1.Retail | Waiting for the sales season
OVERWEIGHT - Maintained
Author(s): Erwan TEGUH, Linda LAUWIRA
Consumer confidence dipped in Apr, although retail sales held firm. Confidence may remain shaky given imminent fuel price hikes. If ensuing inflation from fuel price increases is manageable, we think confidence should rebound and retail sales improve. Retailers’ expansion plans remain on track, with plenty of new stores in 2Q-3Q13. Share prices outperformed the market, reflecting investor confidence. We stay Overweight, although the sector’s valuation, 31x FY13 and 23x FY14 P/E, leave little room for error. Our top pick is Ramayana; our top sell is Aces.
What You Should Do
Share prices continue to do well, with selected stocks outperforming the market in excess of 10% over the past month alone. For the five stocks in our universe, earnings growth is projected at 30% in FY13 and 33% in FY14, respectively. Valuation to growth is attractive, the key to our unchanged Overweight call on the sector.
SECTOR COMPARISONS :
1.ACES-Underperform-Tp 870
2.LPPF-Outperform-Tp 14,300
3.MAPI-Outperform-Tp 9,000
4.MDRN-Outperform-Tp 1,200
5.RALS-Outperform-Tp 1,800
CORE P/E (x): CY2013 : CY2014
1.ACES : 33.2 : 26.4
2.LPPF : 33.2 : 23.0
3.MAPI : 29.5 : 23.2
4.MDRN : 41.0 : 25.6
5.RALS : 21.1 : 18.3
Indonesia Average : 30.6 : 22.9
(27 MEI 2013)
Tidak ada komentar:
Posting Komentar