Notes taken as i read the AR. Three months Ended 31 Dec 2014 QvQ Comparison
Local Stores are pretty numerous now and oversea expansion did not work well. I do not have the indication that we will see quick result from new activities nor do i expects significant impact for the next few Qs. While staff cost at the mean time can by curtailed, the malls rental cost cannot.
Decided to sell and monitor for the time being. I hope to be back.
- Revenue : 11% gains. 400k more profit than 2013. A nice 1.43 cents EPS from 1.32 on the backdrop of lower YoY. Do note that the full year revenue reduction actually comes from both Singapore and Malaysia geographical segments. A nice surprise that this Q beats prior year.
- Rental : Increased about 500K. A major cost on profitability.
- Operation: Stable inventory level and operation cash flow. Some capex investment noticeable.
- Management: Propose dividend of 1.25 cents. There's indication management is well grasp of the business climate and trying to innovate.
At 46 cents price level, that's more than 9% earning. Based on 2.35 cent full year dividends, 5.1% dividend yield.
Local Stores are pretty numerous now and oversea expansion did not work well. I do not have the indication that we will see quick result from new activities nor do i expects significant impact for the next few Qs. While staff cost at the mean time can by curtailed, the malls rental cost cannot.
Decided to sell and monitor for the time being. I hope to be back.
Cory
23rd Feb'15
A very good snapshot of the analysis, I am still keeping this counter in my watchlist ;-)
ReplyDeleteToo much challenge from e-commerce while brick-mortar is also squeezed by relentless rental and manpower cost increases. Not a long-term buy unless business model changes to something else that works well in the future.
ReplyDeleteMe too Richard. i hope they succeed and i have a counter more to invest
ReplyDeleteHey Anonymous, yes we like to invest in one that can hold for long.
ReplyDelete