Sheng Siong: 1st set of reported results. 3Q rev at $146.3m -9.3% yoy with net profit at $6.6m -50.9% yoy. Decline in rev was due to closure of two main outlet Ten Mile Junction and Tanjong Katong outlets at Nov-end 2010 and Aug-end 2011 and general fall in same stores sales of 1%. Co improved on gross margins currently at 23.0% attributed to better sales mix and lower costs and bulk rebates.
Net profit was impacted by fall of 84.2% in other income due to absence of disposal of investments and div income as well as a lower rental income after closure of Ten Mile Junction.
Co expects industry to be competitive with a known competitor reported to be opening 10 more outlets before end of 2011. EPS came in at 0.56c with 9M at 1.99c. On an annualized basis co is trading at approx current 15.8x P/E.
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