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Another phenomenal set of results by Challenger. When all the world is worried about an imploding US and Europe, and an overheating China and India, isn't it nice to know that a home grown star like Challenger exists. What's not to like in the first half results: Sales up 52%, net income up 34%, net cash on the balance sheet, and more stores planned. Oh, and a 5% dividend on the H1 results, which should translate into a 10% dividend for the full year. PE well less than 10x. Up you go, you beauty.
Challenger saw-toothing higher over the last month. It's now a race between Epicentre and Challenger as to which will reach a dollar first. Why?
1. Everyone is going to buy a tablet this year, stimulated by the new iPad2. 3-D Wii will also stimulate a new upgrade cycle for all gaming. And the ongoing convergence of all media will drive additional sales of TVs, large screen computers, sound systems, etc.
2. Both companies have opened new stores in Singapore and Malaysia (and Epicentre in China).
3. More tourists and more PRs/EP holders means more retail spending.
4. Valuations still too cheap. Epi on 6x and Challenger on 10x 2011 earnings.
Assuming that both should be on OSIMs 17x, we have 100c stocks.
today down so much...why ah? good time to buy?
And because of the 1 for 2 bonus issue, the final dividend goes up 40% as well.
Solid set of results, but looking under the lid, even better. For the year, sales were up 26%, and net income up 24%. But breaking it down into second half vs first half: First half sales were up 12%, while second half sales were up 38%. First half net income fell 4% while second half net income rose 57%. With two new stores opening in Singapore in Q2 2011, and two new stores in Malaysia also opening in Q2, there is plenty of growth yet to come. Cash on the balance sheet rose from 19mn to 36mn.
Another great company (see Epicentre) that is finally seeing some price action (up 5.5c today). Anyone who is breathing in Singapore will know their iconic and ever better store in the Funan Centre, and their aggressive expansion into the heartland (22 stores and counting). Their stores are packed, and for many it is the default destination for all things IT. Stock achieved 12% revenue growth, but a 6% fall in H1 2010 earnings due to an FX loss. Assuming they do better in H2 with Christmas, EPS should be 5.5c, so stock is still trading on less than 10x PE. They paid interim dividend of 1.2c. Last year they paid a final of 1.3c. Assuming the same, the stock will yield 5%. Company still growing stores, and has net cash on balance sheet.
the volume of this counter is very low, if you look at the history of this counter, often the owner buy the share themselve and the trading volume is very low. Most of the announcement in sgx is by the ceo, look like they do not have senior management or company secretary to make announcement. If the ceo spend time in announcement, then his time spend to chase business will be affected,
Must be doing reasonably well. I just saw a brand new outlet at the Hougang Mall.
hi, so far during this fall period, it still can survive...wat an amazing grace....
will it begin to pick up n go to the top again?
wonder.........
How is this company doing in terms of its business?
Good div yield for 2006 but is it year to year? My criteria for good div yield has to be year to year consistently e.g. M1, SINGPOST ...
Holding on well despite mkt's pull back. Good div yield.