Parkson Retail today up 16%

PRA Today continue fly to 0.024 since low at 0.003 on March. its already up 800% !

We believe that the demand for refined sugar from the domestic retail and industries segments would be weak in FY20F as the MCO affects the consumption of sugar in beverages and products such as cakes and biscuits.

We also think that there would not be any significant increase in the selling price of refined sugar for the industries and export markets. This is due to weak demand and the falling price of raw sugar.

Still loss money. Buy buy buy.. cipek

As a result, MSM’s net loss is forecast to widen to RM47.0mil in FY20F from our original estimate of RM36mil.

TP has been reduced to 0.51

255, buy buy buy..!

kosong 55 diam diam buy ?

PHB more to come !

PRGL up 12% today

Affin Hwang Capital Daily Insight | Wednesday, 23 October 2019

MSM's pivot towards value-added products is crucial, says Affin Hwang
ANALYST REPORTS
Wednesday, 23 Oct 2019

9:06 AM MYT

KUALA LUMPUR: MSM Malaysia Holdings Bhd could see an earnings boost from 2020 on contribution from new value-added products and a recovery in sugar prices, says Affin Hwang Capital research.

It added that MSM is likely to post a weak set of results quarter-on-quarter for 3Q19 with the new Johor refinery running at 18-20% of its production capacity due to due to the weakness in raw sugar prices.

This represents a dip from the 20-30% utilisation rate in 2Q19.

However, losses are expected to narrow progressively from 4Q19 onwards owing to an increase in global sugar prices, a local average selling price revision and maiden volume orders for MSM's high margin liquid sugar and sugar premix starting October 2019, said Affin Hwang.

The research house believes the move towards value-added products as crucial given uncertainties such as a potential liberalisation of the local sugar industry and public campaigns against sugar consumption due to rising obesity rates in Southeast Asia.

"Amid the choppy industry landscape, MSM is still considering various corporate exercise proposals and strategic collaborations," it said.

PRA up 19%, why?

【3368】百盛商業售西安物業 料收益5520萬人幣
百盛商業(03368)公布，以總代價約8878萬元(人民幣，下同)，出售西安市物業予獨立第三者，料錄得會計收益約5520萬元。 所售物業為位於陝西省西安市碑林區東大街233號國貿大廈4層樓的相關部分，用作商業用途。 集團表示，進行業務重組，該物業並非其核心資產，出售可改善現金流量狀況，預期不會對營運構成不利影響，擬將出售事項所得款項淨額用作一般營運資金。

董事會欣然宣佈，於二零一九年九月十一日，本公司之間接全資附屬公司西安立豐
百盛廣場有限公司（「賣方」）與西安星鑽加簡企業管理諮詢有限公司（「買方」）訂
立買賣協議，據此，賣方同意出售及買方同意購買該物業，代價為人民幣88,777,200
元。

PRGL

sold property xi an, RMB 88777200

88777200

PRGL up 7%

upgrade to BUY

Parkson Holdings Bhd - FY19 Within Expectations
Date: 29/08/2019

Source : KENANGA
Stock : PARKSON Price Target : 0.27 | Price Call : BUY
Last Price : 0.22 | Upside/Downside : +0.05 (22.73%)

Back

FY19 CNL of RM64m expanded, compared to CNL of RM31m in FY18, is deemed within expectations of both our/consensus estimated CNL of RM60.9m. Malaysian operation has returned to black with the on-going rationalization strategy and China operation recorded higher operating efficiencies (+40%). At the current pace, PARKSON is expected to be in the black with FY20E CNP of RM8.5m and we introduce FY21E CNP, which is higher by 16%. Upgrade to OP from UP with a higher TP of RM0.270 (from RM0.240) based on the revised SoP.

FY19 within expectations. FY19 CNL of RM64m expanded, compared to CNL of RM31m in FY18, is deemed within expectations of both our/consensus full-year estimate of RM60.9m each. No dividend was declared, as expected.

