PARKSON (5657) : MIDF Research upgrades Parkson to Neutral, trims target price to RM2.44
KUALA LUMPUR (Nov 25): MIDF Research has upgraded Parkson Holdings Bhd to Neutral (from Sell) with a revised price of RM2.44 (from RM2.51) and said Parkson’s 1QFY15 revenue expanded by a marginal 2.1% year-on-year (y-o-y), but its operating profit shrunk by 40% y-o-y to RM42.3 million.
In a note Tuesday, MIDF Research said Parkson’s PATAMI declined by 34.2% y-o-y to RM20.2 million, attributed to weak overall performance especially from China’s operation.
The research house said group operating margin declined by 40%, partly due to the losses on new stores and weaker sales growth.
“Parkson’s share price had fallen substantially by around 25% since our last Sell call on August 2014.
“Hence upgrade to Neutral from Sell with a revised target price of RM2.44 as we believe the current share price is reflective of its fair valuation,” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Nov 25): MIDF Research has upgraded Parkson Holdings Bhd to Neutral (from Sell) with a revised price of RM2.44 (from RM2.51) and said Parkson’s 1QFY15 revenue expanded by a marginal 2.1% year-on-year (y-o-y), but its operating profit shrunk by 40% y-o-y to RM42.3 million.
In a note Tuesday, MIDF Research said Parkson’s PATAMI declined by 34.2% y-o-y to RM20.2 million, attributed to weak overall performance especially from China’s operation.
The research house said group operating margin declined by 40%, partly due to the losses on new stores and weaker sales growth.
“Parkson’s share price had fallen substantially by around 25% since our last Sell call on August 2014.
“Hence upgrade to Neutral from Sell with a revised target price of RM2.44 as we believe the current share price is reflective of its fair valuation,” it said.
http://www.theedgemarkets.com
