Popular Holdings

I should re-look into Popular base on the summary posted

"profit before tax for 2009, 2010, 2011 and 2012 would have been $9M, $18M, $25M and $36M"

That is 100% (2010), 39%(2011) and 44%(2012) growth, CAGR of more than 40%, very impressive

(12-08-2012, 06:30 PM)KopiKat Wrote: shn,

Great summary! But then again, 'Beauty is in the eyes of the Beholder' and since I'm vested.....

(12-08-2012, 04:55 PM)shn Wrote: In 2009, Popular made a non-cash impairment provision of $28.2M. $21.7M was reversed in FY2010 while $6.5M was reversed in FY2010. Removing the impairment provision and reversal, profit before tax for 2009, 2010, 2011 and 2012 would have been $9M, $18M, $25M and $36M -- very impressive grow!

Hey! Don't look like a co. in a sunset industry! Looks more like a Growth stock!

Not familiar with Popular but in general, showing historical PBTs might not be meaningful without consideration for injections of capital, especially when using the trend as basis for giving a stock growth status.

Office solutions ..
I quite like this new business. It's has a lot of synergy with their current retailing business. The stationery and office products sold in the retail outlets would be products required by the offices.

The difference is not selling to the masses. It will be selling products in bulk to offices.

They shld be able source the products with lower pricing due to the volume.

In the longer term, if this new business is successful, it can morph into the "Staples" of Asia.

SGX Annc,

The Board of Directors of Popular Holdings Limited (the "Company") wishes to announce that at the Annual General Meeting (“AGM”) and Extraordinary General Meeting (“EGM”) of the Company held on 24 August 2012, all the resolutions as set out in the Notices of AGM and the EGM dated 6 August 2012 were duly passed.


Let's see how much they deem to be the fair value, with their newly acquired Share Buy-Back mandate (fm EGM)...

Just finished reviewing Popular's FY12 (ended 30Apr12) AR, which makes interesting reading.....
http://info.sgx.com/listprosp.nsf/07aed3...200242afe/$FILE/Annual%20Report_Final%20Version.pdf

For sure, the sharp 30.7% yoy increase in NP to $31.111m - translating to an EPS of $0.037 (based on the 841.106m issued shares as at 30Apr12) is impressive, and this is especially so when most of the profit increase has come from the Retail & Distribution segment. In this, Malaysia as a geographical division should be the main contributor, as its revenue contribution has increased a solid 29.2% yoy to $212.69m in FY12. Based on the fact that Popular added 5 new stores in Malaysia in FY12 - and on last count there are now 70 stores in Malaysia! - it should be the area to watch for further near-term business and profit growth.

With 30Apr12 NAV/share at $0.2509, and a Net Cash/share of some $0.137 (backed by a huge $115.0m net cash reserve!), and as it is reasonable to expect Popular to deliver steady business growth and also at least sustain its present level of profits in the near term, I guess Mr Market may be tempted to re-rate Popular's share price - last done (24Aug12) $0.24 - higher, and given enough time, may be even a lot higher!

I think it is also relevant to note that Popular now has a share buy-back manadate......
http://info.sgx.com/listprosp.nsf/07aed3...200242afe/$FILE/AR-Circular_2012.pdf
, which was approved by shareholders on 24Aug12 (last Friday).

I now look forward to the coming $0.008/share Final dividend for FY12 (vs. $0.006/share for last FY11), which will be paid on 26Sep12, with 'XD' date fixed for 7Sep12 (next Friday).

Q113 (Jul) results will be out on 10-Sep.

Revenue and Profit will likely be lower than Q112 (last year) as there'd been no new sale of Property. For Q112, under Property, Revenue = $19.3M ; PBT = $3M.

Retail & Distribution should be higher, due to more stores, especially in Malaysia. But, it'll likely cover for only part of the shortfall coming from the Property segment. But, there may have been some 'Advance Buying' in Malaysia as their BB1M (RM200 Book Vouchers for 1.3M tertiary students) expired on 30-Apr-12. If so, then Revenue from Malaysia side will have some negative impact. The unknown for me would be the S'pore eg. Prologue @ Ion and HK stores, but I'm biased positively here. The dark horse would be the 'Publishing & e-Learning'.