YoY, FY19 core losses expanded to RM64m compared to core losses of RM31m in FY18 mainly due to higher finance costs and higher tax expenses. This was despite marginally increase in revenue (+1.3%) due to improved SSS growth from: (i) Malaysia (+5.1% vs. FY18 of -1.2%) which benefited from the spending spree during the zero-rated tax holiday as well as strong festivities sales, and (ii) Indonesia (-1.4% vs. FY18 of -3.8%) mainly driven by the targeted promotions and increasing house brands’ contribution, which more than offset the lower SSS growth in China and Vietnam/Myanmar operations. China’s FY19 SSS growth was lower at -2.2% vs. +0.5% in FY18 mainly due to lower direct sales arising from stores closures in 2018 but improving operating revenue was seen from strong sales performance in the Cosmetics & Accessories category (51% of merchandise sales). On the other hand, Vietnam’s SSS growth rates (-20.5% vs. FY18 of -8.3%) sunk deeper due to intense competition, especially with the launch of Vincom Center Landmark 81 Mall. Nevertheless, 53%-owned Parkson China recorded higher operating efficiencies to report an operating profit of RM155m (+40%) and Malaysia operation recorded operating profit of RM14m from operating loss of RM47m, which more than offset other region’s losses to record EBIT of RM100m.

QoQ, 4Q19 returned to the black with core PATAMI of RM12.6m compared to core losses of RM6.5m in 3Q19 from improved operating efficiencies and stores productivity, as the group recorded higher operating profit of RM55m (+2.6%), mainly contributed by China and Malaysia operation following the closure of underperforming stores (Malaysian segment saw the closure of Parkson stores in Suria KLCC and Puchong Square M Mall in the quarter, and China closed 3 stores YTD). These more than mitigated lower turnover (-13%) due to higher base in the previous quarter from seasonally stronger consumer spending during the CNY festivities and extended holiday but cushioned by Hari Raya Aidilfitri sales in Indonesia (+42%).

Outlook. We like Parkson for the following; (i) its strategy of optimising its retail format, expanding its product and services offerings, which is paying off, (ii) it is minimising stores losses via optimising store effectiveness and efficiency, which are bearing fruits, and (iii) China operation’s improvement to gain further momentum. As of June 2019, the group’s department stores network comprises 44 stores in China and 61 stores in South-East Asia, including Malaysia (42 stores), Vietnam (4 stores), and Indonesia (15 stores). Note that, Parkson has ceased its Myanmar operation with the closure of its only store in 2Q19.

Upgrade to OP from UP with a higher TP of RM0.270 (from RM0.240) based on the revised Sum-of-Parts (SoP) (implied PER of 34x based on FY20E EPS, above regional PER of 27x). The share price has plunged 20% since our UP call and we believe most negatives have been priced in. Key risks to our call are: (i) higher-than-expected losses in the South-East Asia region, and (ii) slower-than-expected China operation.

Source: Kenanga Research - 29 Aug 2019

AUDIT COMMITTEE
The Audit Committee (the “Committee”) has been established by the Company to review the
financial reporting matters, internal control and maintain an appropriate relationship with the
Company’s external auditor. The Committee has reviewed the Group’s unaudited condensed
consolidated financial statements for the six months ended 30 June 2019, including the
accounting principles and policies adopted by the Group. The Committee comprises the
non-executive director and three independent non-executive directors of the Company, one of
whom has appropriate professional qualification and experience in financial matters as
required by the Listing Rules

Pledge of assets
As at 30 June 2019, the Group has pledged deposits of RMB1,813.9 million, pledged
buildings, investment properties and prepaid land lease payment with a net carrying amount
of approximately RMB1,869.7 million, RMB3.0 million and RMB376.3 million respectively
to secure general bank loans. Other than the aforesaid, no other assets are pledged to any
bank or lender.

Current assets and net assets
The Group’s current assets as at 30 June 2019 were approximately RMB4,029.6 million. Net
assets of the Group increased by 0.6% to RMB4,650.6 million as at 30 June 2019 from
RMB4,624.9 million as at 31 December 2018.

