Challenger Technologies

[natnavi]

Challenger this kind of company got no value add at all one. Over price compare to SLS, rent kana bully by landlord, selling lousy china oem low end electronics and underpay all those poorly train desperate cannot find job new grads as "product consultants" etc

please do your home work before u say rent kanna bully by landlord
rents are only 4% of their revenues
you will be surprise with the bargaining power they have

Challenger this kind of biz got super low GP margin, any cost if measure as % of revenue will be some small % number. The rent as % of GP is much higher and any rent increase will hit profit big time as seen in latest Q1.

You better do your homework first before act big and talking down to others.

HI franko.yank, I've always thought that any retail company that has a profit margin of 4-5% is pretty good.

May be you could share what is a good profit margin for a good retail company. If you could even enlighten me of a few listed companies that have profit margins that you consider good, that would help justify your case.

[CityFarmer]

The discussion is fruitful, but the tone is a bit too "high". Let's tone it down a bit for the benefit of all. Thanks

Just a reminder

Regards
Moderator (CF)

[kopitescouser]

With challenger everywhere in Singapore and over 500k members and a profitable business with no debt. What are the chances of a takeover by a foreign company or whatsoever. Haha


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[dydx]

With challenger everywhere in Singapore and over 500k members and a profitable business with no debt. What are the chances of a takeover by a foreign company or whatsoever. Haha


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IMHO, pretty good , given enough time..

[kopitescouser]

Divested. Sales is really bad this 2 months. But challenger is doing everything they can to save the day. Stocks become lesser and staff incentive drops, Etc. Come back another day. Still a better stock than courts


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[muns]

Hi guys, just wondering how is Challenger selling electronics getting such a high margin compared to Courts.

Courts indicated in public data that electronics was their lowest margin sector, yet Challenger seems to be getting a consistent 4-5% net profit margin?

Is this mainly due to their Valore line of products? Anyone knows how much does Valore contribute to their overall sales and/or profits (They don't really disclose much breakdown in the notes, just wondering if anyone has spoken to their management before).

Thanks

___________________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com

[newborn1000]

Probably because courts sell different type of electronics, eg TVs

More bulky stuff like printers too.......

Challenger well......more portable items like controllers , portable disk-drives

So probably the product mix has differences.......anyways gross margin is a better indicator

[GPD]

After reading both Challenger and CourtsAsia threads, I have convinced myself that comparing Challenger to CourtsAsia is pointless since they pursued different strategies for their top and bottom lines.

You will conclude that Challenger is a better buy any day when comparing to Courts but is Courts really a retailer just like Challenger?

[muns]

After reading both Challenger and CourtsAsia threads, I have convinced myself that comparing Challenger to CourtsAsia is pointless since they pursued different strategies for their top and bottom lines.

You will conclude that Challenger is a better buy any day when comparing to Courts but is Courts really a retailer just like Challenger?

Hi GPD, I totally agree with you that Courts and Challenger are 2 different animals. In my opinion, Courts is more like a credit company that's reliant on their retail arm for operations.

The main reason I tried to compare their electronic segment was because for both companies, the level of public data breakdown is quite low and alot of figures seem to require us to guesstimate and for this instance I was trying to guesstimate only the electronic segment as Challenger would be a pure play in this segment. As you mentioned, I totally agree that due to the different structures, we can't really compare them as a whole

___________________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com

[theasiareport]

With challenger everywhere in Singapore and over 500k members and a profitable business with no debt. What are the chances of a takeover by a foreign company or whatsoever. Haha

This is actually an amazing statistic. Singapore has about 5+ million people... so that's slightly under one in ten. Huge network effect.

The only other company I know with an equally impressive customer base is Popular.