Courts Asia IPO

Shion

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Courts Asia shares as attractive as its storefront now

Courts Asia shares as attractive as its storefront now

http://www.theedgemarkets.com.sg/sg/article/courts-asia-shares-attractive-its-storefront-now

SINGAPORE (Sept 19): Courts Asia just posted its highest quarterly earnings in three years, a jump of 56% against 1QFY16 to June, yet its shares continue to trade at 7.8 times FY17 earnings, below its historical 10.2 times, and even lower than its peer valuation of 22.9 times earnings.

CIMB equity research analyst Jonathan Seow views the group as a “turnaround story” but notes that the market “has yet to price in a recovery”.

Nonetheless, Seow has maintained his “buy” rating for the electronics and furniture retailer, with a higher target price of 53 cents, from 50 cents previously, adding that the retailer has been improving its productivity through the subleasing of floor space to complementary brands, and building a modular and flexible store format.

During the quarter, gross margins were 3.1 percentage points above its two-year historical average of 33%, due to higher merchandise margins from its bulk purchases and supplier rebates, an improved product range, and higher proportion of credit sales.

Seow also added that the group has been able to negotiate for lower rents for all its stores in Singapore and Malaysia, which would boost margins and future earnings.

Furthermore, even at current levels, the stock offers a dividend yield of 4% which is “attractive”. Yet, Seow reiterated that the risk of large credit losses remains.

Shares of Courts Asia are currently trading at 41.5 cents.
 

Average

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Courts Asia shares as attractive as its storefront now

http://www.theedgemarkets.com.sg/sg/article/courts-asia-shares-attractive-its-storefront-now

SINGAPORE (Sept 19): Courts Asia just posted its highest quarterly earnings in three years, a jump of 56% against 1QFY16 to June, yet its shares continue to trade at 7.8 times FY17 earnings, below its historical 10.2 times, and even lower than its peer valuation of 22.9 times earnings.

CIMB equity research analyst Jonathan Seow views the group as a “turnaround story” but notes that the market “has yet to price in a recovery”.

Nonetheless, Seow has maintained his “buy” rating for the electronics and furniture retailer, with a higher target price of 53 cents, from 50 cents previously, adding that the retailer has been improving its productivity through the subleasing of floor space to complementary brands, and building a modular and flexible store format.

During the quarter, gross margins were 3.1 percentage points above its two-year historical average of 33%, due to higher merchandise margins from its bulk purchases and supplier rebates, an improved product range, and higher proportion of credit sales.

Seow also added that the group has been able to negotiate for lower rents for all its stores in Singapore and Malaysia, which would boost margins and future earnings.

Furthermore, even at current levels, the stock offers a dividend yield of 4% which is “attractive”. Yet, Seow reiterated that the risk of large credit losses remains.

Shares of Courts Asia are currently trading at 41.5 cents.
this is really rewarding for courts shareholders... hope my invested companies have this kind of story too

Sent from peel peel juice using GAGT
 

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http://www.businesstimes.com.sg/com...ofit-hurt-by-recent-sales-promotions-in-spore
Thu, Nov 09, 2017 - 7:22 PM
Courts' Q2 profit hurt by recent sales promotions in S'pore

