Special Situations: Lion Group
BUY Parkson Holdings (PKS MK);
BUY Parkson Retail Group (3368 HK)
PKS MK: MYR 2.96; 3368 HK: HK$2.41
April 9, 2014
We recommend buying Parkson Holdings, a Malaysian holding company with controlling stakes in Parkson Retail – a HK listed retail group with operations in China, and in Parkson Retail Asia, a Singapore listed retail group, with operations in Malaysia, Viet Nam and Indonesia. While the holding company discount is not significant (10%), we view the stock as one of the better ways to benefit from increased consumption throughout Asia, and particularly so in China.
We also recommend to buy Parkson Retail Group (3368 HK), and would also recommend Parkson Retail Asia if it was not illiquid. We believe that Parkon Holdings could buy the minorities in both of its listed subsidiaries.
FULL REPORT ATTACHED