Popular

Popular: 1QFY15 net profit increased 76.8% y/y to $9.4m while topline increased 5.9% to $141.4m due to higher turnover achieved by the Retail and Distribution organic growth and higher sales from the Malaysian government’s book voucher program, and Publishing and e-Learning Divisions from increased adoption from primary and secondary school textbook series in Hong Kong. Gross margins improved to 21.3% (+0.6ppt) on stricter cost measures. Bottom line was also improved by an absence of impairment losses recognized on two 18 Shelford units last year. Management remains cautious, in light of unexpected economic upheavals in the global economy, as well as the continuing regulation in the property sector. Meanwhile, manpower cost is not expected to ease in the immediate term. Popular is currently trading at 4.9x annualized 1QFY15 P/E