Challenger Technologies

[CityFarmer]

you have to wonder why the price is not moving up if its really that much better than karin. what risks is the market discounting.

Karin looks to me like another stockist and a stockist behave differently compare to a retailer.

the yield you provided looks tad high and their payouts do fluctuate.

Challenger Tech issued 1-to-2 bonus issue in 2011. It means at least 50% increase in share value, even the market price remains the same.

Karin Tech is under my watch-list. It's NPM is much lesser due to its component distributor business. Asset turn-over is much lesser than Challenger Tech. It is a good company, but i will rather bet on Challenger Tech.

[felixleong]

yeah we had the bonus issue in 2011, which was great

I have been holding challenger for 3 years plus already, the dividends also not bad
currently still got 5-6% like that

btw yesterday I was in town walking around and going to movies

I walked in to "epic life" by epic center...
think they should had named it "epic fail" instead

they were selling some very weird products, like monopoly by hasbro
big bean bags, lady's bag...

dunno you guys got enter before epic life store before or not, got one is at Taka, just beside epic centre store

what are they trying to establish here, to diversify out of apple products?

[Salty]

Hi Felix / Cityfarmer

Do you know if challenger buy all their IT stuff and resell them, or do they just sell the shelves to supplier like supermarkets?

[CityFarmer]

Hi Felix / Cityfarmer

Do you know if challenger buy all their IT stuff and resell them, or do they just sell the shelves to supplier like supermarkets?

Base on clues from financial reports, there is no such business model.

[felixleong]

Hi Felix / Cityfarmer

Do you know if challenger buy all their IT stuff and resell them, or do they just sell the shelves to supplier like supermarkets?

Based on my findings, I do not know of them selling shelves to suppliers.

From what I know they have procurement department buying in bulk from suppliers, so they bear the inventory.
The good thing I like about them is the procurement people KPI (key performance indicator) is based on the turn around of the products brought in.

As the base salary is not much, their variable salary depends on the KPI. This brings them in line with bringing in good products that sells well and fast, resulting in a very good inventory turn over for challenger.

I give you one example, the next time you walk into a challenger, go to the shelve that sells PC games, you will only notice the top selling or popular titles, they will not waste shelve space on items that can't sell.

Also for certain products, challenger has "Buyer Power", when they get the good from supplier no need to pay first
if got sell then pay supplier, balance of goods not sold can be returned to supplier

hope this info is helpful to you ^^

[dydx]

By looking at Challenger's business evolution over the years and reading his speech delivered to the graduates of Singapore Polytechnic on 21May12.....
http://www.sp.edu.sg/graduation2012/speeches2.html
, I think it is fair to say that CEO Loo Leong Thye as a driven and proven business entrepreneur and management talent in the IT products merchandising and retail space is both time-tested and crisis-tested. Most importantly, he has learned and acquired the critical wisdom of staying prudent in business expansion and in finances from his own experiences.

Challenger is probably already the largest and most established - and likely also the most profitable - player within the IT products retail industry in Singapore and, given more time and some luck, the company stands a good chance of repeating a similar success in the Peninsula Malaysia market.

I must add that I have been a happy shareholder of Challenger for many years now, enjoying the steady growth of the business and the twice-a-year dividends, as well as the steady increase in its market cap and share price over the years.....
http://finance.yahoo.com/echarts?s=573.S...=undefined;
Isn't it nice to note that in share price alone Challenger has out-performed the SG market average (as measured by STI) by a whopping 150% over the last 5 years!

[felixleong]

By looking at Challenger's business evolution over the years and reading his speech delivered to the graduates of Singapore Polytechnic on 21May12.....
http://www.sp.edu.sg/graduation2012/speeches2.html
, I think it is fair to say that CEO Loo Leong Thye as a driven and proven business entrepreneur and management talent in the IT products merchandising and retail space is both time-tested and crisis-tested. Most importantly, he has learned and acquired the critical wisdom of staying prudent in business expansion and in finances from his own experiences.

Challenger is probably already the largest and most established - and likely also the most profitable - player within the IT products retail industry in Singapore and, given more time and some luck, the company stands a good chance of repeating a similar success in the Peninsula Malaysia market.

I must add that I have been a happy shareholder of Challenger for many years now, enjoying the steady growth of the business and the twice-a-year dividends, as well as the steady increase in its market cap and share price over the years.....
http://finance.yahoo.com/echarts?s=573.S...=undefined;
Isn't it nice to note that in share price alone Challenger has out-performed the SG market average (as measured by STI) by a whopping 150% over the last 5 years!

yeah I totally agree ^^

[shn]

Thanks. Very useful information. I have made a bulk purchase of an electronic gadget from Challenger a few years ago. I think the discount was about 10% - but I cannot really remember. So, apart from retail, they also sell to corporation. I was hesitant to invest in Challenger a few years ago thinking that it operated in a very competitive industry. However, their results proved me wrong. Their revenue, PBT and cash flow are growing, and ROE is an amazing 32.8%. On top of all these, it has been generous with dividend payout. From what I hear here, Challenger does have strength in its operation management.

Looking at the attached table extracted from its annual report, this is really a growth stock!

Vested.

   

[CityFarmer]

By looking at Challenger's business evolution over the years and reading his speech delivered to the graduates of Singapore Polytechnic on 21May12.....
http://www.sp.edu.sg/graduation2012/speeches2.html
, I think it is fair to say that CEO Loo Leong Thye as a driven and proven business entrepreneur and management talent in the IT products merchandising and retail space is both time-tested and crisis-tested. Most importantly, he has learned and acquired the critical wisdom of staying prudent in business expansion and in finances from his own experiences.

Challenger is probably already the largest and most established - and likely also the most profitable - player within the IT products retail industry in Singapore and, given more time and some luck, the company stands a good chance of repeating a similar success in the Peninsula Malaysia market.

I must add that I have been a happy shareholder of Challenger for many years now, enjoying the steady growth of the business and the twice-a-year dividends, as well as the steady increase in its market cap and share price over the years.....
http://finance.yahoo.com/echarts?s=573.S...=undefined;
Isn't it nice to note that in share price alone Challenger has out-performed the SG market average (as measured by STI) by a whopping 150% over the last 5 years!

I concur. It is a fast growing stock in my holding list, which mean buy-and-hold forever as long as fundamental stays

[NTL]

Being a shareholder for the past 3yrs, I am also enjoying the fruit of investing in this company.