AmResearch sees exciting times ahead for Parkson (ext: Edge)

AMRESEARCH has initiated coverage on PARKSON HOLDINGS BHD [ ] (PHB) with a buy recommendation and a sum-of-parts (SOP) fair value of RM6.60 per share.
“We expect a successful replication of its concessionaire model to power the group’s earnings in the future, with increased earnings from Vietnam to match that of Malaysia’s in three years.
Being the retail gem of Lion Group, Parkson’s key driver of growth over the past few years had been its operations in Hong Kong and China, which contributed 69% to Parkson’s earnings, while Malaysia and Vietnam contributed 27% and 4%, respectively (FY08), said the research house.