Parkson Retail Asia

Parkson Retail Asia: CIMB resumes Coverage with O/p Call and $1.88 TP. Note that growth in Indonesia will ramp up in FY14, driven by the launch of the first ‘Parkson’ branded department stores. The larger store network will also boost margins and same-store sales growth (SSSG). However, earnings are unlikely to excite in the near-term. House rresume coverage on Parkson Retail Asia (PRA) with an Outperform call. $1.88 TP is based on 22x CY14 P/E (vs. previous 20x), which is on par with the average of department store retailers. The stock’s catalysts are earnings delivery in Indonesia, a turnaround in Vietnam and higher-than-expected SSSG.