Table of Contents
Investment Summary .........................................................................................3
Case for a Premium .......................................................................................3
Parkson (3368 HK, 1-OW, PT: HK$73)............................................................5
GE (3308 HK, 1-OW, PT: HK$8.50) ..............................................................6
Intime (1833 HK, 1-UW PT: HK$5.90).............................................................6
New Millennium New Growth.........................................................................7
Fashion Chains Deserve a Premium to Other Chains, in our view............................9
Top Picks ...................................................................................................12
Extensive Network (led by Parkson) .................................................................13
Operating Scale (led by Parkson) ...................................................................16
Expansion Model (led by Parkson) ..................................................................19
Customer Loyalty (led by GE) .........................................................................21
Balance Sheet Strength (led by Parkson)...........................................................22
Human Resources (led by Parkson) ..................................................................23
Conclusion.................................................................................................24
Investment Risks .............................................................................................25
Valuation......................................................................................................26
Price to Earnings .........................................................................................26
Discount Cash Flow .....................................................................................28
Company Section ..........................................................................................30
Parkson (3368 HK, 1-OW, PT: HKD73)..........................................................30
GE (3308 HK, 1-OW, PT: HKD8.50) ............................................................31
Intime (1833 HK, 3-UW, PT: HKD5.90)..........................................................32