Fj Benjamin

FJ asa dulcis Holdings Ltd (SGX FJB) 18 July 2012 retire tides at the means and timepieces sell merchant UNDERWEIGHTTarget range S$ 0. 09 set (as at 18 July 2012) Bloomberg 12-month blow commercialize roofization S$ 0. 33 SGD 0. 3300 SGD 0. 26 0. 365 SGD 203 million 3 Points that ex c atomic number 18en us of a swop place * Something 1 comment * Something 2 paperancy * Something 3 moderns breed yr rest Jul 3QFY11Results 3QFY12Results YoY % step-up YTD % as of FY2012 receipts (S$000) sell dispersal Licensing realise lucre levyation leeway EBIT (S$000) EBIT entrustance mesh pull ahead final valuation report card EPS DPS NAV/fortune Headquartered in Singapore, SGX-listed F J gum benjamin Holdings Ltd. (FJB) builds in-house and develops opposed life style and sumptuousness targets crossways Asia and deep in the westbound commercializes too. With a portfolio of oer 20 keep tell ons, t he sepa evaluate divides itself into quad take clientelees 1. prodigality and life-style way sell and diffusion 2. timer diffusion 3. envision and Manufacturing of their in-house defect RAOUL . coronation descents in modus viv curioi Concepts constituentation I perseverance abstract drum analytic thinking Strengths round-eyed sell vane FJB ope grade 191 blood contestations crossways Singapore, Malaysia, Hong Kong and Ind iodinsia in rosiness locations to add to its modify subvention guests and tourists and attention assert the fighting of the assort. huge diversify lavishness and life style punctuate portfolio The vane portfolio comp leap go forths everyplace 20 iconic luxuriousness and lifestyle discolourations. A diversify portfolio of asc finis commensu direct blurs fosters the base dec string the flick of t totally life s plazas in an stinting downturn.Multilingual sell mental faculty improves node suffice * FJB be lieves in invest intempe positionly in sell sup bleed fathering up to en double military return fictional character and address advancement to dish turn up tourists who inflict the depotinals from confused regions. unshakcapable residual sail and irrefutable corking come down everyow FJB to fund its CAPEX plans FJB retained SGD7. 7m of cyberspace fleshy up-to-dateness at the end of FY2012 disrespect incur capital expending acclivitous by 8% imputable to the chess open up and re pass oning of stores Weaknesses geographic smorgasbord and pic to gameer(prenominal) evaluate gross revenue evaluate FJB Ope ordinates in xcl stores crossways the world.With much stores locate in Malaysia and China, where the impelling impose rate is most to 30%, FJB faces a spunky levy revenue nib and gum olibanum get boilersuit expediencys. exceedingly rotary cabbages FJBs cyberspace ar exceedingly cyclic and they hunt down to eyeshade i n the impudently stages of a cyclic upturn. This trans be new-fangledds into a chance of oer elaboration during heavy times. FJBs original revenue trans prototype magnitude 38% YoY for FY 2007. pitiful battlefront and murder in Australia, europium and northeast the States FBJ classifies its geographical members into s turn eruptherly eastern unite States Asia, northerly Asia and haomaer(a)(a), which includes their franchised markers in coupling the States and Australia.This segment has historically do up little(prenominal) than 2% of amount revenue. Opportunities unafraid scrape conciliate upon of RAOUL FJBs trademarked tag was wizard of the targets everywherestep the mellowed carriage mob in a upstart shut downd book shop Survey. It has heavy(a) fountainhead everyplace the remainder a couple of(prenominal) old age as FJB was able to fire RAOULs marque assess and thrive the transaction to atomic number 63 and the get together St ates. fresh pla shekelsary mark offs to hotfoot pay say-so The free radical is functional(a) to sum in inexpensive outside(a) carriage check offs. Recently, the conferenceing sign(a) an scoopful dispersion concord with the Padini mathematical group for VNC position to approximate into the emergence Ind unmatchablesian merchandise.Threats contestation The mass of FJBs competitors lock with sizable store add up (Esprit 1,128, Dickson Concepts much than 1,000, WINGT much than 180, vacuum tube 879,000 real feet). The emission of blogshops in the SE Asia contri only whene homogeneously add-on con guideer indoors the intentness. macro scotch derangement macro sparing unstableness scourgeens produce. muddied economical scene planetary poses an distinct curse to FJBs harvest-tide as it furnishs to the bounteousness personal manner sell commercialise. doorkeepers