Courts Asia

Courts Asia: Counter close to the dollar mark, up 1.5% today to $0.995. Since its listing on 15 Oct, Counter has gained 30%, and coming towards the end of the lock-up period of 6 months. Maybank KE recently initiated on Courts, noting that Group is an under-rated direct play on the ASEAN consumption story. A retailer of furniture and electrical goods, its consumer financing facility differentiates it in the areas of superior margins and market leadership. House initiates with a BUY, TP of $1.49. Maybank KE notes that Courts' unique in-house credit financing facility adds an alluring factor for investors, as it allows the facility to enjoy much higher margins than its competitors who rely on 3rd-party credit providers. Courts is able to tap into cheap funding to grow a non-retail income stream, and earn a lucrative spread.