EIG: Its
biggest shareholder – the Chieng family with a 61.02% stake – intends to
keep the beauty and wellness outfit company listed even as it raises
its shareholding further.
The group intends to go regional and to do so, the Chieng family plans to keep the company listed.
Providence Capital Sdn Bhd, which is the private vehicle of Eddy and his family, has upped its stake in EIG to 61.02%.
Eddy and his family could have easily privatized it with just another 2% in addition then.
It is eyeing to strike a
better balance in the region and expects to derive half of its revenue
from the Asean market and the remaining half from the local market.
Currently (Sept 2014) 59% of its revenue comes from Malaysia with 24% from Singapore and 12% from HK and 5% from Thailand.
It will fork out some rm6 million to rm10 million as capex in 2014 for its regional expansion.
It plans to go into the Indonesia market in FY2015…
The group three core
business units are professional services and sales, product distribution
and investment holding and investments in properties.
Parkson: It is at the inflexion point and is still in the early stages of an earnings recovery.
A recovery in earnings
is expected, given the margin uplift and low base comparison. Its
ongoing and proactive store rationalization and optimization plan, and
improving merchandizing mix are starting to bear
fruit, evidenced by the five young stores’ turnaround in the first half
of 2014.
Its same store sales growth in China has bottomed out and should stabilize moving forward.
Parkson continues to
explore potential collaborations with global brands on an exclusive
basis. Management plans to introduce at least 20 new brands in China and
Malaysia to improve the merchandise mix and boost
footfall.
The group plans to allocate about 40% of GFA for food and beverage, entertainment and service for its mall in China.
Also do not rule out the
possibility of a divestment of loss making, self owned properties given
its store rationalization plans.
OldTown: It posted a net profit of rm11.7 million in the first quarter ended June 30 of financial year 2015, down 4% year on year and 2% quarter on quarter. The weaker result was mainly due to higher sales
and distribution expenses which went up 36% year on year compared with revenue growth of 7.3%.
Same stores sales growth
was unimpressive in 1QFY2015 at below 2% while the group also
attributed the flattish revenue growth as its café chain segment to the
renovation works being carried out at some of its
outlets as well as the temporary closure of 10 outlets in the past six
months prior to Sept 2014 due to a relocation exercise.
Moving forward, the group will open more outlets in Malaysia, Indonesia and Singapore.
Meanwhile it is in the midst of revamping its operating strategy in its China market.
Moving forward, it is
planning to focus more on its overseas markets with China, HK and
Singapore being identified as the key markets.
Expect to see Oldtown to
face further challenges at both its MB and CC segments in view of
higher operating and marketing expenses while the overall consumer
sentiment remains weak.