Liquidity and financial resources
As at 30 June 2019, the cash and cash equivalents and deposits with licensed banks of the
Group (aggregate of financial assets at fair value through profit or loss, investments in
principal guaranteed deposits, time deposits and cash and bank equivalents deposited with
licensed banks) stood at RMB4,343.5 million, representing a reduction of RMB527.2 million
or 10.8% from the balance of RMB4,870.7 million recorded as at 31 December 2018. The
decrease was mainly due to (i) net cash inflow from operating activities amounting to
RMB93.3 million; (ii) net cash inflow from investing activities amounting to RMB13.7
million; and (iii) net cash outflow used in financing activities amounting to RMB634.2
million.
Total debt to total asset ratio of the Group was 24.9% as at 30 June 2019.

Profit for the period
As a result of the foregoing, our profit for the period increased by RMB2.9 million or 8.6% to
RMB36.1 million in 1H2019.
Profit attributable to owners of the parent
Profit attributable to owners of the parent increased by 35.0% from 17.7 million in 1H2018 to
RMB23.9 million in 1H2019.

Profit before income tax (“PBT”)
PBT decreased by 1.7% from RMB114.1 million in 1H2018 to RMB112.2 million in 1H2019.
This decrease was primarily attributable to the adoption of IFRS 16. The combination of
straight-line depreciation of the right-of-use assets and effective interest rate method applied
on the lease liability results in a higher total charge to profit or loss in the initial years of the
lease, and decreasing expense during the latter part of the lease term. The negative impact of
IFRS 16 on the profit before income tax for the six-month period ended 30 June 2019 was
RMB76.8 million.
Without the impact of IFRS 16, our PBT increased by RMB74.9 million or 65.6% to
RMB189.1 million in 1H2019. The increase was primarily attributable to our increased
revenue and closure of unprofitable department stores and a decrease in our operating
expenses in 1H2019.
Without the impact of IFRS 16, PBT as a percentage of GSP increased from 1.7% in 1H2018
to 2.9% in 1H2019.

Share of profit from associates
This is the share of results from the Group’s associated companies. The share of profit from
associates increased from RMB3.0 million in 1H2018 to RMB3.1 million in 1H2019. This
increase was primarily attributable to the profit from Parkson Newcore which entered into the
stable development period, largely offset by the negative impact of IFRS 16 of RMB4.6
million

Profit from operations
The Group posted profit from operations of RMB357.1 million in 1H2019, an increase of
RMB231.0 million or 183.2% compared to RMB126.1 million recorded in 1H2018.
Profit from operations as a percentage of GSP increased from 1.9% in 1H2018 to 5.4% in
1H2019.

Total operating revenues
Total operating revenues of the Group increased by RMB193.0 million or 8.1% to
RMB2,587.8 million, which was primarily attributable to (i) the strong sales performance of
Cosmetics & Accessories category in direct sales and (ii) the credit service income generated
by Parkson Credit Sdn Bhd which was acquired by the Group in October 2018. The increase
was partially offset by the decrease in commissions from concessionaire sales due to closure
of unprofitable stores and rental income due to the impact of adoption of IFRS 16.

Merchandise gross margin
The Group’s merchandise gross margin, a combination of concessionaire commission rate
and the direct sales margin, increased by 0.1% to 16.1% in 1H2019 compared to the same
period last year primarily due to change in merchandise sales mix and closure of
underperforming stores.

Total merchandise sales
For the six-month period ended 30 June Year-on-year
2019 2018 change (%)
RMB’000 % of total RMB’000 % of total
Concessionaire sales 4,760,521 77.7% 5,150,358 82.2% (7.6%)
Direct sales 1,369,587 22.3% 1,116,796 17.8% 22.6%
6,130,108 100.0% 6,267,154 100.0% (2.2%)
Sales from concessionaire counters constituted a majority of our merchandise sales in
1H2019 and in 1H2018. As a percentage of our total merchandise sales, it decreased in
1H2019 compared to 1H2018, primarily due to the growth in sales from our Cosmetics &
Accessories category in direct sales, which was mainly attributable to our robust performance
of beauty segment.
20
Merchandise sales mix
For the six-month period ended 30 June
2019 2018
% of total merchandise sales % of total merchandise sales
Cosmetics & Accessories 51.7% 47.7%
Fashion & Apparel 40.5% 43.6%
Groceries & Perishables 5.2% 5.8%
Household & Electrical 2.6% 2.9%
100.0% 100.0%
Sales in 1H2019 decreased across each of our categories except for Cosmetics & Accessories
compared to 1H2018 mainly due to the decline in Same Store Sales as well as the closure of
underperforming stores. During 1H2019 and 1H2018, a majority of our merchandise sales
was derived from sales under the Cosmetics & Accessories and Fashion & Apparel categories.
However, sales from Cosmetics & Accessories displayed faster growth than that from other
categories in 1H2019 mainly attributable to the opening of standalone concept store of
Parkson Beauty in May and September 2018 and our efforts to enhance market awareness of
our beauty segment.

