Courts Asia

Courts Asia: Unrated note by SCB. Key points cited were that Courts Asia is a leading retailer of electrical products, IT products and furniture in SG (No 1 market share) and Malaysia (No 2), according to the co. Courts manages its own consumer finance business – it extends credit for up to 60 months to select customers for a fee. Mgt believes this is a key competitive advantage as its competitors typically outsource this business to third parties. Courts plans to enter the Indonesia market, with its first store expected to open in 2014. Grp trades at 10x FY14 P/E vs Regional retail plays of 22x.