FJ Benjamin

FJ Benjamin: 2Q12 results in-line with expectations. Rev at $109.9m, +18% yoy, while operating expenses rose by 23% yoy to $45.1m, lowering operating margins by 1.35ppts. This was cushioned by a $2.2m fx gain from the strengthening of the US$ and HK$ against the Swiss franc, bringing net profit to $4.6m, +16% yoy.

Both the fashion and timepiece segments continue to achieve double-digit growth in Asia, at 19% and 16% YoY respectively. In North Asia, sales grew 29% YoY to $24.5m; Hong Kong sales grew 9% while sales in China saw a 44% rise. In 2Q, North Asia made up 22% of FJB’s total sales, with Southeast Asia accounting for 77% (-2ppt qoq).

Over the past year, RAOUL has more than doubled its sales to the US and Europe. The brand is now sold in 39 stores in Europe, excluding Russia, and in major department stores in the US. It continues to receive endorsements from young Hollywood stars.

Going forward grp reiterate its plans to expand into the ASEAN region and is targeting to own 192 outlets by end-FY Jun12. The group recently set up four outlets – La Senza, RAOUL, Guess and Gap – in Johor Premium Outlet. Kim Eng maintains Buy with $0.42 TP.