Tuesday, 13 November 2007

FJ Benjamin FY08 Q1 result

Today, FJ Benjamin announces 1st quarter result for FY08. CIMB and Kim Eng both maintain a buy on the company.

Key highlights:
Revenue and net profit growth 43% and 33%
Gross margin increased from 37% to 42%
Rental cost jumped 96% yoy with new store opening

My view is the management is still doing all they can to growth the company. Increase the brand they managed, move the in house brand RAOUL to higher level, and together with coming Singapore tourism boom(or even Asia). There are still plenty room for growth. At current price, it is trading at FY08 forward PE 18. Given volatile market condition, buy only if a good price emerged.

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