Courts

Courts: good 4QFYMar13 results, in line with UOBK’s expectations. Topline rose 9.6% yoy, driven by an 11% yoy rise in sales in Spore, and 6% yoy rise in Msia. During the period, the group opened 5 new stores in Msia and 1 new store in Spore. In addition, Courts also refurbished and relocated a total of 12 stores across Msia and Spore. While ASP in Spore rose 8.2% yoy and in Msia rose 6.3%, gross margins dipped slightly to 31.5% in FY13 from 32.0% in FY12, due to a combination of lower sales of goods on credit (21.9% in FY13 vs 22.7% in FY12) and product mix. For this year, Courts intends to open 2 new stores in Singapore – Courts in Jen (Jun ’13) and Westgate (end 2013). In Msia, mgt is excited over the first “big-box” megastore in Bandar Sri Damansara, Klang Valley in Aug ’13. In Indonesia, mgt expects its biggest store (140k sf) in Bekasi, Jakarta, to be operational next year. Pending an analyst briefing today, UOBK places its Buy rating under review, given the sharp rise in share price that has reached its initial TP of $1.14 (based on 13x FY14e P/E).