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Brokerage: Parkson to expand further in Asia
by hlk Sun 03 Jul 2011, 22:01
PETALING JAYA: Parkson Holdings Bhd aims to turn its Indonesian retail operations into a key income driver within the next few years, said HwangDBS Vickers Research in a report yesterday.
Parkson Holdings plans to expand its retail network in Indonesia from six outlets presently to between 20 and 25 by 2015.
The research house said Parkson Holdings would implement cost-savings measures in its Indonesian operations by leveraging on the group’s bargaining power to purchase cheaper merchandise and implement more effective marketing activities as well as reducing staff redundancies.
The group will also open about 20 new outlets within the next two years in China, Malaysia, Vietnam and Cambodia to establish 128 outlets. About 16 of the new outlets will be in China.
The report noted that the group’s wholly-owned subsidiary Parkson Retail Asia Pte Ltd (Parkson Asia) might seek a listing in Singapore.
Parkson Asia houses the group’s retail operations in Malaysia, Indonesia, Vietnam and Cambodia.
“This (potential listing) makes investment sense as it would enable the group to build up its cash reserves and seek a new valuation yardstick for Parkson Asia since the market is currently attaching zero value to its retail business outside China.
The operations in China, parked under the Hong Kong-listed and 51.5%-owned subsidiary Parkson Retail Group, contributes about 75% to group earnings,” said the report.
In its sum-of-parts valuation, HwangDBS Vickers Research has given a fair value of RM2bil to the group’s 90.1% stake in Parkson Asia.
Parkson Holdings plans to expand its retail network in Indonesia from six outlets presently to between 20 and 25 by 2015.
The research house said Parkson Holdings would implement cost-savings measures in its Indonesian operations by leveraging on the group’s bargaining power to purchase cheaper merchandise and implement more effective marketing activities as well as reducing staff redundancies.
The group will also open about 20 new outlets within the next two years in China, Malaysia, Vietnam and Cambodia to establish 128 outlets. About 16 of the new outlets will be in China.
The report noted that the group’s wholly-owned subsidiary Parkson Retail Asia Pte Ltd (Parkson Asia) might seek a listing in Singapore.
Parkson Asia houses the group’s retail operations in Malaysia, Indonesia, Vietnam and Cambodia.
“This (potential listing) makes investment sense as it would enable the group to build up its cash reserves and seek a new valuation yardstick for Parkson Asia since the market is currently attaching zero value to its retail business outside China.
The operations in China, parked under the Hong Kong-listed and 51.5%-owned subsidiary Parkson Retail Group, contributes about 75% to group earnings,” said the report.
In its sum-of-parts valuation, HwangDBS Vickers Research has given a fair value of RM2bil to the group’s 90.1% stake in Parkson Asia.
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