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 subject 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. Structure 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 top notch clients and vacationers and help keep up the intensity of the Group. Wide expanded extravagance and way of life brand portfolio The brand portfolio involves more than 20 notori ous extravagance and way of life brands. An expanded arrangement of versatile brands enables the Group to alleviate the powerlessness of extravagance marks in a financial 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 visitors who visit the stores from different districts. Solid accounting report and positive income permit FJB to support its CAPEX plans FJB looked after SGD7. 7m of net money toward the finish of FY2012 regardless of acquiring capital consumption ascending by 8% because of the opening and repair of stores Weaknesses Geographic decent variety and presentation to high duty rates FJB Operates in 190 stores over the world. With numerous stores situated in Malaysia and China, where the viable assessment rate is near 30%, FJB faces a high expense bill and along these lines lower by and large 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 topographical sections into South East Asia, North Asia and Other, which remembers their diversified brands for North America and Australia. This section has truly made up under 2% of complete income. Openings Strong brand name of RAOUL FJB’s exclusive brand was one of the brands beating 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 grow the business to Europe and the United States. New universal brands to quicken income potential The Group is attempting to get reasonable worldwide style brands. As of late, the Group consented to a restrictive dissemination 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 additionally expanded rivalry inside the business. Macroeconomic precariousness Macroeconomic flimsiness compromises development. Inauspicious financial notion overall represents an express danger to FJB’s development as it takes into account the excellent design retailing market. Porter’s Five Forces Highly serious atmosphere Our group examined the macroeconomic conditions and the uncommon attributes of the design retail industry, we have discovered that FJ Benjamin works in an exceptionally serious market. The biggest drivers of rivalry are the level of competition, new participants and the provider power. Presentation to outside money stuns and the dangers from contending organizations are significant variables 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 reliability in retail industry Low client steadfastness in retail industry Many firms going after piece of the overall industry Many firms vieing for piece of the pie Saturated Market Saturated Market Price inelasticity Price inelasticity High item separation High item separation High Capital Outlay High Capital Outlay Fall in brand recognition will bring about client turnover Fall in brand observation will bring about client turnover Expanding riches may prompt shoppers 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 observation High showcasing use expected to keep up brand recognition 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 critical that it was featured in the corporate administration report that there are no workers who are family members of chiefs paid above $150,000. Likewise, all individuals from the selection, compensation and review board of trustees are free non-official executives. There is additionally a whistle-blowing arrangement for the Group, which empowers a significant level of non-resistance against misrepresentation. There was additionally sufficient divulgence of intrigued exchanges between its auxiliaries and its recently procured partner before the obtaining. In any case, a potential irreconcilable situation in the zone of the hazard the executives advisory group, which as a rule contains greater part of non-official chiefs, yet 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 exhaustive clarification of bookkeeping strategies embraced in the notes, enhanced with meanings of bookkeeping terms where suitable. While the advantages and liabilities of partners are referenced, no further breakdown is offered with respect to the comprisal of them. Resources and liabilities of auxiliaries are likewise missing from the notes. This applies for together controlled elements as well. It was difficult to figure out where work force costs and the revelations under benefit before personal duty fall into the pay proclamation, making it confounding how to represent them. The money figure in a critical position sheet and income proclamation varied because of fixed stores, bank overdraft and vowed fixed stores and bank adjusts, making determining of budget summaries moderately awkward. Similarity There is clear exposure 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 powerful time of initiation expressed systematically. Subtleties of other working costs were given in the notes from 2009 to 2011, however missing in the notes in 2007 and 2008, making correlation of nitty gritty costs troublesome. Section announcing was accessible to empower financial specialists to look at across organizations that may be like MPM in one of their business portions. Bookkeeping Distortions Adjusted Non-repeating things The notes were reviewed to distinguish details that might be non-repeating and should along these lines be expelled from the fiscal summaries to give a more clear image of the practical income of the organization. Things perceived as non-repeating included awful 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 money contracts. Value to proportionate union MPM’s auxiliary Marco Polo Shipping Co Pte Ltd holds a 49% stake in PT Pelayaran Nasional Bina Buana Raya (BRR), an Indonesian transportation organization which takes part 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 handle the Indonesian waters as a residential delivery organization. By the substance over structure guideline, Marco Polo has compelling authority over BRR, therefore we completed proportionate combination on the element. Joint endeavors were likewise merged to give an increasingly exact image of the gathering. Working leases MPM has a few working leases with rent period not adding up to over 5 years. Th