Courts

Courts: Maybank KE 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, implies an upside of 63.7%. 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.