Epicentre Holdings

[CityFarmer]

The Board of Directors (the “Board”) of Epicentre Holdings Limited (the “Company”, together
with its subsidiaries, the “Group”) wishes to announce that, based on the management
accounts, the Group is expected to report a loss for the half year ended 31 December 2013
(“HY2014”).

Ref: http://infopub.sgx.com/FileOpen/EpiCentr...eID=273813

[felixleong]

they keep reporting losses, think this company may go into chapter 11 within a few years

[CityFarmer]

they keep reporting losses, think this company may go into chapter 11 within a few years

It was once a favorable counter demanding high PE, due to its Apple product stores in Singapore and the region

[momoeagle]

I remember questioning another blogger (I forgot who) on his purchase of EpiCentre.

The business has little barrier to entry, and subjected to competition by Apple Store itself, and all the cheap China websites. Its competition also include Challenger, Courts, Harvey Norman and Best.

With such heavy competition, I seriously doubt the business will be a going concern in the long run. It may actually do better as an online shop and reduce the shop spaces it has in the different shopping centres, which are heavy in costs and contributing to profits of REITs.
My comments are based on the business and not on the numbers.

(Not vested)

[felixleong]

if I never remember wrongly, I think peter lim has a small stake in this sinking ship

[Investmentrealm]

I remember questioning another blogger (I forgot who) on his purchase of EpiCentre.

The business has little barrier to entry, and subjected to competition by Apple Store itself, and all the cheap China websites. Its competition also include Challenger, Courts, Harvey Norman and Best.

With such heavy competition, I seriously doubt the business will be a going concern in the long run. It may actually do better as an online shop and reduce the shop spaces it has in the different shopping centres, which are heavy in costs and contributing to profits of REITs.
My comments are based on the business and not on the numbers.

(Not vested)

And apple controls the selling price. They cannot gives discounts or promotions.
Other competitors like gain city gave freebies like screen protector , wonder if epicenter gives.

To make it worse, apple own online stores actually have discounts at times. I saw it once on 10th jan, quite a significant discounts. Wonder if they allow other distributors to give.

[arriyana]

And the margin from Apple products are fairly narrow due to price control by Apple. A bulk of their margin comes from accessories, which has even lower barrier of entry so the margin is likely to erode further as time goes by.

Furthermore, Apple has a policy of transacting in USD, thus exposing EpiCentre to currency risk.

[Investmentrealm]

And Apple may fall anytime. so many other examples of Giant companies falling.
To survive, epicenter has to Venture into other products n not rely on just apple products.

No vested interest in epicenter

[Tiggerbee]

The Company wishes to announce that it has today entered into a binding term sheet ("Term Sheet") with Healthtrends Medical Investments Ltd and its subsidiaries (collectively "Vendors" and individually "Vendor") in relation to the proposed acquisition of the Vendors' respective interests in their operating units in Singapore, Malaysia, Hong Kong and Vietnam ("Proposed Acquisition"), namely Eastlife Pte Ltd, Maxglobe Pte Ltd, The Sloane Clinic (Plastic Surgery) Pte Ltd, The Sloane Group Sdn Bhd, HealthTrends Specialists Pte Ltd, Dermagenesis Sdn Bhd, Astique CliniCentral Ltd, Green Jade Limited, and Truong Giang Investment and Trading Joint Stock Company (collectively "Target Companies").

The Target Companies are engaged in the businesses of:
(a) Medical aesthetics and cosmetic surgery;
(b) Primary care and medical wellness; and
© Distribution of medical products and solutions.

The aggregate consideration for the Proposed Acquisition is S$100 million ("Purchase Consideration"), based on, amongst others, the financials (including the combined proforma profit after tax of the Target Companies for the financial year ending 31 December 2014 being S$6.2 million), business prospects, track record and competencies of the Target Companies.
The Purchase Consideration is to be satisfied by the issue and allotment of an aggregate of 298,635,484 new ordinary shares in the capital of the Company ("Consideration Shares"), at an issue price of S$0.334854 per Consideration Share, on completion of the Proposed Acquisition ("Completion").

The Consideration Shares to be issued and allotted to the Vendors (which in turn will be distributed in specie to the shareholders and convertible loan investors of the Vendors) comprise approximately 76.2% respectively, of the enlarged issued share capital of the Company after Completion but prior to any compliance placement.

The Purchase Consideration may be subject to adjustment dependent on the final valuation of the Target Companies.

http://infopub.sgx.com/FileOpen/EHL%20-%...eID=327926

[Tiggerbee]

Not sure why the SGX link doesn't work. Here's the businesstimes link.

Epicentre Holdings: The Apple brand product retailer is in a reverse takeover deal to acquire businesses from Healthtrends Medical Investments and its subsidiaries for S$100 million via the issuance of new shares. The firm will issue 298.64 million new shares - making up 76.2 per cent of its enlarged share capital - at about 33.49 Singapore cents apiece to Healthtrends Medical and its subsidiaries for their operating units in Singapore, Malaysia, Hong Kong and Vietnam.

http://www.businesstimes.com.sg/companie...ics-player