Challenger Technologies

[dydx]

On 1Oct110, Challenger made an announcement on having secured a new lease in Suria KLCC for its 2nd retail outlet in Malaysia which is scheduled to begin operations around Apr11.....
http://info.sgx.com/webcoranncatth.nsf/V...F002A6FA7/$file/NewLeaseLocatedInKL.pdf?openelement

Together with the 3 other new leases in Bedok Point, Plaza Singapura, and nex@ Serangoon Central, announced earlier.....
http://info.sgx.com/webcoranncatth.nsf/V...40027FF22/$file/New_leases_Announcement_16_Jun_10_Final.pdf?openelement
http://info.sgx.com/webcoranncatth.nsf/V...D0035A9F9/$file/NewLeasesAnnouncement.pdf?openelement
barring unforeseen problems, Challenger plans to open a total of 4 new stores within the next 6 months, and this will definitely keep business volume - and hopefully also profits! - growing in FY10 and into FY11 at least.

While Challenger's 1H (ended 30Jun10)-FY10 results announcement showed a small 4% yoy decrease in NP to $5.79m.....
http://info.sgx.com/webcoranncatth.nsf/V...600179798/$file/SGXNET_1H2010_Challenger.pdf?openelement
a closer look will reveal that actually the underlying operating profit had continued to grow in 1H-FY10, as the higher NP of $6.04m for 1H-FY09 included a $913k forex gain (vs. a $157k forex loss in 1H-FY10) and a bigger "Job Credit" government subsidy (part of the $328k "Sundry Income").

Assuming a full-year NP of $12.0m for FY10 (vs. $10.96m in FY09), and based on Challenger's 230.139m issued shares (as at 30Jun10), EPS will come $0.052.

Based on today's closing share price of $0.41, Mr Market is now attaching a PER of 7.9x on Challenger. My own simple view is that the current market valuation is not demanding at all, considering Challenger always operates with a large - and growing! - nett cash reserve (30Jun10: $21.08m; equivalent to approx. $0.091/share), and the group's businesses are poised to enjoy further healthy and profitable growth in the forseeable future.

More info on this premier retail group.....
http://www.challengerasia.com/

[dydx]

Challenger has announced the planned opening of another new store in the new The Clementi Mall around Apr11.....
http://info.sgx.com/webcoranncatth.nsf/V...B00362E61/$file/New_Lease_Clementi.pdf?openelement

Challenger has also announced via its Singapore website that a total of 4 new stores - at Plaza Singapura, Nanyang Poly, NEX Serangoon, and Bedok Point - are scheduled for opening by Dec10.....
http://www.challenger.sg/index.html
This will raise the total number of Challenger stores in Singapore to 18 by end Dec10.....
http://www.challenger.sg/locations_challenger.html

Without any doubt, Challenger will emerge as the largest specialist retail chain store for IT products in Singapore.

[FFNow]

Hi dydx,

May I know which companies have u invested in so far?

[dydx]

Hi dydx,

May I know which companies have u invested in so far?

This question, I will choose not to answer, as I think it is unfair and unwise for me to compromise on my own interests. I will be quite happy to continue highlighting companies which I feel are worthwhile to look into or monitor on their evolution; and which I have done some research on and therefore am in the position to share something in this forum, especially after the companies have taken some corporate actions or have made some announcements.

[FFNow]

This question, I will choose not to answer, as I think it is unfair and unwise for me to compromise on my own interests. I will be quite happy to continue highlighting companies which I feel are worthwhile to look into or monitor on their evolution; and which I have done some research on and therefore am in the position to share something in this forum, especially after the companies have taken some corporate actions or have made some announcements.

Ok no problem dydx. It is thanks to your posts in Afralug that I invested in TMC and Kingsmen and they are doing well.

[bongster31]

hi,

i wento challenger the other day with the intention of getting an original apple ipad case. i also intended to buy the protective film n ask if they can paste it on the screen for me but they say there was no such service. one of the staff attended to me has almost zero knowledge abt ipad n its accessories, but was trying to sell me the non-original ipad case as they do not have the original in stock. most imptly, there is no sample for me to see n they do not allow the case to be taken out of the package. worst, he could not answer my queries on wat it looks like inside the package n needless to say i just left. 5 mins later, came across a ah beng" phone shop selling the non original case and film at 50% less than challenger shop. i gladly purchase them with the friendly "ah beng" helping me to paste the film over my new ipad.

i have no qualms paying for service but with the level of service provided at challenger, i seriously have second tot going back to them again, with my membership expiring next mth.

to add, just call th funan branch today with the intention to purchase a DDR2 Ram 1GB 667Mhz. was quoted 70+++ bucks while sim lim is selling 30++ bucks. queried them on the big price diff n was brush off n suggested to me to get them from sim lim instead! amazing...

regards,
bongster31

[yeokiwi]

Challenger is not meant for those are willing to do some research in item prices. Typically, SL square and Funan will offer better price in almost all the items.

But, there are enough of those that are not so price-sensitive to keep the business going.

[FFNow]

Challenger is not meant for those are willing to do some research in item prices. Typically, SL square and Funan will offer better price in almost all the items.

But, there are enough of those that are not so price-sensitive to keep the business going.

I concur that Challenger faces stiff competition from SLS and Funan which offer better prices. The moat for Challenger is very slim. I believe people still buy from Challenger as it's more convenient as it has many outlets comparing with going down all the way to SLS just to buy a small item.

[pianist]

i think even if challenger faces stiff competition, it is in the right industry and that should likely ensure its business going for sometime..the numbers do speak well for challenger as fas as i can see...revenue half year to half year comparsion shows an increase..as well as its gross profit margin..

for me i am happily vested at below $0.15 net of consistent dividends received regularly...

[Zelphon]

hi,

i wento challenger the other day with the intention of getting an original apple ipad case. i also intended to buy the protective film n ask if they can paste it on the screen for me but they say there was no such service. one of the staff attended to me has almost zero knowledge abt ipad n its accessories, but was trying to sell me the non-original ipad case as they do not have the original in stock. most imptly, there is no sample for me to see n they do not allow the case to be taken out of the package. worst, he could not answer my queries on wat it looks like inside the package n needless to say i just left. 5 mins later, came across a ah beng" phone shop selling the non original case and film at 50% less than challenger shop. i gladly purchase them with the friendly "ah beng" helping me to paste the film over my new ipad.

i have no qualms paying for service but with the level of service provided at challenger, i seriously have second tot going back to them again, with my membership expiring next mth.

to add, just call th funan branch today with the intention to purchase a DDR2 Ram 1GB 667Mhz. was quoted 70+++ bucks while sim lim is selling 30++ bucks. queried them on the big price diff n was brush off n suggested to me to get them from sim lim instead! amazing...

regards,
bongster31

U should go to Epicentre to purchase the protective film..
They will paste it for u...

Very professional..
I gave up trying to paste the film i bought myself for ipad and went epicentre and bought another film...

Good service...