Parkson has never done pp before and perhaps it may buy some time. Current liabilities > current assets based on Q2’21 report. Depending on pp price and it’s ability to negotiate the terms for the current loans and borrowings, it may provide the working capitals needed.

Sounds good. Let’s observe what transpires in the coming months - Vietnam arbitration, pp price and construction JV. Internally, more aggressive plans put in place to close non performing outlets now instead of focusing on numbers in the past like numbers of stores and SSS. Challenging situations and we just have to be mindful of the downside risk. After all, it’s hard earned money that we are investing.

Many outlet but losing money ^^ they try to do more outlet to grow but fail ^^ cause some outlet in mall that is not active ^^ Wait n see their China plan ^^ the boss is cash cow king just need to wait for it the management to go all in ^^

Hi Eng Hock, it has moved up quiet a bit and you may need to manage the risk accordingly. I can share my opinions but you have to make your own decisions. You will need to understand what you are getting into. (1) There was a qualified opinion on material uncertainties as a going concern for Parkson issued by auditor due to current liabilities more than current assets (2) there are 3 criteria for PN17 and one of it is auditor’s highlight which automatically put Parkson into the risk of PN17. However, there is the bursa relief measures during covid and Parkson have one year to work on it. Next review is FY2021 which is approximately two quarters from now / a year from last year. (3) There’s two corporate announcements recently (a) private placement (b) resale of treasury stocks. In my opinions, it seems to me that the mgmt is trying hard to balance the business needs and preventing diluting shareholders values. Pp provides working capital needed and resale of treasury stocks will increase equity/cash in balance sheet. Looking at the figures in 2020 Annual Report Balance Sheet and recent quarter balance sheet, the numbers generated from private placement and resale of treasury stocks seems to be sufficient, provided no surprises from the current on going litigations. If you intend to buy, it’s good to monitor closely the financials / corporate announcements. You can extract the numbers from its balance sheet and keep track of it. These are just my opinions, could be wrong. Hope it helps.

Balance sheet can at any time be resurrected ^^ depends on who is behind the chair wheeling it ^^ for me I know parkson is a goodwill brand that is difficult to throw dispose just like that ^^ any business will have difficulty n it depends on how good they manage it that makes it worth investing ^^

Morning Eng Hock. Sufficient meaning on paper seems to be ok for as long as there is no surprises from on going litigations. Current liabilities based on 2020 annual report is $2.67b, current assets is $2.33b, equity $1.63b and debt $1.94b. Resale of treasury stocks resulting in $0.8b will increase equity and current assets in balance sheet making it sufficiently meeting requirements. Pp is to provide working capital needed while maintaining its current cash/cash equivalent in current assets. Just my opinions, could be wrong. Hope it helps with your research.