Challenger Technologies

(17-10-2011, 08:40 PM)memphisb Wrote: Challenger secures new lease in Kl.

http://info.sgx.com/webcoranncatth.nsf/V...C0032A8E3/$file/NewleaseinKL20111017.pdf?openelement

The new PIKOM ICT mall @CapSquare in Kuala Lumpur appears to be a very promising specialist retail mall for IT products. More info on the mall and PIKOM.....
http://pikom.org.my/cms/General.asp?whic...2883&CatID=

Sunday, Jan 08, 2012

SINGAPORE - IT product megastore Challenger at Funan DigitaLife Mall will no longer operate 24 hours from next Sunday, reported The Straits Times.

The chain's only outlet to offer the 24-hour service will return to regular operating hours from 10am to 10pm instead.

It cited the lack of manpower as a reason for stopping the 24-hour operation, as well as the decreased volume of shoppers late at night.

According to The Straits Times, most shoppers seemed unconcerned about the change, and some were even unaware that it was open 24/7.

A spokesperson for the store said it would monitor its 27 outlets islandwide and evaluate the operating hours on an outlet-by-outlet basis.

http://news.asiaone.com/News/Latest%2BNe...20613.html

I wonder how much of challenger sales are derived from it shows at suntec or expo? There seems to be an increase in such events, some even of smaller scales at shopping centers booths. My question is that with the increasing hype of such events, I wonder does it start to cannibalize shop sales? Or rather it is indistinguishable from the AR and all we can see is unstoppable growth?

Different type of crowd. Shows are packed and more for smart shoppers. Some shoppers want convenience and don't want to squeeze.

With the regular food fair, do u see supermarket sales to drop?

"The Board of Directors of Challenger Technologies Limited (“the Company”) wishes to announce that two of the Company’s retail outlets, Challenger Mini @ Nanyang Polytechnic and the retail outlet located at Sembawang Shopping Centre will be closed by the end of January 2012. The Company will continue to rationalise its retail outlets’ location, including both opening and closing of retail outlets, so as to improve overall operating performance."

seems like challenger has reached some kinda plateau in term of optimising sales and market share in the island

At first glance, Margins obviously thin somewhat......when revenue up 30%, net profit before _____ is 14-15%

IMHO
This company is still unvalued despite the bonus share issue, and especially since NPAT grew 14% this year....

I am okay with the prudent approach of opening new retail stores, Malaysia is still a big country...it's "doable", if challenger can make it in malaysia with as much stores as singapore,

Vested.......but not sure when Mr.Market will value it right, maybe never if it doesnt make it into the "Big-caps".......

I will just keep counting my dividends =)

Challenger's established market position in Singapore in the IT products retail trade places the company in a position like an aircraft-carrier dealing with all those smaller and less well-positioned players.

Based on the just released FY11 full-year results.....
http://info.sgx.com/webcoranncatth.nsf/V...600371F1B/$file/SGXNET31Dec2011final.pdf?openelement [results announcement]
http://info.sgx.com/webcoranncatth.nsf/V...600371F1B/$file/CHALLENGERPressReleaseFY2011Final.pdf?openelement [press release]
Challenger posted a record NP of $15.64m on record sales of $316.86m, and achieved a ROE of solid 45.6% on 31Dec10's equity position of $34.29m. The way Challenger does its business actually requires only little permanent capital and yet continues to deliver a very high rate of return!

Based on the latest 345.208m issued shares and the last done share price of $0.415, Mr Market now values Challenger at a market cap. of $143.26m, which translates into a still undemanding PER of 9.2x.

<strike>Of $49m in cash, there is actually a $29m in cash restricted in use for 3 months. </strike> just realised that $16m loan was secured based from $29m in deposit. For Fy10, cash flow was bouyed up by $12m in trade and payable and $6m in proceeds from short-term borrowing.

(16-02-2012, 08:31 PM)dydx Wrote: Challenger's established market position in Singapore in the IT products retail trade places the company in a position like an aircraft-carrier dealing with all those smaller and less well-positioned players.

Based on the just released FY11 full-year results.....
http://info.sgx.com/webcoranncatth.nsf/V...600371F1B/$file/SGXNET31Dec2011final.pdf?openelement [results announcement]
http://info.sgx.com/webcoranncatth.nsf/V...600371F1B/$file/CHALLENGERPressReleaseFY2011Final.pdf?openelement [press release]
Challenger posted a record NP of $15.64m on record sales of $316.86m, and achieved a ROE of solid 45.6% on 31Dec10's equity position of $34.29m. The way Challenger does its business actually requires only little permanent capital and yet continues to deliver a very high rate of return!

Based on the latest 345.208m issued shares and the last done share price of $0.415, Mr Market now values Challenger at a market cap. of $143.26m, which translates into a still undemanding PER of 9.2x.

If we consider dividends of around 5%, the valuation is probably underwhelming =(

Anybody have experience, when small caps will get "recognition" in Singapore....any case studies to sic???

If we exclude special news like M&A, and look at market cap, i guess the following
Looking at the End of year market cap list for 2011, Challenger probably needs to double it's market cap to be in the news with any regularity, doubling will put it with the likes of Eu yang sang, yongam....stretch a little will be rotary and vicom.......

But it is a tall feat, i will just keep counting my dividends.....

Revenue hit a speed bump in 4Q. As a result, 2H is about the same as 1H, but profit declined 25.6%.

It should have, could have, been better.