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and also because of impairment. it affected last figure showed in the report of parkson. but the important thing is, we shuld know impairment doesnt affect the organic profit. which its business is really doing good. so once the true profit revealed, market will notice parkson is only pe 4 or 5 based on fiscal year 2023. so how much the real pe parkson worth. its very exciting to see especialy on 29 may after phb release its first quater result.
how to wake a undervalue stock?first , it must be reaally a under value stock based on earnings or asset.secondly it must have somethings to catch the eye of investor.
its either.
1) a superb qr result.
2) some big boss or media say it is undervalue.
3) privatisation
4) announce a very good dividend.
any one of this happen den will be like一支穿云箭，千军万马来相见. otherwise. it will continue sleeping
no doubt. parkson is kind of undervalue. and it is sleeping. no ppl got interest on thiss share. especially malaysian. 8 out of 10 malaysia when u tell them to buy parkson share. their first respond is like parkson can meh? closing so many outlet.
nobody can wake parkson. even management itself. watever they say.people got no confidence on them because continuos 7 to 8 years business loss.
so the best thing to wake parkson is a superb qr. let the profit talk .
What I heard from Cheng who sound like jealous other traders earned in money in bursa market. Btw I am mid-long term investor not trader as you. If you hold from 2021 onwards, should earn a few hundred percents in a few stocks and the best was Genetec 0.05-40.
About the fatty boom I am not sure who is it, to be honest no time to see others comment here like you hahaha. Hope your parkson can bring us fly.
Cheng is the coolest and most generous gentleman in the room sharing so much important information about and insights into this company impartially... I'm deeply grateful for that
xiaoming. whole market of hk currently at the historical low of pe 10. already bear for 4 years. it is the cheapest market now among all.
and for parkson sg. pra is in the watchlist of sgx. only when it succesfuly exit. then it can enjoy higher pe. i guess pra will meet the requirment and exit the watchlist not later than dec 2024
fool last time i saw u mention their gross profit margin increase and stablelize at double digit. actually partially is because of the ifrs 16 new accouting standard. as part of the rental expenses was separated out and stated in lease interest
but no worry , gross profit is still increase even compare with the same accouting standard. operating profit margin would be 10% using the previous standard 2019. so overall is still increase.
thought wanna sit tight and wait for the rise, but now after reading all big brothers comment, tomorrow sure my hand will itchy and top up ticket somemore.... XD
One quarter at a time and we will know how FY2024 turns out to be by early next year :) My personal expectation for PHB for FY2024 would be 5% growth target for revenue and operating net profit of 1-1.5% which will translate to 33M-49M annual operating net profit; 8M to 12M range of quarterly operating net profit. Well, I did not include any actions of properties disposal which will result in annual impairment entry upon transaction completion / ceases control.
yes it is, 听见股市. I have always used a conservative numbers to protect my own investments. I used the similar baseline for FY23 too; based on FY22 performance. It worked well so far and the only thing I will need to do for FY2024 would be to keep an eye on possible changes on its CGU - announcement of disposal of group properties. If there are such announcement during the fiscal year, I can at least get the netbook value from the group properties list and minus out from the 33M-49M range. That will give me a hint how FY2024 looks like for PHB.
Operating profits and accounting reporting if you will :) And the reality in the market as perceived from the bar charts :) Manage it well and you will get the opportunity to get good deals from time to time.
for this quater. let say income prg only breakeven. pra itself can contribute almost 28m myr to phb based on 67% holding. so any extra dollar profit from prg will contribute another half to phb on top of tat. i really see no sense if phb not moving when parkson malaysia business is good. bear in mind even china revenue contribite higher. but the profit ratio is almost 50 50 between prg and pra . so anyhow . i still be very optimistic on phb
Lol, F@@L. Sharing opinions only :) I agreed with AC on China market. Retail sales number in Q1 looks good beating estimates; mid single digit yoy. Apr started off not too bad. We will know by next week on 23rd when PRG board meet up to approve the report. Q1'24 will be up against a strong borders reopening numbers in Q1'23.
in China, the renewable energy industry is gradually growing
one of my friends just plan to close his business presence in Malaysia due to policy here and due to supply chain management issue in Malaysia for Energy and Resources industry
yup, agreed with AC. Consumer consumption is main contributor to China's GDP and will always get the gomen's attentions when it comes to fiscal and monetary policies.
