Myanmar is a very huge market, high potential, Myanmar will be the next China in a short period of time. As for Msia market, its no surprise, slow market. But in this slow market, small ticket items are more sellable than big ticket items ie. properties, cars. Just my 2cents.
We initiate coverage of Bison Consolidated Berhad, a retail convenience store company, with a Buy rating and a TP of MYR2.25 based on 27x FY17F P/E. We like the stock for three key reasons:
We like the retail convenience store (CVS) space in Malaysia, as we think that this sub-sector has more room for growth, mainly due to: 1) stores per million people are still 5-15% / >60% underpenetrated versus regional / global peers (Fig. 21), and 2) fast-growing average sales per outlet in the CVS space (4% CAGR over FY12-15) as compared to modern grocery retailers (-4% CAGR over FY12-15).
While management currently guides an expansion of 70 stores per year (accounting for c. 80% of sales growth), we think that new stores could potentially be opened faster should quality locations with higher footfall be made available. There are currently two MRT lines and one LRT line planned in Malaysia. They would be expected to be opening over 2017-25F, potentially adding more space for CVS.
We expect gross margins to improve c. 150bps over the next three years to 35.7%, as management focuses on shifting its product mix to higher-margin food and beverages, fresh foods and non-food items. Furthermore, higher-margin segments such as advertising and promotions should increase proportionally to the increase in store space.
Higher valuations are justified with the stronger growth prospects. While Bison currently trades at c. 20x FY17F P/E, versus the Malaysia consumer sector median of 18x, we believe it is justified on a FY17F PEG basis (0.7x vs sector median of 2.1x) given the potentially higher margins as well as stronger earnings growth due to the expansion of its store network. We further believe a full re-investment of IPO proceeds could also fuel a re-rating.
Bison never fail to impress at 1.87 already woots, with it in growth stage, there's a lot of upside to this counter. If the counter mature into a stable recurring income counter those that invest early will be laughing to the grave
Bye Fahmi :D .. Seven eleven EPS is lower than Bison yet its shares is starting to bull.. While today people take profit from Bison as it has being rallying for quite some time already, but again bison is growing, its retail chain, distribution as well as food businesses.
saham ini ada masalah down syndrome sebab volume tersangat rendah....tapi masih pesat membesar dan berkembang setiap masa......tumbesaran tak stabil, tapi masih ada gaya nak tunjuk siapa hero...."bison"...sebab setiap hari orang pasti singgah kat bison.....macam 7eleven.
beli pun tak rugi,,,,sebab bison masih lagi membesar.....tak beli pun tak rugi... sebab dividen tersangat rendah sampai mata sakit memandang.....apa boleh buat, kita orang kampung sangat suka makan dan lepak kat bison petaling jaya outlet....haha
I think believe bison stock will do very well because its business model is recession proof, easy to understand and they sell basically daily necessity goods which are affordable. I just hope in future they will pay out reasonably good dividend to shareholders. So I would people to buy these stock.
What is the competitive advantage between Bison and 7-eleven and other competitors? Answer is nothing. Given that there is no special plans, no differentiation strategy and fighting in a crowded space, can't see why Bison will grow big. The dream about setting up money exchange services inside News.com has been ditched because rejected by Bank Negara yesterday. And today I see the price moved up a lot with small volume. Very speculative counter. Be careful.
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....
coolwind123
34 posts
Posted by coolwind123 > 2016-07-01 13:45 | Report Abuse
Does mynew shop available on the new LRT line? any1 went those stations before?