OUTLOOK
Looking ahead, we will continue executing our strategy aimed at diversifying retail formats,
upgrading brand and product categories, including the fashion and beauty segment led by
Parkson Beauty and our F&B businesses such as Hogan Bakery, as well as identifying
optimal locations to expand our department store and supermarket network. Furthermore, we
will also focus on further developing our omni-channel marketing, as well as creating a
strong online community for customers through social media networks, VIP programmes and
personalised customer service.
We believe that the Group is well positioned to provide the best service in the Chinese retail
market and demonstrate solid performance amid challenging retail market environment, while
creating long term value to our stakeholders.

Solid omni-channel marketing offering optimised customer experience
With the technology and innovation in the retail landscape accelerating, retailers across Asia
have turned their focus to e-commerce to further boost sales growth. Over the past two years,
the Group launched a number of initiatives to stimulate sales and tap into rising online and
offline sales opportunities.
19
We also channelled our marketing efforts to build an omni-channel community online and
drive visitor traffic at our stores using our online and social media channels including
Parkson’s official WeChat account and Parkson Plaza, our mobile shopping app. In addition,
we will blend social media elements into marketing our business lines, thus, enhancing
shopping experience

Our fashion and beauty segment performed well since launched last year. Our flagship
“Parkson Beauty” store concept operating in three retail outlets in Changsha, Qingdao and
Nanning, has been well received by key customer groups and has already become a leading
fashion brand. The fashion and beauty segment will continue proactively expanding its
collaboration with a range of different brands. In the first half year of 2019, Parkson and
Kiehl’s, a cosmetic brand, jointly launched a marketing activity to drive sales growth in
cosmetic segment.

Continued expansion of retail network
The rising consumer demand for quality products and service in the past several years has
bolstered innovation, which, in turn, has facilitated further development in the retail industry.
In order to stand out in the department store industry, one has to be innovative and dynamic.
In the first half year of 2019, Parkson continued diversifying its retail formats. This strategy
covers a range of areas, including the expansion of product categories such as more
international cosmetic brands, sports and apparel brands on top of traditional products, as
well as upgrading traditional supermarkets into gourmet supermarkets in department stores to
cater for rapid changing of consumer demands. We also work on the interconnectedness
between our businesses and further upgrading our product offering. The Group believes that
these measures will translate into a stable income in the future.
Known for their quality products and services, Parkson’s food and beverage (“F&B”) brands
also continue expanding their footprint. Thus, Hogan Bakery is expected to open a franchise
store in Fuzhou in the third quarter of 2019. Together with“雞薈”(Ji Hui) restaurant brand,
Parkson’s F&B continue to develop and launch more new products. One of our main
objectives is to provide a full spectrum of consumer experience, and that is why we are
committed to integrating the retail and catering businesses so that our customers can enjoy a
18
quality dining experience while shopping.
With consumption upgrading and demand for premium domestic and imported products
rising across second-tier and third-tier cities, we plan to open supermarkets in our department
stores in more places. In April 2019, we opened a new supermarket in Mianyang and expect
to open another new supermarket in the same city in the third quarter

