We attach herewith an announcement made to The Stock Exchange of Hong Kong Limited ("HKEx") by Parkson Retail Group Limited ("Parkson Retail"), a 53.68% owned subsidiary of the Company listed on the HKEx, on 6 January 2008 pursuant to Rule 13.09(1) of the Rules Governing the Listing of Securities on the HKEx.
The Board of Directors of Parkson Retail having assessed the current available information, wishes to inform potential investors and shareholders of Parkson Retail that Parkson Retail Group is likely to record a lower Same Store Sales (“SSS”) growth of between 7% and 8% for the fourth quarter of the year 2008 due to i) the deferment of the new year holiday sale season for 2009 which commenced on 31 December 2008 (as compared to 2008 new year holiday sale season which commenced on 29 December 2007), the deferment is estimated to have affected the SSS for fourth quarter of the year 2008 by more than 2.5%; and ii) the continuing deterioration of the trading environment along the coastal region of the People’s Republic of China which has negatively affected the Group’s operations in the same region. The SSS growth for the year 2008 is likely to be approximately 12%.
Despite the lower SSS growth in the fourth quarter of the year 2008, the Parkson Retail Group’s overall profitability growth should remain healthy and the Board of Directors of Parkson Retail remains positive on the medium to long term growth prospect of the Parkson Retail Group.
This growth will cut by half. Projected EPS is likely in the range of RM 0.23 for 2008, assuming 7% growth, 2009 will be around RM 0.24. The intrisic value will grow at the satisfactory but sentiments will turn very sour. I expect the share price may retrace below RM 3.50, if the sentiments going even more negative, I am considering to pick up the share later.
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