Tuesday, December 24, 2013

S'pore Consumer -Powered By Regional Growth

 Consumer -Powered By Regional Growth

We are positive on Singapore’s consumer companies in 2014 as they will likely benefit from the region’s growing consumption. Given the > 30% returns YTD November, we continue to like specialty retailers Eu Yan Sang and OSIM for their North Asia exposure. We also like Parkson Retail Asia, Sheng Siong and Super Group following their recent share price declines, which have made their risk-reward profiles appealing.

¨ Mixed returns YTD. For 11M2013, our coverage returned an average of +6%, led by strong performances of +37% and +31% from specialty retailers Eu Yan Sang (EYSAN SP, BUY, FV: SGD0.92) and OSIM (OSIM SP, BUY, FV: SGD2.60) respectively. On the other hand, consumer discretionary players underperformed, with the share prices of FJ Benjamin (FJB SP, NEUTRAL, FV: SGD0.27) and Parkson Retail Asia (PRA SP, BUY, FV: SGD1.28) declining by 29% and 23% respectively.


¨ Beneficiaries of North Asia’s growth. Both EYSAN and OSIM saw improved sales in North Asia in their latest results. In 1QFY14, EYSAN posted profit of SGD1.4m (+318% y-o-y) as its Hong Kong-derived sales surged 26% to SGD37m, making up 46% of its 1Q revenue. The growing number of Chinese tourists lifted demand for the company’s Bo Ying Compound – a traditional Chinese remedy for paediatric discomfort – as well as other products. Similarly, OSIM reported 3Q13 net profit of SGD23m (+16% y-o-y) as its North Asia-derived revenue rose 8% to SGD81m, making up 53% of its total revenue.

¨ Improving valuations following recent declines. Meanwhile, the shares of PRA, Sheng Siong (SSG SP, BUY, FV: SGD0.74) and Super Group (SUPER SP, BUY, FV: SGD3.99) had declined by 19%, 8% and 20% over the past three months on earnings concerns. Nonetheless, we see their improving risk-reward trade-off and share price weakness presenting some good entry opportunities. Hence, we upgraded PRA and SUPER to BUY from Neutral in November. In addition, we still see a good risk-reward profile for SSG, which offers a dividend yield of 4.7%. Among the pack, EYSAN and OSIM remain our Top Picks for 2014.




Source/Extract/Excerpts/来源/转贴/摘录: DMG-Research,
Publish date: 23/12/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock