Parkson is a Malaysian brand whose business model revolves around the departmental store concept. It's operations are split into South East Asia and China. The former is listed as Parkson Retail Asia Ltd (PRA) in Singapore, the latter listed as Parkson Retail Group Ltd (PRGL) in Hong Kong. There is a third listing, of Parkson Holdings Berhad (Parkson Bhd) in Malaysia, holding 68% of PRA and 54% of PRGL.
Now, assuming Parkson Bhd does not have any other operations of significance nor does it have any assets/liabilities of significance of its own, is this a kind of company worth investing in?
When I look at the way it is valued by local sell side analysts, they use the following formula:
(68%PRA market cap + 54%PRGL market cap + net cash of Parkson Bhd) * 70% as holding company discount.
Is this a reasonable/logical way of valuing Parkson Bhd? Assuming you saw potential for reversal/undervaluation in the valuations of PRA and PRGL, and assuming you can only invest in Malaysian stocks, would you give Parkson Bhd a serious look, or discount it merely due to its status as a holding company?
Thanks!
Submitted April 24, 2017 at 10:39AM by learner1314 http://ift.tt/2psJZrK
