Fj Benjamin Free Essays

FJ Benjamin Holdings Ltd# (SGX: FJB) 18 July 2012 Receding tides at the style and timepieces retailer UNDERWEIGHTTarget Price: S$ 0. 09 Price (as at 18 July 2012) | Bloomberg| year Range| Market Capitalization| S$ 0. 33| SGD 0. We will compose a custom article test on Fj Benjamin or on the other hand any comparative point just for you Request Now 3300| SGD 0. 26 †0. 365| SGD 203 Million| 3 Points that persuade us regarding a Sell rating: * Something 1 Explanation * Something 2 Explanation * Something 3 Explanation Year End: Jul| 3QFY11Results| 3QFY12Results| YoY % Growth| YTD % as of FY2012| Revenue (S$’000)| | Retail| | Distribution| | Licensing| | Gross Profit| | Net Margin| | EBIT (S$’000)| | EBIT Margin| | Net Profit| | Net Margin| | EPS| | DPS| | NAV/Share| | Headquartered in Singapore, SGX-recorded F J Benjamin Holdings Ltd. (FJB) works in-house and creates worldwide way of life and extravagance marks across Asia and as of late in the Western markets as well. With an arrangement of more than 20 praised brands, the gathering separates itself into four center organizations: 1. Extravagance and Lifestyle Fashion Retailing and Distribution; 2. Timepiece Distribution; 3. Plan and Manufacturing of their in-house brand RAOUL . Putting resources into Lifestyle Concepts Section I: Industry Analysis SWOT Analysis Strengths Wide retail arrange FJB works 191 stores across Singapore, Malaysia, Hong Kong and Indonesia in prime areas to take into account its excellent clients and travelers and help keep up the seriousness of the Group. Wide expanded extravagance and way of life brand portfolio The brand portfolio includes more than 20 notorious e xtravagance and way of life brands. An enhanced arrangement of versatile brands enables the Group to moderate the powerlessness of extravagance marks in a monetary downturn. Multilingual retail staff improves client assistance * FJB puts stock in putting intensely in retail staff preparing to expand administration quality and language capability to serve vacationers who visit the stores from different districts. Solid monetary record and positive income permit FJB to finance its CAPEX plans FJB looked after SGD7. 7m of net money toward the finish of FY2012 regardless of bringing about capital use ascending by 8% because of the opening and restoration of stores Weaknesses Geographic assorted variety and presentation to high assessment rates FJB Operates in 190 stores over the world. With numerous stores situated in Malaysia and China, where the successful assessment rate is near 30%, FJB faces a high duty bill and in this manner lower in general benefits. Profoundly repetitive profit FJB’s income are exceptionally patterned and they will in general top in the late phases of a repeating upswing. This converts into a danger of over development during great occasions. FJB’s all out income expanded 38% YoY for FY 2007. Poor nearness and execution in Australia, Europe and North America FBJ groups it’s geological fragments into South East Asia, North Asia and Other, which remembers their diversified brands for North America and Australia. This section has verifiably made up under 2% of absolute income. Openings Strong brand name of RAOUL FJB’s restrictive brand was one of the brands besting the high style class in an ongoing Mystery Shopping Survey. It has developed well in the course of the most recent couple of years as FJB had the option to raise RAOUL’s brand esteem and extend the business to Europe and the United States. New global brands to quicken income potential The Group is attempting to acquire moderate universal design brands. As of late, the Group consented to a select appropriation arrangement with the Padini Group for VNC shoes to wander into the developing Indonesian market. Dangers Competition most of FJB’s contenders work with enormous store numbers (Esprit †1,128, Dickson Concepts †more than 1,000, WINGT †more than 180, Metro †879,000 square feet). The ascent of blogshops in the SE Asia include likewise expanded rivalry inside the business. Macroeconomic insecurity Macroeconomic flimsiness undermines development. Bleak monetary supposition overall represents an unequivocal danger to FJB’s development as it takes into account the top notch style retailing market. Porter’s Five Forces Highly serious atmosphere Our group broke down the macroeconomic conditions and the exceptional qualities of the design retail industry, we have confirmed that FJ Benjamin works in a profoundly serious market. The biggest drivers of rivalry are the level of contention, new contestants and the provider power. Presentation to remote cash stuns and the dangers from contending organizations are considerable elements to pay special mind to. Purchaser Power (High) Buyer Power (High) Supplier Power (Strong) Supplier Power (Strong) Substitutes (Moderate) Substitutes (Moderate) New Entrants (High) New Entrants (High) Level of Rivalry (Strong) Degree of Rivalry (Strong) Many contenders offering assorted decisions Many contenders offering various decisions