Parkson Holdings Bhd aims to turn its Indonesian retail operations into a key income driver within the next few years. Parkson Holdings plans to expand its retail network in Indonesia from six outlets presently to between 20 and 25 by 2015.
Parkson Holdings would implement cost-savings measures in its Indonesian operations by leveraging on the group’s bargaining power to purchase cheaper merchandise and implement more effective marketing activities as well as reducing staff redundancies.
The group will also open about 20 new outlets within the next two years in China, Malaysia, Vietnam and Cambodia to establish 128 outlets. About 16 of the new outlets will be in China.
The group’s wholly-owned subsidiary Parkson Retail Asia Pte Ltd (Parkson Asia) might seek a listing in Singapore. Parkson Asia houses the group’s retail operations in Malaysia, Indonesia, Vietnam and Cambodia.
The potential listing would enable the group to build up its cash reserves and seek a new valuation yardstick for Parkson Asia since the market is currently (June 2011) attaching zero value to its retail business outside China.
The operations in China, parked under the Hong Kong-listed and 51.5%-owned subsidiary Parkson Retail Group, contributes about 75% to group earnings.
In its sum-of-parts valuation, market has given a fair value of RM2bil to the group’s 90.1% stake in Parkson Asia.
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