Courts Asia

Courts Asia: Maybank-KE maintains BUY with $1.06 TP (reduced from $1.15) pegged to 14x earnings. House hosted a NDR with Courts to confirm our views on the retail scene in Singapore and Malaysia. Believe the share price has already priced in overall weakness in demand. Barring a longer-than-expected closing of the JEM store, the trough should be seen in 1QFY14 (2QCY13). Going forward, expect things should improve on (1) a loosening in credit policy to improve sales, particularly in Malaysia, (2) a short term boost in sales from iPhone 5S and (3) the maiden store opening by FY3/15 in Bekasi, Indonesia to boost sales.