PublicInvest notes weak quarter for Parkson China and Asia

KUALA LUMPUR: PublicInvest Research says there is a likelihood of Parkson Holdings Bhd missing its core profit estiamtes for the year. 

The group's 4QFY17 results are expected to be released on Aug 27.

"Maintain Neutral with an FY19 book valued-based TP of RM0.79. Though potential upsides appear attractive, operational challenges in the near term, particularly in the Southeast Asia region may keep price movements subdued," said the research house.

In a Friday report, it said the group's subsidiaries Parkson Retail Group (PRG) and Parkson Retail Asia (PRA) both recorded wider net losses as compared to the previous corresponding quarter.

PRG posted a net loss of CNY26.5mil versus CNY5.6mil in the same quarter in 2017 while PRA recorded a Q4 net loss of S$18.6mil, bringing core net loss to S$42.4mil versus S$33.9mil in FY17.

"At the operating level, PRG continues to report operating profit (2QFY18: CNY38.1m) while PRA’s quarter operating loss was SGD17.2m. China’s and Southeast Asia’s contributions combined, this would add up to an operating loss of c.RM27.2m," said PublicInvest.