Financial Results
During the first six months of 2019, the Chinese retail market maintained stable growth
despite continued trade tensions between China and the United States. China’s Gross
Domestic Product recorded a 6.3% growth in the period, while inflation was 2.2%. Although
industrial output slowed to 6.0%, retail sales growth was 8.4% in the first half of this year,
ahead of market expectations. The Group believes that the trend of consumption upgrade will
continue to prevail. Consumption is expected to remain the main driver of China's economic
growth. China's consumer market is expected to maintain a positive outlook regardless of the
macroeconomic and geopolitical challenges.
In the 1H2019, the Group recorded total gross sales proceeds (“GSP”) of RMB7,494.9
million inclusive of value added tax, a decline of 3.3% compared with the same period of last
year, which was mainly due to closure of underperforming department stores. Same store
sales (“SSS”) in 1H2019 decreased by 2.2%, reflecting the continued slowdown of the
Chinese economy and the diversion of customer traffic. The Group’s overall gross profit
margin increased to 22.0% from 21.5% in the same period last year, profit from operations
increased by 183.2% year-on-year to RMB357.1 million.

MANAGEMENT DISCUSSION AND ANALYSIS
Business Review
The Board delighted to report that the Group achieved stable performance in the first six
months of 2019. This is the result of our dedication to diversify our retail formats and
enhanced product offerings aimed at reinforcing our position as a leading lifestyle retailer in
China.

EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS
OF THE PARENT
The calculation of basic earnings per share amount for 1H2019 is based on the profit for
the period attributable to ordinary equity holders of the parent of approximately
RMB23.9 million, and the weighted average number of 2,634,532,250 ordinary shares in
issue during the period.
The calculation of basic earnings per share amount for 1H2018 is based on the profit for
the period attributable to ordinary equity holders of the parent of approximately
RMB17.7 million, and the weighted average number of 2,634,532,250 ordinary shares in
issue during the period.
The calculation of the diluted earnings per share amount is based on the profit for the
period attributable to ordinary equity holders of the parent, and the weighted average
number of ordinary shares in issue during the period, as used in the basic earnings per
share calculation, plus the weighted average number of ordinary shares assumed to have
been issued at no consideration on the deemed exercise or conversion of all the dilutive
potential ordinary shares into ordinary shares.
The Group had no potentially dilutive ordinary shares in issue during the six-month
period ended 30 June 2019 and 2018.

PARKSON RETAIL GROUP LIMITED
百盛商業集團有限公司
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 3368)
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2019
HIGHLIGHTS
Total operating revenues for the period increased by RMB193.0 million or 8.1% to
RMB2,587.8 million.
Gross profit margin for the period increased to 22.0%, as compared to 21.5% in
1H2018.
Operating profit for the period increased by RMB231.0 million or 183.2% to RMB357.1
million. Without the impact of IFRS 16, operating profit for the period would increase
by RMB101.5 million or 80.5% to RMB227.6 million.
Profit attributable to owners of the parent was RMB23.9 million in 1H2019, as
compared to RMB17.7 million in 1H2018.

PARKSON GROUP Interim NP Climbs 35.3% to RMB23.89M; Nil Div

2019/08/22 16:44Recommend0Positive3Negative2 SHORT SELL STOCK INFO
PARKSON GROUP (03368.HK) +0.030 (+4.918%) announced the interim results ended 30 June 2019. Net profit amounted to RMB23.886 million, up 35.3% yearly. EPS equaled 0.9 fen. No dividend was declared.

百盛集团(03368)中期股东应占利润同比增35.33%至2388.6万元

2019年08月22日 16:57来源： 智通财经网

百盛集团(03368)发布2019年中期业绩，该集团于期内经营收益总额同比上升8.1%至人民币25.88亿元(单位下同)。毛利率上升至22.0%，而2018年上半年取得21.5%。母公司所有人应占利润为2388.6万元，同比增长35.33%。每股基本盈利为0.009元，不派息。

公告显示，期内经营利润同比增长183.2%至3.57亿元。剔除采纳国际财务报告准则第16号的影响，期内经营利润同比增长80.5% 至2.276亿元。

百盛集团(03368)中期股东应占利润同比增35.33%至2388.6万元

2019年08月22日 16:57来源： 智通财经网

百盛集团(03368)发布2019年中期业绩，该集团于期内经营收益总额同比上升8.1%至人民币25.88亿元(单位下同)。毛利率上升至22.0%，而2018年上半年取得21.5%。母公司所有人应占利润为2388.6万元，同比增长35.33%。每股基本盈利为0.009元，不派息。