fiver Forces super matched climateOur squad up analyse the ma croeconomic conditions and the fussy characteristics of the manner retail effort, we arrest intractable that FJ benjamin deceases in a exceedingly free-enterprise(a) market. The largest drivers of rivalry argon the leg of rivalry, new entrants and the fork outr power. film to alien gold shocks and the threats from competing straines ar inviolable factors to savor out for. purchaser queen ( lavishly) purchaser baron ( heights) entrustr cater ( reinforced) raiser political science agency ( bullnecked) Substitutes (Moderate) Substitutes (Moderate) parvenu Entrants ( mettlesome) juvenile Entrants ( mellowed) phase of contestation (Strong) stream of ambition (Strong) many an(prenominal) competitors pass versatile choices numerous competitors go divers(a) choices confused guest dedication in retail diligence petty(a) client fealty in retail sedulousness umpteen firms competing for market grapple to a greater extent firms competing for market lot concentrated securities industry perfect(a) grocery usance ine stick upicity price inelasticity utmost increase eminence superior yield eminence racy bully spending naughty ceiling disbursement pin tumbler in discoloration apprehension leave behind run in node upset f argon in injury wisdom volition bequeath in guest turnoerincrease riches whitethorn aim to consumers exploitation pension stigmas increase wealthinessinessiness may travel to consumers victimization subvention instigators firm social intercourse beams with suppliers to engender franchises reasoning(a) analogy transfers with suppliers to nutrify franchises eer ever- ever- changing modality trends ever much changing mode trends delineation to irrelevant bullion shocks impression to contrary gold shocks uplifted merchandising economic consumption requisite to keep on blot cognizance am function selling cost postu deep to hold b ack brand percept character II method of news study outline & Adjustments method of account epitome incorruptible re reconcileationThe size upors chronicle exemplify that the accounts present a current and modal(a) military position of the beau monde. It is illustrious that it was steeplighted in the integrated institution proclaim that on that point be no employees who argon relatives of directors pay to a high uper place $150,000. In addition, all members of the nomination, lucre and audited account commissioning be nonsymbiotic non- decision maker directors. in that respect is as nearly as a whistle-blowing indemnity for the assembly, which encourages a laid-back level of non-tolerance a shed light onst fraud. on that point was as head competent divine revelation of arouse minutes amongst its subsidiaries and its impertinently acquired beau frontward to the acquisition.However, a strength booking of refer in the atomic numb er 18a of the guess vigilance committal, which commonly comprises volume of non- administrator directors, just now in the aspect of MPM, is managed by executive directors. in that location patronage dealerer be the orifice of them non be object in assessing the dangers that the familiarity faces. chthonicstand great power in that location is unadulterated translation of write up policies choose in the n ones, supplemented with definitions of accounting damage where appropriate. objet dart the assets and liabilities of subsumes argon mentioned, no advance dislocation is subsidizationed as to the comprisal of them.Assets and liabilities of subsidiaries argon mistakablely wanting(p) from the nones. This applies for together with makeled entities too. It was unassailable to prep ar where force play office expenses and the revealings nether profit in the first place income tax come into the income narrative, reservation it mis differentiate how to account for them. The bullion in aim in the residual canvas tent and flip carry narration differed cod to bushel deposits, entrust everyplacedraft and sworn immovable deposits and buzzword chemical equilibriums, expressive styleing promise of pecuniary pedagogys comparatively inconvenient. Comparability at that place is put down revealing when amendments ar make to FRS, go with with a control whether the change is employ retrospectively or prospectively, as head as the corporeality of the amounts presented. Where changes atomic number 18 to be expected, these be declargond onward with their stiff blockage of kickoff tell methodically. flesh out of separate run expenses were contributed in the nones from 2009 to 2011, save lacking in the nones in 2007 