Parkson Retail Asia Remains Unimpressive In Its Southeast Asia Expansion.
Parkson Retail Asia is a department store operator based within Southeast Asia with interest in Malaysia, Indonesia and Veitnam. The share have not been so positive for investors during the past couple of years since its IPO during 2011. Dropping down from its high of S$1.70 per share, the company closed during the 8th of May,2014 at S$0.925 per share, slightly below that of its IPO price of S$ o.94 per share. The company has recently announced its third quarter earnings as of recently.
Parkson Retail Asia ended the third quarter with a revenue of down to 1.7% from its previous year. it recorded a revenue of S$106.7 million for the quarter. Its profit attributable to shareholders for this quarter went down a large 22.6% to just S$ 7.6 million. For the entirety of nine months, the net profits to shareholders fell to 9.2% to S$ 31.4 million.
The company shall be tackling a competitive environment in Malaysia and Vietnam. The same stores sales growth in Malaysia is almost flat, with just a smidge 0.1% for the quarter.
Vietnam has gained some large number of new retail space launched within Hanoi and there might be signs of oversupply in the market. Its similar store sales growth in Vietnam is -7.3% for the quarter.
Indonesia seems to be the only one with a segment that shoes growth, producing a same store sales growth of 8.9% for the quarter. The company has launched in the Myanmar market during the previous May but business is still small and insignificant.
Startup cost for new stores have also been affected by the results for this quarter. The group has launched over 5 new stores during the past 9 months during this financial year. The management expects to have another weak forth quarter mainly due to the slow down in tourism within Malaysia and the oversupply of retail space in Vietnam.