Low client dedication in retail industry Low client dependability in retail industry Many firms vieing for piece of the pie Many firms vieing for piece of the overall industry Saturated Market Saturated Market Price inelasticity Price inelasticity High item separation High item separation High Capital Outlay High Capital Outlay Fall in brand discernment will bring about client turnover Fall in brand observation will bring about client turnover Expanding riches may prompt buyers utilizing premium brands Increasing riches may prompt purchasers utilizing premium brands Healthy associations with providers to continue establishments Healthy associations with providers to support establishments Constantly changing style drifts Constantly changing design patterns Exposure to remote money stuns Exposure to outside cash stuns High advertising consumption expected to keep up brand discernment High promoting use expected to keep up brand observation Section II: Accounting Analysis Adjustments Accounting Analysis †Faithful portrayal The auditors’ report showed that the records present a valid and reasonable perspective on the organization. It is significant that it was featured in the corporate administration report that there are no workers who are family members of executives paid above $150,000. Furthermore, all individuals from the designation, compensation and review advisory group are free non-official chiefs. There is additionally a whistle-blowing arrangement for the Group, which empowers a significant level of non-resistance against misrepresentation. There was likewise sufficient revelation of intrigued exchanges between its auxiliaries and its recently procured partner before the obtaining. Be that as it may, a potential irreconcilable circumstance in the region of the hazard the board council, which for the most part contains dominant part of non-official chiefs, however on account of MPM, is overseen by official executives. There may be the chance of them not being objective in evaluating the dangers that the organization faces. Understandability There is intensive clarification of bookkeeping strategies embraced in the notes, enhanced with meanings of bookkeeping terms where proper. While the advantages and liabilities of partners are referenced, no further breakdown is offered concerning the comprisal of them. Resources and liabilities of auxiliaries are likewise missing from the notes. This applies for mutually controlled elements as well. It was difficult to figure out where work force costs and the exposures under benefit before personal assessment fall into the pay explanation, making it confounding how to represent them. The money figure in a critical position sheet and income articulation varied because of fixed stores, bank overdraft and swore fixed stores and bank adjusts, making anticipating of budget reports generally badly designed. Similarity There is clear revelation when alterations are made to FRS, went with an explanation whether the change is applied reflectively or tentatively, just as the materiality of the sums introduced. Where changes are not out of the ordinary, these are expressed already with their successful time of initiation expressed deliberately. Subtleties of other working costs were given in the notes from 2009 to 2011, yet missing in the notes in 2007 and 2008, making examination of definite costs troublesome. Section detailing was accessible to empower financial specialists to think about across organizations that may be like MPM in one of their business fragments. Bookkeeping Distortions Adjusted Non-repeating things The notes were reviewed to recognize details that might be non-repeating and should in this manner be expelled from the fiscal reports to give a more clear image of the reasonable income of the organization. Things perceived as non-repeating included terrible obligations discounted, interest in partner, and different costs in which no subtleties were given. Other conceivable non-repeating things included government award got, however this might repeat because of the accomplishment of the conditions under the Capability Development Scheme in 2010. Remote trade gain was likewise thought of to be repeating because of the passage into forward cash contracts. Value to proportionate combination MPM’s auxiliary Marco Polo Shipping Co Pte Ltd holds a 49% stake in PT Pelayaran Nasional Bina Buana Raya (BRR), an Indonesian delivery organization which participates in transport office, sanctioning and transshipment of vessels. The 49% stake is the greatest value stake permitted to be taken by an outsider without influencing the capacity of BBR to employ the Indonesian waters as a household dispatching organization. By the substance over structure rule, Marco Polo has compelling power over BRR, in this manner we did proportionate solidification on the element. Joint endeavors were additionally united to give a progressively precise image of the gathering. Working leases MPM has a few working leases with rent period not adding up to over 5 years. Th