Overall, I'm nett negative bias. I imagine it could also be the reason why no Shares Buy-Back had been initiated. Let's see after xd on 7-Sep and Q1 results on 10-Sep.

(30-08-2012, 11:14 PM)KopiKat Wrote: Q113 (Jul) results will be out on 10-Sep.

Revenue and Profit will likely be lower than Q112 (last year) as there'd been no new sale of Property. For Q112, under Property, Revenue = $19.3M ; PBT = $3M.

Retail & Distribution should be higher, due to more stores, especially in Malaysia. But, it'll likely cover for only part of the shortfall coming from the Property segment. But, there may have been some 'Advance Buying' in Malaysia as their BB1M (RM200 Book Vouchers for 1.3M tertiary students) expired on 30-Apr-12. If so, then Revenue from Malaysia side will have some negative impact. The unknown for me would be the S'pore eg. Prologue @ Ion and HK stores, but I'm biased positively here. The dark horse would be the 'Publishing & e-Learning'.

Overall, I'm nett negative bias. I imagine it could also be the reason why no Shares Buy-Back had been initiated. Let's see after xd on 7-Sep and Q1 results on 10-Sep.

Q1 Results are out.

It's of course still profitable, but worse than I expected (was expecting it to be better than Q111 ie 2 years back). Extracts from Pg 12 onwards,


Statement of Comprehensive Income

Group Turnover decreased by 16% to $119.1 million for the first quarter ended 31 July 2012 (“1QFY13”) as compared to the corresponding quarter ended 31 July 2011 (“1QFY12”). Profit before tax (“PBT”) decreased by 32% to S$8.7 million in 1QFY13 as compared to 1QFY12. Net Profit attributed to shareholders of the Company decreased by 36% to $6.6 million in 1QFY13 as compared to 1QFY12.

No turnover was recognised for the Property Development division in 1QFY13. Higher turnover and PBT recorded in 1QFY12 were mainly due to the sale of units in “18 Shelford”. Excluding results from the Property Development division for both periods, Group Turnover would have decreased by 2.3% while PBT would have increased by 3.1% in 1QFY13
as compared to 1QFY12.

The increase in operating expenses were mainly due to higher staff cost and foreign exchange losses which was partially offset by lower advertising and marketing expenditure incurred in 1QFY13 as compared to 1QFY12.


Retail and Distribution Division

1QFY13 Retail and Distribution turnover decreased 2.7% to S$99.1 million. The lower turnover was mainly due to decrease in sale of concessionaire multimedia products in Singapore and closure of 2 large stores in Hong Kong in the prior year.


Publishing and e-Learning Division

Publishing & e-Learning turnover decreased by $0.5 million or 2.5% to $20 million.


Property Development Division

No turnover was recognised in 1QFY13 as compared to S$19.3 million recognised in 1QFY12. The construction of Ei8ht Raja is expected to be completed by early 2013.


Statement of Cash Flows and Statement of Financial Position

As at 31 July 2012, cash and cash equivalents stood at $133 million, a decrease of $13 million as compared to 30 April 2012. Net operating cash flows were mainly used in purchasing of inventories. The Group is in a net cash position of $101 million as compared against bank loans of $32 million.

As at 31 July 2012, total shareholders’ equity of the Group was S$218 million. Net Asset Value per share increased by 3% to 25.86 cents compared to 25.09 cents as at 30 April 2012.

Don't we love the BT headlines?

Popular Holdings Q1 profit falls 36% to $6.56m

Let's hope Q2 results continue to be weak and they don't sell any units at 18 Shelford... Otherwise, how to buy it at a lower price...

I happen to be at Popular Junction 8 this afternoon. It appears that the shop has just been refurbished. Overall I think they did a good job cos it dun look as 'messy' as it used to be. Things are organised neatly by section - mobile accessories, books, assessment books, magazines,stationary etc. The counter area is especially nice. It more spacious and spot a LED TV playing Popular ads like Popular vouchers and Popular Card membership details. There was a long queue but it was moving along efficiently.

I dun visit as many Popular stores so I dun know if this is the first 'renovated' store or whether they are planning to implement the 'look' throughout its retails stores. I think they should because it no longer look like a 'Spore Chinese bookstore' (if you know what I mean)

They have renovated United Square one outlet too. It looks as good as Junction 8.