Parkson Holding Berhad

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Parkson revenue rising steadily over last eight quarters. Retailing business is seasonal - typically strongest in calender year festive seasons - end and begining of the year. Sales are typically the slowest during middle of the year. So, we need to be very careful not to annualize based on CY Q4 '08. All in all, the results came in within my expectations. DY is about 4.5% based on the quoted price of $ 3.30, selling roughly for 13X PE.

Profit from the operations has been stable and crawling upward slow and steady.

YoY revenue increase by 12% and net profit grew 19% (Q4 '08 133 min vs Q4 '07 112 mln) after adjusted the one-off gain 32 mln from the dilution of retail operations.

The biggest question is can Parkson increase/sustains its earnings due to the weaker consumer sentiments. The silver lining? They still plan to increase their China operations by opening 4 more stores(120,000 sq meter) in smaller cities in 2009, an increase total space of 16%.

Secondary concern is whether margin will be weakened by organizing more promotions or discounts to get people to spend.

When I was making comentary on Parkson Retail Group, I was saying it is a hold on the short term while it is a buy for those who have long term perspective. This is not a hedged opinion because it is really depend on individual choice. In the short term, the stock price might go side way for a period of time, those do not wish to tie up their money and has good skill of market timing may wish to hold and not buying till market sentiment to improve.

However, those really do not really wish to time their purchase with precision and don't mind the price action going sideway or even going down, it is a buy at anytime i.e. long term buy.

A buy is a buy no ifs, buts. When to buy is an individual choice especially during this environment.