OSK Ups Parkson Target To MYR7.42; Keeps Buy

OSK Research raises Parkson Holdings (5657.KU) target to MYR7.42 (based on 24X P/E for China operations, 15X P/E for Malaysia operations, and 12X P/E for Vietnam and other stores) from MYR6.31 after rolling forward valuations to FY12 from FY11. The house says 1Q earnings should be in line with consensus; "earnings growth momentum would be strong, riding on the aggressive expansion plan which is to open seven to eight outlets per year for the next three years," OSK says. While fundamentals remain unchanged, the house says its net profit forecasts for FY11 and FY12 are trimmed slightly by 3.0%-4.0% to MYR350.5 million and MYR422 million, respectively, due to minor adjustments. The house maintains a Buy call. The stock is up 0.7% at MYR5.71.