Tuesday, 16 November 2010

OSK Research maintains Buy on Parkson, TP RM6.64

OSK Research maintains Buy on Parkson, TP RM6.64
Written by The Edge FinancialDaily
Tuesday, 16 November 2010 08:33

KUALA LUMPUR: OSK Research is maintaining its Buy call and target price of RM6.64 for PARKSON HOLDINGS BHD [].

Parkson reported a 1QFY11 revenue of RM656.5 million (+2.3% y-o-y) and net profit of RM76.2 million (+17.7% y-o-y). If not for the stronger RM against RMB and VND, net profit would have surged 28.4% y-o-y.

OSK Research said on Tuesday, Nov 16 the robust numbers were attributed to the impressive same store sales growth in all the countries under its umbrella, as well as new openings. Despite the higher expenses incurred for new openings, commission rates, direct sales and EBITDA margins were flat y-o-y.

“As the results were within our forecast, we maintain our FY11 and FY12 earnings estimates at RM373.6m and RM444.3m. Parkson has declared a 10 sen tax exempt dividend per share. Maintain BUY,” it said.

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