RHB Research raised its fair value estimate on shares of Parkson Holdings Bhd to 5.32 ringgit from 4.90 ringgit, citing the retailer’s expansion plans.
Parkson shares were flat at 5.20 ringgit, while the benchmark composite index was down 0.07 percent at 1654.94.
Parkson’s operations in China will continue to be a key driver for the company’s prospects, with 8 to 10 stores opening annually in smaller cities, RHB said in a note on Monday.
The company’s operations in Indonesia is growing steadily and it plans to open stores in Cambodia and Myanmar in 2013, the brokerage said. In Malaysia, the firm’s wholly-owned shopping mall, KL Festival City, contributed to operating profit positively in 2012, RHB said.
However, Parkson’s shares could be hurt by a slowdown in consumer spending in China and if expenses on new stores and malls exceed expectations, it added. 1038 (0238) (Reporting by Siva Sithraputhran in Kuala Lumpur; Editing by Anand Basu; firstname.lastname@example.org)