Courts

Courts: 4QFY13 results out yday were largely uninspiring due to store rationalization in Msia, nevertheless Maybank KE believes the share price pullback (-7%) has created a good opportunity for investors to accumulate. Notes Courts trades at 11.7x FYMar14e P/E, against regional peers at 16.6x, yet it offers robust regional growth prospects. The house reiterates Buy with TP $1.49. Courts is counting on its big-box strategy of building stand-alone stores to boost growth. It has 72 outlets in Singapore and Msia, and plans to open a 140k sf retail centre in Indonesia next year, its first in the country. After that, the group may seek acquisitions and add a fourth market in possibly Philippines or Vietnam. Courts’ $125m bond sale last mth will help the group expand over the next 3 yrs with “confidence”.