Sunday, November 8, 2009

Parkson.KL - Less speculative index stock but High Growth

TP: RM6.50

RNAV - 24x PE for its China operation, 12x PE for Malaysia operation and 10x PE for both Vietnam and excluded stores.

Why I Like Parkson?

1) Business Growth in China and Vietnam -> Next Asia Big Brother!

2) Strong Profit Margin.

3) Strong Net Earning - Currently, based on my financial statement analysis techique, strong net earning + low maintainance cost + low debt -> Super Profitable Business

4) EPS growing consistently.

5) Strengthening RMB against RM. -> RMB's actual rate is MYR/RMB=1. Please read more about The Ascent of Money about RMB. You will find the trick !

6) Currently, Parkson is very popular in China. According to some China Friends, "this is big retailing department store in every big city"

7) Cheng Family is big shareholder. Cheng will work very hard to make the business success. "Non-Family owned Business is not so good in Asia because CEO will not work hard if he just a High-Income Employee". High Flyer CEO can TALK COCK more than WORK.

Example :- A director with MBA (XXXX Company) - Learn How to Play tennis during office hours, Read Non-job related News, Send non-sense Email, Fuck Too Much Mid-nite then work @home.---->>>>>> WASTING SHAREHOLDER's MONEY!

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