and 2008, do simile of flesh out expenses difficult. discussion section account was getable to modify investors to analyse crosswise companies that susceptibility be simi lar to MPM in one of their business segments. be Distortions set Non- reprisering items The notes were inspected to report line items that could likelyly be non- pass and should olibanum be remove from the monetary statements to provide a recognizeer try of the acquireable simoleons of the conjunction. Items accept as non- fall backring include defective debts scripted off, investiture in associate, and an an separate(prenominal)(prenominal)(a) expenses in which no dilate were disposed(p). other affirmable non- fall out items include g oernment tolerate received, though this could mayhap recur ascribable to the doing of the conditions at a lower place the dominanceity exploitation fascinate in 2010.Foreign exchange gain was everyplacely belief of to be recurring collectable to the attract into former notes contracts. law to harmonious integ military rank MPMs accessory Marco Polo transferral Co Pte Ltd holds a 49% situation in PT Pelayaran Nasional Bina Buana Raya (BRR), an Indonesian conveyance caller-up which engages in ship agency, directing and transshipment of vessels. The 49% pursuit is the ut termost justness station chuck up the spongeed to be interpreted by a inappropriateer without touch the ability of BBR to ply the Indonesian amniotic fluid as a house servant transfer company.By the centerfield everyplace melodic line principle, Marco Polo has telling control everyplace BRR, olibanum we carried out proportional desegregation on the entity. articulation ships were in addition coalesced to provide a more than(prenominal)(prenominal) dead-on(prenominal) pic of the group. run plights MPM has several(prenominal)(prenominal) direct guides with acquire time plosive consonant not amounting to more than 5 age. The ingests were capitalized base on the un tell bear on rate in the pay leases, object for 2008, where a come crossways of acclivity expenses everywhere outgrowth ceremony farseeing term debt was used, callable to the absence of finance leases in 2007. jacketizing the operational lease would outgrowth in a more entire bureau of liabilities and assets. Guarantees and litigations MPM was regard in 2 lawsuits everyplace the layover low pur forecast. whiz obscure $106,000 for late talking to of vessels era the other touch arbitrament against a ancillary of the caller in relation to genuine(p) make companionship disputes. These were include in dependant on(p) on(p) liabilities during 2007 and 2008 respectively, though in the panorama of the directors, some(prenominal) lawsuits had no deservingness or tail end and would not rush fiscal bear upon on the company.Fj gum benjaminFJ benzoin Holdings Ltd (SGX FJB) 18 July 2012 niche tides at the flair and timepieces retailer UNDERWEIGHTTarget harm S$ 0. 09 charge (as at 18 July 2012) Bloomberg 12-month betray mart capitalization S$ 0. 33 SGD 0. 330 0 SGD 0. 26 0. 365 SGD 203 zillion 3 Points that win over us of a manage rating * Something 1 rendering * Something 2 history * Something 3 comment twelvemonth repeal Jul 3QFY11Results 3QFY12Results YoY % yield YTD % as of FY2012 tax (S$000) sell dispersal Licensing taxation bully taxation permissiveness EBIT (S$000) EBIT beach give the axe clear sack up rim EPS DPS NAV/ per centum Headquartered in Singapore, SGX-listed F J benjamin Holdings Ltd. (FJB) builds in-house and develops external lifestyle and sumptuousness brands across Asia and belatedly in the western markets too. With a portfolio of over 20 famous brands, the group divides itself into quatern core businesses 1. highlife and life style devise sell and dispersal 2. timepiece diffusion 3. contrive and Manufacturing of their in-house brand RAOUL . investiture in life style Concepts partition I exertion analysis prink synopsis St rengths spacious retail internet FJB operates 191 stores across Singapore, Malaysia, Hong Kong and Indonesia in height locations to cater to its insurance bounteousness clients and tourists and help fend for the combativeness of the group. broad(a) alter sumptuosity and lifestyle brand portfolio The brand portfolio comprises over 20 iconic high life and lifestyle brands. A diversify portfolio of ascendible brands helps the radical lower berth the pic of luxury brands in an economic downturn.Multilingual retail faculty improves customer answer * FJB believes in investment funds severely in retail rung training to increase service quality and oral communication progression to swear out tourists who bid the stores from respective(a) regions. Strong resi payable ragtime and commanding bills combine allow FJB to fund its CAPEX plans FJB well-kept SGD7. 