Wednesday, May 28, 2008

Parkson Holding Berhad - Q1 '08 Review

Don't be surprised by the big jump in Q1 '08. RM 231 mln was from dilution of retail operations. Excluding this item, EPS came in RM 0.125/share, be careful not to annualized Q1 '08 which is typically a high season due to Chinese New Year. This still represent almost 38% growth. I would think PE will drop to less than 20 times for 2008. Balance sheet is solid with net cash position.

I supposed some of the investors in Hong Kong are slightly disappointed with Parkson Retail Group as the EPS growth was around 40%, fell short of the market's expectations. Many of them has a target price around HK $70/share. That could be the reasons of selling pressures of Parkson Holding Berhad in the last few days, affected by bearish moods of Parkson Retail Group. At RM $ 6.50, Parkson Holding Berhad is selling at 40% discount. The time is ripe to buy.

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