 16 28.8 12.8
2011 15 31.9 16.9
Total 50.7 110.8 60.1
EPS increase (sen) 6.9
DPO 46%
Return on retained earnings  11%
(Figures are in sens)


Newbie said...

I don't think it is fair to calculate based on 2008-2011 results.
If the intention is to do an apple to apple comparison it should be from 2002-2011.

Supposedly from 2002 to 2007 the EPS is nearly 0.

Then the Return on retained earnings=
(31.9-0) /(60.1)= 53%!

This post is a bit misleading in my opinion.

Investbullbear Investbullbear said...

Parkson was previously ACB (Amalgated Containers). It has disposed off its other investments in 2007 and since then is an investment holding company withy stakes in Parkson Retail Asia (PRA, listed in Singapore Stock Exchange) and Parkson Retail Group (PRG, listed on the Hong Kong Stock Exchange). It also owns and manges KL Festival City Mall located in Setapak, KL.

I have used the results of 2008-2011, as these truly reflects the business that Parkson is now in.

The return on retained earnings has certain limitations. However, putting the results in this format, allows the intelligent investor to have another insight to the nature of the business and the investment potential of the company.