公告显示，期内经营利润同比增长183.2%至3.57亿元。剔除采纳国际财务报告准则第16号的影响，期内经营利润同比增长80.5% 至2.276亿元。

百盛集团(03368)中期股东应占利润同比增35.33%至2388.6万元

2019年08月22日 16:57来源： 智通财经网

百盛集团(03368)发布2019年中期业绩，该集团于期内经营收益总额同比上升8.1%至人民币25.88亿元(单位下同)。毛利率上升至22.0%，而2018年上半年取得21.5%。母公司所有人应占利润为2388.6万元，同比增长35.33%。每股基本盈利为0.009元，不派息。

公告显示，期内经营利润同比增长183.2%至3.57亿元。剔除采纳国际财务报告准则第16号的影响，期内经营利润同比增长80.5% 至2.276亿元。

百盛集团(03368)中期股东应占利润同比增35.33%至2388.6万元

2019年08月22日 16:57来源： 智通财经网

百盛集团(03368)发布2019年中期业绩，该集团于期内经营收益总额同比上升8.1%至人民币25.88亿元(单位下同)。毛利率上升至22.0%，而2018年上半年取得21.5%。母公司所有人应占利润为2388.6万元，同比增长35.33%。每股基本盈利为0.009元，不派息。

公告显示，期内经营利润同比增长183.2%至3.57亿元。剔除采纳国际财务报告准则第16号的影响，期内经营利润同比增长80.5% 至2.276亿元。

百盛集团(03368)中期股东应占利润同比增35.33%至2388.6万元

2019年08月22日 16:57来源： 智通财经网

百盛集团(03368)发布2019年中期业绩，该集团于期内经营收益总额同比上升8.1%至人民币25.88亿元(单位下同)。毛利率上升至22.0%，而2018年上半年取得21.5%。母公司所有人应占利润为2388.6万元，同比增长35.33%。每股基本盈利为0.009元，不派息。

公告显示，期内经营利润同比增长183.2%至3.57亿元。剔除采纳国际财务报告准则第16号的影响，期内经营利润同比增长80.5% 至2.276亿元。

金融產品信息
保本存款投資指本集團自在中國經營的持牌銀行認購的保本型理財產品。於二零一九年六月三
十日，該等產品餘額約為人民幣290.8百萬元，約佔集團總資產1.8%。
按公允價值計量且其變動計入損益之金融資產指本集團自在中國經營的持牌銀行認購的非保
本型理財產品。於二零一九年六月三十日，該等產品的公允價值約為人民幣521.5百萬元，約
佔集團總資產3.3%。

母公司權益持有人應佔利潤
母公司權益持有人應佔利潤由二零一八年上半年的人民幣17.7百萬元增加35.0%至二零一九年
上半年的人民幣23.9百萬元。

期內利潤
由於上述原因，期內利潤增加人民幣2.9百萬元或8.6%至二零一九年上半年的人民幣36.1百萬
元。

除所得稅前利潤
除所得稅前利潤由二零一八年上半年的人民幣114.1百萬元減少1.7%至二零一九年上半年的人
民幣112.2百萬元。該減少主要歸因於採納國際財務報告準則第16號。使用權資產的直線折舊
及應用於租賃負債的實際利率法的結合，將導致於租賃初期在損益的總開支較高，及於租約後
期的開支逐漸減少。截至二零一九年六月三十日止六個月期間，國際財務報告準則第16號對除
所得稅前利潤的負面影響為人民幣76.8百萬元。
剔除採納國際財務報告準則第16號的影響，除所得稅前利潤增加人民幣74.9百萬元或65.6%至
二零一九年上半年的人民幣189.1百萬元。此增加主要由於收入增長，以及關閉盈利能力差的
門店導致本公司二零一九年上半年的經營開支減少所致。
剔除採納國際財務報告準則第16號的影響，除所得稅前利潤佔銷售所得款項總額的百分比從二
零一八年上半年的1.7%上升至二零一九年上半年2.9%。