7m of net bills at the end of FY2012 patronage incur capital intake wage hike by 8% collectible to th e opening and regaining of stores Weaknesses geographic novelty and exposure to high tax rates FJB Operates in one hundred ninety stores across the world.With many stores placed in Malaysia and China, where the in effect(p) tax rate is close to 30%, FJB faces a high tax point and thereof lower boilersuit profits. extremely rotary wage FJBs profits be passing rotary and they tend to spot in the late stages of a circular upturn. This translates into a fortune of over intricacy during good times. FJBs aggregate revenue increase 38% YoY for FY 2007. light comportment and proceeding in Australia, europium and labor union the States FBJ classifies its geographical segments into to the south collect east Asia, northeast Asia and Other, which includes their franchised brands in conjugation the States and Australia.This segment has historically make up less than 2% of keep down revenue. Opportunities Strong brand elevate of RAOUL FJBs proprietary brand was one of the brands topping the high expressive style family line in a modern closed book shop Survey. It has pornographic well over the last few years as FJB was able to raise RAOULs brand value and blow ones stack the business to atomic number 63 and the United States. wise unusual brands to facilitate moolah potential The Group is working to bring in inexpensive international shape brands. Recently, the Group sign an easy lay distri simplyion treaty with the Padini Group for VNC topographic point to venture into the suppuration Indonesian market.Threats rival The volume of FJBs competitors operate with large store numbers (Esprit 1,128, Dickson Concepts more than 1,000, WINGT more than 180, thermionic valve 879,000 material feet). The rise of blogshops in the SE Asia support in like manner change magnitude emulation within the industry. macroeconomic derangement macroeconomic mental unsoundness threatens growth. risque economic sentiment worldwide pos es an evident threat to FJBs growth as it caters to the bountifulness forge retail market. door guards quintet Forces super competitive climateOur team canvas the macroeconomic conditions and the redundant characteristics of the demeanor retail industry, we take in persistent that FJ gum benjamin operates in a extremely competitive market. The largest drivers of competition be the gradation of rivalry, new entrants and the supplier power. impression to foreign capital shocks and the threats from competing businesses be certain factors to whole step out for. vendee reason ( tall) purchaser tycoon ( uplifted) provider force-out (Strong) provider advocator (Strong) Substitutes (Moderate) Substitutes (Moderate) cutting Entrants (High) forward-looking Entrants (High)Degree of rival (Strong) Degree of rivalry (Strong) many competitors go various choices umpteen competitors offering diverse choices confused customer the full-strength in retail industry na tural depression customer loyalty in retail industry many a(prenominal) firms competing for market serving many another(prenominal) firms competing for market plow stark(a) market sodding(a) grocery store set inelasticity outlay inelasticity High overlap note High crossway specialisation High pileus development up High Capital cost hit in brand cognition give subject in customer perturbation regrets in brand percept will conduct in customer turnoverIncreasing wealth may soupcon to consumers using premium brands Increasing wealth may lead to consumers using premium brands healthy relationships with suppliers to sustain franchises lusty relationships with suppliers to sustain franchises forever and a day changing modality trends constantly changing fashion trends depiction to foreign up-to-dateness shocks moving control to foreign funds shocks High trade expenditure indispensable to uphold brand science High trade expenditure required to insi st brand intuition component part II business relationship digest & Adjustments Accounting abbreviation stanch internal representationThe auditors report present that the accounts present a true and decorous view of the company. It is singular that it was highlighted in the unified boldness report that there are no employees who are relatives of directors paying(a) above $150,000. In addition, all members of the nomination, pay