FJ Benjamin – Riding on Growth

1. Last week, FJ opened the first Banana Republic store at Paragon Shopping Centre. It plans to set up 50 such stores in S’pore, M’sia and Indonesia by 2010.

2. March this year, FJ secured exclusive franchise rights for CELINE in S’pore, M’sia, Indonesia and Thailand.

3. Oct 06, FJ opened the first GAP in Asia (outside Japan) at VivoCity. In its 3Q07 results, GAP contributes 34% of the increase turnover to $65.7M. Now FJ added 3 more GAP stores at Wisma Atria, Centerpoint and Suntec City.

4. FJ owns 67% of St James Power Station.

5. Net Profit for 3Q07 up 114% to 3.3M

6. EPS 3Q07 increased to 0.87 cents from 0.54 in the same quarter last year. An impressive 61% increase.

7. FJ consistency:
Profit after tax: FY04= 1.994M (up 34%), FY05= 4.262M (up 114%), FY06= 10.171M (up 139%).
EPS: FY04= 0.7c (up 35%), FY05= 1.5c (up 114%), FY06= 3.53 (up 135%).
Dividend per share: FY04= 0.75c, FY05= 1.10c, FY06= 2.40.

With Formula 1 starting next year, IRs opening in 2-3 years, increasing tourist numbers, booming economy, FJ in well position to capture the increasing retail market.
For the past few weeks its share price has been range bound ($0.83- 0.92), this is most likely due do its convertible warrants which expired on 16 July. After the dilutive effect of the warrants fully absorbed, can expect the next breakout to coincide with the release of its full year results on end Aug. Price target $1.35.

Disclaimer: All shares recommendations in this Blog are my personal opinion. Readers are encouraged to do their own research before investing. Remember, it’s your own money! I will not be liable for any losses incurred.