ELECTRICAL, IT and furniture retailer Courts Asia stumbled in its fiscal second quarter as the group's profit margins in Singapore were hurt by sales promotions undertaken earlier this year.
Net profit fell 75 per cent to S$1.51 million for the quarter ended Sept 30 from S$5.98 million the year before.
Gross profit was down 6 per cent year on year, with margins affected by ongoing renovation sale promotions in its Singapore flagship Courts Megastore, a drop in credit sales in Singapore and Malaysia, as well as an increase in impairment costs.
Revenue, however, dipped only slightly - by 1.4 per cent year on year to S$176.45 million, from S$179.02 million.
"The retail landscape has been challenging and uncertain across our operating markets," commented Courts Asia's executive director and group CEO, Terence Donald O'Connor. "Whilst topline performance held steady, our bottom line took a short-term impact from lower margins this quarter mainly due to ongoing renovation sale promotions at our Megastore and a dip in credit sales."
The group's earnings per share for the period was 0.29 Singapore cent, down from 1.15 Singapore cents the year before.
Looking ahead, the group's new Courts Megastore - said to be an integral part of the group's S$10 million plan to rejuvenate its store network in Singapore - is due to officially open on Nov 11.
"To clearly differentiate ourselves in the market, our team has collectively curated a whole new in-store experience that is set to be the 'best practice' within the industry," Dr O'Connor said.
In Malaysia, Courts Asia intends to focus its efforts on driving profitability for existing stores before expanding its footprint in the country, in view of the prolonged weak consumer climate and legislative changes expected in the near to medium term there.
"The retail environment in Malaysia remains soft in the short to medium term. With the Malaysian business under pressure due to the challenging retail outlook and upcoming legislative changes in 2018, we decided to pull back on our expansion ambition, and focus our efforts in driving profitability in our existing stores," Dr O'Connor said.
The group is preparing for the impending legislative change in Malaysia - which will see interest rates being capped at 15 per cent per annum from January 2018 onwards under the Consumer Protection (Credit Sale) Regulations 2017 - by reviewing new revenue streams and working to drive down its operating costs.
"We have undertaken a cost-efficiency exercise to reduce the operating costs which included right-sizing the workforce to the business. Moving forward, it is imperative that we continue to keep a sharp focus on increasing productivity and controlling costs," Dr O'Connor said.
 

Jupiter2017

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http://www.businesstimes.com.sg/companies-markets/courts-asia-q3-profit-falls-28-on-flat-revenue
Courts Asia Q3 profit falls 28% on flat revenue
Tue, Feb 13, 2018 - 8:11 PM Wong Kai Yi kaiyiw@sph.com.sg

ACROSS a grim retail environment, Courts Asia reported a drop of 28.7 per cent in net profit to S$3.51 million for its third quarter ended Dec 31, from a restated profit of S$4.92 million a year ago.
The drop in profit was mainly due to lower credit sales in Malaysia as a result of the country introducing the Consumer Protection (Credit Sale) regulations which came into force Jan 1, 2018.
Courts Asia's group chief executive Terence O'Connor said capping interest rates at 15 per cent per annum, coupled with a challenging retail environment, will impact sales in the short term.
"The operations and sales team had to be trained to meet the new regulations and this also had an impact on credit sales," he said, adding that the company will need to take some "difficult decisions" which include reviewing the closure of underperforming stores.
"The focus will be on driving productivity with an optimal store footprint for Malaysia," Dr O'Connor said.
Courts also said the credit collections environment continues to be "challenging" in Malaysia.
The electrical, IT and furniture retailer said its Q3 FY16/17 comparative figures have been restated from previously announced figures in the Q3 FY16/17 announcement to take into account retrospective adjustments arising from the adoption of FRS 115, and reclassification of expense line items.
For the three months ended Dec 31, revenue was mostly flat, edging up 0.6 per cent to S$186.8 million from the year-ago period, the retailer said in an earnings statement on Tuesday night.
Revenue from Singapore, which contributes to some 72 per cent of group revenue, increased 8 per cent to S$134.5 million in the third quarter, helped by higher sales of goods from the relaunch of its online platform and the reopening of the Courts Megastore at Tampines in November 2017.
Malaysian revenue - which contributes to 24.3 per cent of turnover and is counted in Malaysian ringgit - slid 15.9 per cent on a year-on-year basis in Q3 FY17/18, mainly due to lower sales and earned service charge income, the group said.
Earnings per share fell to 0.68 Singapore cent from 0.96 Singapore cent in the previous year. Net asset value per share crept up to 44.5 Singapore cents as at Dec 31, from 42.5 Singapore cents nine months ago.
In the earnings statement, Dr O'Connor said despite the overall "muted" retail environment across its key markets, the group was optimistic on the long-term outlook.
"(We) will continue to focus on our profitability by managing costs and productivity and investing in growth areas," he said.
The group also announced the appointment of Stan Kim as group chief operating officer, who will also be responsible for helming the Malaysian business until a new country CEO is found. The former Malaysia country CEO, Dolf Posthumus, will take on the role of Malaysia COO.
Courts Asia shares finished at S$0.29 apiece, up S$0.01 or 3.6 per cent on Tuesday.