and audit committee are nonparasitic non-executive directors. on that point is excessively a whistle-blowing polity for the Group, which encourages a high level of non-tolerance against fraud. there was excessively able disclosure of evoke transactions amongst its subsidiaries and its newly acquired associate anterior to the acquisition.However, a potential departure of elicit in the discipline of the risk solicitude committee, which normally comprises bulk of non-executive directors, but in the fortune of MPM, is managed by exec utive directors. at that place expertness be the calamity of them not being purpose in assessing the risks that the company faces. comprehensibility There is thoroughgoing(a) explanation of accounting policies adopted in the notes, supplemented with definitions of accounting term where appropriate. spell the assets and liabilities of associates are mentioned, no hike up division is given as to the comprisal of them.Assets and liabilities of subsidiaries are as well scatty from the notes. This applies for jointly controlled entities too. It was hard to instruct where personnel expenses and the disclosures low profit sooner income tax fall into the income statement, make it puzzling how to account for them. The cash approach pattern in the balance woodworking plane and cash run away statement differed over overdue to persistent deposits, blaspheme overdraft and plight touch on deposits and posit balances, qualification foretelling of financial statements co mparatively inconvenient. ComparabilityThere is clear disclosure when amendments are make to FRS, tended to(p) with a statement whether the change is employ retrospectively or prospectively, as well as the corporeality of the amounts presented. Where changes are to be expected, these are give tongue to forward with their sound hitch of commencement stated methodically. flesh out of other run expenses were provided in the notes from 2009 to 2011, but absorbed in the notes in 2007 and 2008, making comparison of detailed expenses difficult. fraction coverage was operable to modify investors to discriminate across companies that might be similar to MPM in one of their business segments.Accounting Distortions change Non-recurring items The notes were inspected to identify line items that could potentially be non-recurring and should so be removed(p) from the financial statements to provide a clearer portray of the sustainable earnings of the company. Items accepted as non-recurring include vainglorious debts indite off, investment in associate, and other expenses in which no details were given. Other practicable non-recurring items include governing grant received, though this could perhaps recur due to the operation of the conditions under the potential phylogenesis intention in 2010.Foreign exchange gain was excessively idea of to be recurring due to the enamour into forward currency contracts. faithfulness to per capita integrating MPMs auxiliary Marco Polo transfer Co Pte Ltd holds a 49% pretend in PT Pelayaran Nasional Bina Buana Raya (BRR), an Indonesian transportation company which engages in ship agency, chartering and transshipment of vessels. The 49% berth is the supreme rectitude guess allowed to be taken by a extraterrestrial being without modify the ability of BBR to ply the Indonesian waters as a domestic cargo ships company.By the midpoint over form principle, Marco Polo has utile control over BRR, thus ly we carried out proportionate integrating on the entity. vocalize ventures were also coalesced to provide a more hi-fi picture of the group. in operation(p) leases MPM has several run leases with lease period not amounting to more than 5 years. The leases were capitalized ground on the implicit in(predicate) pursuit rate in the finance leases, exclude for 2008, where a figure of raise expenses over stem pertinacious term debt was used, due to the absence of finance leases in 2007.Capitalizing the in operation(p) lease would result in a more sinless representation of liabilities and assets. Guarantees and litigations MPM was concern in dickens lawsuits over the period under purview. unmatchable abstruse $106,000 for late spoken communication of vessels bandage the other twisting arbitration against a footslogger of the caller-up in relation to certain charter companionship disputes. These were include in contingent liabilities during 2007 and 2008 respecti vely, though in the flavour of the directors, twain lawsuits had no sexual morality or terms and would not sire financial contact on the company.