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like weather forecast.
reviving discussion on this. heard many maintain " buy" call but it's been dropping. any views?
Courts Asia - More retail sales, less credit
Target S$1.41 (Long Term: Out Perform)
Courts broke down for the first time operating profits by country in its FY13 results, with Singapore more profitable than we thought. We are now more certain that its earnings growth will be led by Singapore's housing boom rather than Malaysia's faster retail-space expansion. We cut our FY14-15 EPS by 4-6% for higher interest expense from recently issued bonds, and introduce FY16 numbers. Maintain Outperform. Our residual income target price (8% cost of equity, 1% terminal growth) ticks up as we incorporate FY13 book value. Catalysts are expected from strong SSSG and faster-than-expected store expansion.
We cut our FY14-15 EPS by 4-6% for higher interest expense from recently issued bonds, and introduce FY16 numbers. Maintain Outperform. Our residual income target price (8% cost of equity, 1% terminal growth) ticks up as we incorporate FY13 book value. Catalysts are expected from strong SSSG and faster-than-expected store expansion.
Singapore is way more profitable than Malaysia
We are now more certain that it will be Singapore, rather than Malaysia, that will power its earnings growth in the next two years. Singapore's FY13 operating profit (S$42m) was more than twice Malaysia's (S$19m), at 69% of group operating profit. This exceeded our previous estimate of 55-65%. The above may seem counter-intuitive given the greater prevalence of credit sales in Malaysia but Singapore's more efficient logistics infrastructure seems to have won out. Because of the higher absolute profits in Singapore, the impact on the bottom line from faster SSSG led by a housing boom should outweigh rapid retail-space expansion in Malaysia. FY13 SSSG was 8.2% in Singapore, compared with just 6.3% (local currency) in Malaysia.
Full effects of housing boom not yet felt
We think there is a good chance that SSSG in Singapore could spike above 10% because the number of housing units is set to rise dramatically. About 30,000 units are due for completion in 2013, before rising to 50,000-63,000 annually in FY14-16.
Valuations
Courts trades at just 12x CY14 P/E while our residual income valuation implies 17x CY14 P/E. Net gearing was 0.47x at end-FY13 but could tick up to about 0.86x if all the cash raised from fixed-rate notes is used to extend loans.
Source: CIMB Daybreak - 12 June 2013
...Last Done: $0.945...
im now going for ttee land ipo
...Married Deal: Vol: 67 Value: $71,020 ie $1.06/share Prev Close: $1.08....
Hey pcscorpio,
so now u sld court, what u buy? today.
pcscorpio ( Date: 30-May-2013 18:16) Posted:
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thanks kelvin! u too
smart guy, I sold cheaply at 106, and buy into Amplefield.
wish u good luck,
pcscorpio ( Date: 29-May-2013 11:10) Posted:
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Stronger FY2014 sales growth expected
What is the news?
Courts’ 4Q13 earnings of S$12.6 million was marginally above our expectations on lower expenses. Sales registered in Singapore were weaker than expected, while expenses were well managed. Underlying service charges from the in-house credit facilities grew strongly at 25.3% y-y to S$32.5 million. Total earned service charge was however lower y-y due to movements related to the accounting recognition of service charges. Proposed dividend of 1.01 cents, representing a 30% payout ratio of 2H13 net profit, was also announced.
How do we view this?
While 4Q13’s sales were below expectations, we continue to expect stronger sales growth in FY2014. This is expected to be driven both by higher sales of goods, and earned service charges. The opening of new stores in Singapore (2 stores), and Malaysia (6 stores + 1 megastore) in FY2014 is expected to drive this increase. Overall credit quality in Singapore and Malaysia remains benign, while credit sales are expected to remain strong.
Investment Actions
We adjust our forecast to include 4Q13’s results. Based on our DCF valuation, assuming WACC of 7.1%, and terminal growth (g) of 3.0%, we maintain our target price of S$1.14. We continue to view the expansion into Indonesia positively, while the higher expected sales growth and good cost management is expected to drive net profits. We therefore maintain our “Buy” rating.
PhillipCapital Research - 30 May 2013 ...Last Done: $1.045...
lucky i clear at $1.14
congrats kelvin! ultimate value investor
kelvinLim123 ( Date: 23-May-2013 03:23) Posted:
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I bought end of last year, then buy again in March, sitting on good profit.
good luck.
pcscorpio ( Date: 20-May-2013 15:45) Posted:
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I check previously was 22/5 , then now it is 30/5.
never mind, a little late is better, let people speculate higher, if out too soon, then it will be sell on news.
good luck
pcscorpio ( Date: 22-May-2013 22:03) Posted:
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results out already?
bought at a dollar! WHOOOOOS. GOOD LUCK EVERYBODY. courts 3 quaters already beat last year result
This one will report very good result, on 22/5. hope it give good div as well.
hope all bought this.
courts rally
Oh! No! you have make me feel uneasy this way. This is a free junc. you have the right to make comments freely. Take it easy! I m ok else I would have rebutted.
I think CourtsA will be releasing their FY 13 result in the coming week. Keep a lookout. Hope it meets estimates.
I think CourtsA will be releasing their FY 13 result in the coming week. Keep a lookout. Hope it meets estimates.
I am sorry, shd not be rude, u have every right to be here, my apology.
but courtAsia , if i see the going, another 2 to 3 session it will soar, just keep a lookout.
today u can see inst, are accumulating. but this may be slow. Kreuz or halcyon,
blueberry ( Date: 08-May-2013 08:08) Posted:
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Sure. Get lost, no problem since we have different frequencies. But, I enjoy reading your comments, esp the comments your made on s-chip.
Very good advise !! Avoid !!
Very good advise !! Avoid !!
kelvinLim123 ( Date: 08-May-2013 00:47) Posted:
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