price link: http://www.shareinvestor.com/fundamental/factsheet.html?counter=RE2.SI
 

commach

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@Jupiter2017

Refrain from thread digging and demand to change the thread title unless you're the TS. Any digging of old thread will result in infraction.

Please take note, no further reminder before I take action against thread digging and PM to demand title change, you are not my boss.
 

Jupiter2017

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@Jupiter2017

Refrain from thread digging and demand to change the thread title unless you're the TS. Any digging of old thread will result in infraction.

Please take note, no further reminder before I take action against thread digging and PM to demand title change, you are not my boss.

Apologies, Mod.
I am not making any demand,
just requesting to change the existing thread title from 'Courts Asia IPO' to 'Courts Asia *Official* (SGX: RE2)'.
I only have the best of intentions for this forum.
 

Perisher

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Apologies, Mod.
I am not making any demand,
just requesting to change the existing thread title from 'Courts Asia IPO' to 'Courts Asia *Official* (SGX: RE2)'.
I only have the best of intentions for this forum.

Commach ain’t the friendliest mod around. :o
 

commach

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Commach ain’t the friendliest mod around. :o

Nothing to do with friendliness, there is a official guideline in changing thread title, emphasized in moderator AGMs.

Yes, even if spotted error or typo, we won't change the title. We have no idea whether the error/typo are intentional or not. Title can be change with acceptable reasons, especially requested by TS, the creator of the thread. If someone change the title of your composition without asking you, will you be happy about it?
 

Mancunian2

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kudos to Jupiter for updating the latest results
don't see what is wrong with that :s22:
 

Perisher

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Nothing to do with friendliness, there is a official guideline in changing thread title, emphasized in moderator AGMs.

Yes, even if spotted error or typo, we won't change the title. We have no idea whether the error/typo are intentional or not. Title can be change with acceptable reasons, especially requested by TS, the creator of the thread. If someone change the title of your composition without asking you, will you be happy about it?

We have different views despite what the official guidelines say. :o
Thanks for not infracting Jupiter though.

Jupiter2017, might wanna consider just starting a new thread instead since the changing title route isn't working.
 
Last edited:

Shion

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@Jupiter2017

Refrain from thread digging and demand to change the thread title unless you're the TS. Any digging of old thread will result in infraction.

Please take note, no further reminder before I take action against thread digging and PM to demand title change, you are not my boss.

With regards to thread digging, my idea is to have a consolidated thread for each stock, just like in ValueBuddies.

Perhaps a particular stock has little interest so the thread sinks, but what if suddenly there are major developments and there is a spike in interest ? Should a new thread be started or continue from the previous old thread (which means, digging it out) ?
 

Shion

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Courts Asia offers to buy back $75m of 5.75% notes due 2019 at 100.75% of par

Courts Asia offers to buy back $75m of 5.75% notes due 2019 at 100.75% of par

https://www.straitstimes.com/busine...offers-to-redeem-early-its-75m-notes-due-2019

SINGAPORE - Mainboard-listed Courts Asia is offering to buy back its $75 million worth of 5.75 per cent notes due 2019 at 100.75 per cent of the principal amount.

The electronics and furniture retailer is concurrently seeking noteholders' consent to include a call option in the terms of the notes that will allow Courts Asia to redeem the bonds early at 100 per cent of par. The issuer plans to exercise that option within 15 days if it is successfully included.

Noteholders who deliver their consent to the inclusion of the call option by the business close of July 13 will receive an early consent fee equal to 0.25 per cent of the principal amount. Consent received after their early-bird deadline will receive a normal consent fee of 0.15 per cent.

