Courts

Courts: Credit Suisse has an unrated note on its meeting with mgt. Notes Courts SG (~70% net sales) is committed to opening 1 new store/year to reach target of 18 stores. Courts SG has been increasing the mix of credit in recent quarters; delinquency rates remain relative low at 3.0%. In Malaysia (~30% of sales, 62 stores) while macro issues have resulted in some near term demand softness, mgt expects to open 5-6 new stores every year to maintain the growth trajectory. Mgt is looking forward to regional expansion to drive the next leg of growth – with main focus on South Asia. Indonesia is high on priority – Courts will open its biggest store yet at 140,000 sq ft in Bekasi, Eastern Jakarta, to be operational from 2014.