ermm. just some discussions among shareholders, AC. you have shared good info too from the earnings analysis previous. Your m&a experience will be beneficial for shareholders - to prevent biases :)
AC - one side topic for my own learnings. Its related to m&a and specifically the financing piece of it - cash versus stocks. Is my assumptions in an ideal world correct - (1) BODs or company owners generally will not use stock to finance m&a if their stock is undervalued. Vice versa, they will use stock to finance m&a if their stock is fairly valued / overvalued. (2) If it is a financing by stocks, premium paid will be higher. Meaning if you are doing a m&a valuation and its financing by stocks, you will bake in a higher premium paid in the exercise? Thanks.
the problem with MnA when come to IPOs is that they are orchestrated to achieve the best result for selling investors.
when come to acquisition of business, if I rep buy side, i tend to normalise pnl so as to minimise the price for buying a business by minimising the ebitda and cash flow and also EV
likewise for sell side, I tend to normalise my pnl to inflate the ebitda so as to increase EV for better pricing for seller
there is a blind spot whereby a lot of ppl tend to over focus on financial results which had passed and could not be changed ..should focus on value creation
listen to mgt plan, justify their stands
can their plan be justified and bring really good return ..this is how I justified for clmt
when everyone only focus on loss making assets like 3 damansara
less ppl focus on value creation by changing business model, by doing divestment of non performing asset
Businessman tends to use less valuable stock to buy something more valuable such as a business
likewise certain businessmen will also use more valuable stock to fund an investment of a company whereby the investee is owned by the businessman
example 1 listed Co big shareholder use Listed co share which is more valuable to fund a less valuable business owned by the big shareholder personally for self Interest
treat Listed co retail and small shareholders like water fish
Alright and thank you very much for the detailed explanation, AC. In laymen terms - rpt can represent the motives behind it and m&a via stocks financing is seldom a good thing compared to cash financing.
Indeed, tim foo. Lots of good sharing by shareholders here and it helps to validate our own assumptions; minimize biases if you will. PRG results will be released on 23rd and AGM + PHB results will be on 29th. You can expect volatility during these period of time.
KUALA LUMPUR (May 17): Malaysia’s economic growth accelerated faster than expected in the first three months of 2024, thanks to higher household spending. stronger investment activities, and improvement in tourist arrivals. Gross domestic product grew 4.2% year-on-year (y-o-y) in January-March 2024 when compared to the same period in 2023, Bank Negara Malaysia announced on Friday. The reading is higher than the median estimate of 3.9% y-o-y growth in Bloomberg's survey of economists. On a seasonally adjusted basis, GDP rose 1.4% quarter-on-quarter. “Growth in 2024 will be driven by resilient domestic expenditure with additional support from the recovery in external demand,” Bank Negara Malaysia said in a statement.
as per financial reporting standard, a company must perform annual impairment review assessment on goodwill
so it is normal that a company only performs in Q4 because the basis is supportable when one has 1 full fiscal year info for him or her to perform impairment assessment
Impairment losses from assessment is a non cash item
as a result, in the cash flow statements, you could see that impairment of assets be adjusted before arriving into cash flow from or used in operating activities.
sames goes to ECL on receivables
due to the reason above, when we use discounted cash flow to assess the value of a company, we will adjust the non cash items
in MnA we will take normalised ebitda
exclude all judgmental elements such as impairment and ECL
normalisation of financial statements line items are so so crucial to eliminate all abnormalities that could distort financial positions and performance
so remember to exclude one off event, abnormal items, which are not meaningful when we assess profrmance of a business or co
Cheng and Fool, the above link is my sharing on why I always emphasized on Quality of Earning Assessment because every distortion in PnL will affect the Value of the Investee which will affect decision making process. Also, I touch topic on Handshakes Report to let retail investors know that we could actually get to know all via Purchase of Handshakes Report. Last but no least, try to perform FRS adjustments on your own to see the impact! In a nutshell, reading and seeing Financial Statements or Announcement of Results are not so crucial, UNDERSTANDING the Rationale behind the Numbers is the most important in every investment decision.
Thanks, AC. Will have a look at it. Agreed with you on quality of earnings. Normalized earnings, scaled to revenues, adjustments to non-recurring items / expenses, operating margins and operating income are necessary to handle PHB's report :) The MUGC during the pandemic was a good wake up call for PHB management and forcing them to make difficult but necessary actions that led to PRA and PRG turnaround from years of losses since FY2015 to net profit :) What used to be internal problems (excessive # of stores pushing for SSS, inefficient operations) + external problems (cyclical, industry / state of economy) leading to years of losses is no longer the case now. Its marching towards cyclical and industry dependent firms; seasonally strong in Q1, Q2, Q4 and strong consumer consumption/spending economy is necessary. Q1'24 economic data and fiscal/monetary policies for Malaysia and China pointing to favorable tailwinds for Parkson in FY2024 from consumer consumptions perspective :)