The company has called for a noteholders' meeting at 10am on July 20 to vote on the proposal.

Courts Asia said the proposed transaction is part of its continuing capital and liability management initiatives. It is also of the view that it is prudent to explore the early redemption of the notes since it has "existing surplus cash".

DBS is the dealer manager for the solicitation.

Courts Asia common stock last traded flat at 21 cents apiece on Wednesday.
 

Shion

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Courts Asia gets buy offer from Japan retailer Nojima at $0.205 apiece; share price up 31.6% after m

Courts Asia gets buy offer from Japan retailer Nojima at $0.205 apiece; share price up 31.6% after midday break

https://www.straitstimes.com/busine...-from-japan-retailer-nojima-at-0205-per-share



SINGAPORE - Japanese electronics retailer Nojima Corp is making a conditional cash offer for Courts Asia at $0.205 per share as it seeks to gain a strong foothold in South-east Asia.

The offer price represents a premium of about 35 per cent above Courts' closing price on Wednesday (Jan 16), and a premium of about 36.1 per cent, 34.3 per cent and 23.3 per cent above the volume-weighted average price (VWAP) per share for the one-month, three-month and six-month period respectively. Courts shares closed at 15.2 cents on Thursday.

Trading in Courts shares were halted before the market opened on Friday, but its stock price has been on a tear since the trading halt lifted just after the midday market break. As at 2.36pm, its shares were trading 4.8 cents or 31.6 per cent higher at 20 cents, 2.5 per cent under Nojima's offer price per share.

The counter, which averaged a turnover of 255,000 shares over the last 15 trading days, was also seeing comparatively heavy trading, with 1.59 million shares changing hands.

The offer is conditional upon unit Nojima Asia Pacific having received by the close of the offer sufficient valid acceptances that together with the shares owned by Nojima, and any parties acting in concert with it, results in more than 50 per cent of the shares in issue and outstanding. Nojima has received an undertaking from Singapore Retail Group (SRG), under which SRG has agreed to irrevocably tender all its 382 million shares translating to a 73.8 per cent stake in the company. Once SRG accepts, the offer will turn unconditional.

Tokyo-listed Nojima is an electrical appliance retail chain mainly dealing with the sale of consumer digital appliances, and has a headcount of over 8,000 employees worldwide. It has a market capitalisation of $1.4 billion and earned revenues of $6.1 billion for the financial year ended March 2018.

After the offer is completed, Nojima may undertake a "strategic and operational review of Courts, with a view to realising synergies, economies of scale, cost efficiencies and growth potential."

It will also consider delisting Courts from the Singapore Exchange if it gets enough acceptances to do so.

Explaining the rationale behind the acquisition, Nojima said it has been mulling over entering the consumer appliance retail market in South-east Asia, and that synergies can be created between the two retail groups, including cross-selling to an enlarged customer base, economies of scale, improvement of productivity and cost efficiencies, as well as knowledge sharing.

It also highlighted that shareholders can use the offer as an exit opportunity given Courts' low trading liquidity. "The closing price of the shares have not been at or above the offer price since 27 July 2018," it added.

The offer document will be dispatched to shareholders in 14-21 days from the date of the offer announcement.

The board said on Friday it appoint an independent financial adviser (IFA). The advice of the IFA and the recommendation of the company's independent directors will be issued to shareholders via a circular within two weeks from the offer document.

Courts posted a net loss of $3.1 million for its fiscal second quarter, sinking into the red from a net profit of $1.5 million for the same period a year earlier, weighed down by lower gross profit margins and revenue. Revenue for the three months ended Sept 30, 2018, fell 6.4 per cent to $165.1 million as its Singapore operations reported lower revenue owing to lower earned service charge income and corporate sales.

Courts announced on Tuesday it will close one of its Indonesian megastores in Tangerang as it was historically not profitable and to avoid high rental costs over the remaining lease term. It also bought a property in Jakarta for $9.36 million and said it will restructure its megastore there.
 
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