Wednesday, June 5, 2013

Xpress

Xpress: launches a new business concept under a new brand called “8 -->8 Biz Butler” (ie. open from 8am to 8 pm). Xpress will extend its current B2B business model to incorporate the larger B2C segment. The group’s existing print stations will be rebranded to provide a wider range of offerings beyond print mgt services to include: planning & mktg consultancy, editorial & contents creation, print media, corporate gifts, premium & events mgt, electronic printing & new media, business resource bridging, and delivery & logistics/ supply chain. It will target busy business executives. Xpress intends to proliferate the 8 --> 8 Biz Butler business model in the Asia Pac region through franchising particularly in the B2C sector. In today’s computerized and digital world, mgt believes the importance of traditional printing has softened, and to remain competitive, the group will engage in cross-media services. The group has been granted approval from IE Singapore to appoint consultants to develop its franchise framework. Xpress currently has a network of 38 print stations across 19 major cities in Asia Pac. The group targets to establish a global network of at least 100 stations by 2015. the top 6 mkts identified for the new 8 --> 8 Biz Butler concept are China, Malaysia, Vietnam, Cambodia, Taiwan and Thailand. The group has been seeing declining earnings since net profit peaked in FYJul09 at $13m, and was loss making in FY12. Investors may welcome the strategic shift as a proactive move on mgt’s part to turn the business around. At $0.05, the stock trades at 0.62x P/B.

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