Stock Pick Tips : Parkson Berhad - A value stock?

Parkson Holdings is principally involved in operating department stores in Malaysia, China and Vietnam. It holds a 51.6% stake in Hong Kong-listed Parkson Retail Group.


Expansion Plan 
Expansion plan. By FY13, the group plans to increase the gross floor area (GFA) in China by 279k sq ft. There will be 1 new store in Malaysia, 2 in Vietnam, 2 in Indonesia and 1 in Cambodia in FY13, which will add a total of 89k sq ft of GFA in Southeast Asia.


Valuation:-
Current P/E : 7.1
Dividend Yield : 4.56%
ROE : 15.58%


Comments
The current P/E ratio is something very interesting for us to take a look in this share. With a solid expansion plan, we expect a good dividend yield in coming years if they manage to deliver a successful business expansion.


Rate: Buy Below RM4.70
(Disclosure : Author has no position in Parkson Berhad)