FJ Benjamin

FJ Benjamin: 3Q11 results. Revenue +24% YoY to $89.1m on the back of strong consumer spending. Revenue contribution from China increased 135% and mgt sees the country as a strong driver for future growth. Revenue from SE Asia grew a more modest 21%. In terms of business segment, Fashion grew 20.9% YoY and Timepiece increased 30.2% YoY. Margins remained stable at 43.3%...

Net profit +6.5% YoY to $3.2m. Net margins however came down to 3.6% from 4.2%, due to Forex losses from the depreciating HKD resulting in lower growth in SGD terms, and higher tax arising from lower carry forward losses and group relief. Exceptional losses of $0.6m from closure of 2 subs in Australia also weighed down on profits...

Mgt remains positive on the outlook for its key markets in N. and SE Asia, and will continue to capitalize on the strong consumer sentiment and increase the productivity of the stores in its network. But remains mindful of inflationary pressures and will continue to manage costs.
Share currently trades at 17.6X P/E, Standard Chartered maintains Outperform with TP $0.55.