From Parkson China division (PRGL) - 31/12/2017 Final Results
MANAGEMENT DISCUSSION AND ANALYSIS (Part 2)
Diversified retail formats on the right track In 2017, we have seen many encouraging returns for our new retail initiatives. For instance, we launched the Qingdao Lion Mall in 2016 which offers over 200 brands with Parkson department store and Parkson supermarket as anchor tenants. Qingdao Lion Mall’s has achieved an occupancy rate of more than 95% since its opening and the high occupancy is backed by its carefully selected tenant mix and merchandise offering that fits local consumers. Constantly launching creative marketing campaigns, both online and offline, also helped to drive its successful launch. The mall has turned profitable during its first full year of operation in 2017 and we shall continue our efforts to optimize its tenant mix, marketing initiatives and operational efficiency.
Riding on the success of the Qingdao Lion Mall, we have expanded in to the “managed stores” business. In 2017, we were invited by a developer to manage a property in Nanning. Under the “managed stores” business model, the Group will manage commercial properties on behalf of property owners in return of management fees. The “managed stores” business is in line with our asset light model, and generates stable income stream for the group.
Our Parkson Newcore Citymall brand, a joint venture with Korea’s E Land Group, added another store under the brand in 2017. The first Parkson Newcore Citymall which was opened in Shanghai is well known for its popular Korean themed merchandise and lifestyle elements and has achieved outstanding financial and operational performance right since its opening. Following its success, we opened the second Parkson Newcore Citymall in Nanchang in May 2017.
We have been developing our food and beverage (“F&B”) business since 2015 to offer a wide variety of F&B brands to the local consumers, as Chinese consumers become healthier and more lifestyle conscious. Our F&B outlets aim to offer a cozy, affordable and trendy dining experience to consumers in between shopping, to enhance our customer experience and to create synergies for our retail and F&B business. One of our key F&B brands is the renowned handmade Taiwan bakery brand “Hogan Bakery” that was introduced to China in 2016. Started from the iconic “Xin Tian Di” flagship bakery, Hogan Bakery is well received by local consumers and has become a quality brand among millennials and young families. In 2017, we had four “Hogan bakery” in prime locations in Shanghai and a centralized kitchen had been put in place to accelerate the chain’s future expansion.
Just visit Parksons outlets on weekends and see how quiet it is, better to cut loss now before the real bear market hits, already got a fortaste of what it is like..
nowadays is e-commerce era. parkson online selling close shop coz unable to compete and generating loss in online selling. i'm a buyer of parkson website last time and that is my first and last time.
More than 80% of retail sales will still happen at physical locations in 2020. And despite the best efforts of Amazon.com, just over 8% of retail sales happen online. Now consider Amazon's $13.7 billion purchase of Whole Foods in 2017 and you can see where the leader in online commerce is placing its bets. Aside from Amazon, every top-10 retailer is a brick-and-mortar operation. That's not to say that traditional retailers aren't hedging their bets. Walmart has spent mightily to bridge the gap between online users and retail locations, including its 2016 purchase of e-commerce company Jet.com. Consider that about 80% of consumers research items online before making a purchase, and one can see that the future lies in a convergence between online and offline sales.
Great buy at this price. I hope to buy more if it gets cheaper. No more opportunities to buy so cheap in future once the turnaround comes. I think WC has been doing his best and things are looking up. For the doomsayers like ks55 and Joetay, you're wasting your time here. My advise, please move on to the stock that you owned. Share your thoughts with the followers of your stock. Not here, cheers.
Believe it will be similar to other lion stocks. Short term speculative play is possible as price is low but that doesn't mean it is cheap. With the current price, there are other stocks which are able to give reasonable dividends. Bankers may have started to cry amid its performance. Good luck everyone.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Lam LH
295 posts
Posted by Lam LH > 2018-04-02 15:28 | Report Abuse
40 cents only 72 lots buying