FJ Benjamin

[kennynah]

if 12% yield....5 years...ROI...sounds interesting...

[la papillion]

Hi K, just now was nudged to find out more about the net margins of branded goods. Net margins is the net profit generated per dollar of revenue earned. FJben had a net margin of around 4%, so this means that for every dollar of good sold, FJben earned $0.04.

Coach had a net margin of 34%, LV had a net margin of 13%, Gucci around 19%. I can't find Hermes.

So much about the branding of FJben

[kennynah]

noted...their margins are low....i suppose it could be that they are no more than a branded goods distributor..and i suppose distribution business margins are usually not higher than the brand owners. they do have an in-house brand, u pointed out, which is Roaul...but that's not quite in the same league as Gucci, LVs, Adidas, etc... they sell their business shirts for <S$150 but even so, for this price, one will have choices already...so, i cant imagine they do so well at their paragon and other retail stores. i believe their bulk of their sales should really come from their presence at the Changi terminals.. if so, then beyond the usual cyclicals of consumer purchases, they are next subject to tourists figures... just TOL...anyways, i wont buy this company's shares.

[la papillion]

noted...their margins are low....i suppose it could be that they are no more than a branded goods distributor..and i suppose distribution business margins are usually not higher than the brand owners. they do have an in-house brand, u pointed out, which is Roaul...but that's not quite in the same league as Gucci, LVs, Adidas, etc... they sell their business shirts for <S$150 but even so, for this price, one will have choices already...so, i cant imagine they do so well at their paragon and other retail stores. i believe their bulk of their sales should really come from their presence at the Changi terminals.. if so, then beyond the usual cyclicals of consumer purchases, they are next subject to tourists figures... just TOL...anyways, i wont buy this company's shares.

Insightful thoughts, K (for a while, I thought I'm talking to a business analyst) I've never stepped into Raoul and never will buy their shirts. I've got pple saying that Raoul is top 10 brand in singapore, with fjben holding the most market shares for their brands. Hmm...if that doesn't translate into higher net profits, so much for the branding.

Haha, me also won't buy into FJben, unless they really drop so cheap, grab a bit also no harm right? like bet 4D like that loh

[helios]

I calculated the NAV, it's 0.245 cts per share. But to be conservative, let's value the inventories at 50% of it's balance sheet value (why? I think 50% sales at Guess or Raoul would be very nice!), I'll get a bastardised NAV of $0.165 there. At this price, the PE is around 6x. Dividend yield will rise up to 12%.

dear pappy,

the 50% warehouse bargain did materialised [the spring/ summer stock] during the GSS days. they put up sales outlets in raffles city place area to target the PMEBs.

also, this year, they have relocated their HQ [from Orange Grove Road] to Science Park. Not sure what happen to their iconic building, was it sold?

NAV of $0.165 ... same as chart story ...

[helios]

>>> Marketing News:

Fashion retailer F J Benjamin (FJB) has expanded the remit of wholly-owned Malaysian sudsidiary F J Benjamin Lifestyle (M) Sdn Bhd CEO Angie Chong to include CEO duties at Singapore subsidiary FJ Benjamin Lifestyle Pte Ltd as well. The move comes at a time when the organisation seeks to drive the growth and profitably of its recently acquired Gap and Banana Republic businesses in Singapore and Malaysia (as reported in Marketing's February edition - San's comment: sorry, i can't find the Feb issue in my basket - can check when does their asia-pac franchise rights expire?).

FJB Group CEO Frank Benjamin hailed Chong -- named by The Edge Malaysia in its December edition as one of Malaysia's top female corporate leaders -- for helping build the company's fashion and timepiece businesses in said country, voicing his confidence that she would perform similarly in cultivating the Gap and Banana Republic brands as well.

Chong's role includes overseeing all marketing and A&P activities on both brands, key to the organisation's attempts to drive the opening of 30 stores in both territories by 2010. In her stint as head of F J Benjamin in Malaysia, Chong spearheaded the growth of brands such as Guess?, La Senza, Raoul and Girard-Perregaux in the country.

"Gap and Banana Republic are brands that people just love, and we're excited at the new store concepts that we've seen and the excellent international merchandise for both brands," said Chong. "All the ingredients for making these brands a success in Singapore and Malaysia have come together nicely."

Source: Marketing-Interactive.com, April 2007.

[la papillion]

I calculated the NAV, it's 0.245 cts per share. But to be conservative, let's value the inventories at 50% of it's balance sheet value (why? I think 50% sales at Guess or Raoul would be very nice!), I'll get a bastardised NAV of $0.165 there. At this price, the PE is around 6x. Dividend yield will rise up to 12%.

dear pappy,

the 50% warehouse bargain did materialised [the spring/ summer stock] during the GSS days. they put up sales outlets in raffles city place area to target the PMEBs.

also, this year, they have relocated their HQ [from Orange Grove Road] to Science Park. Not sure what happen to their iconic building, was it sold?

NAV of $0.165 ... same as chart story ...

Hmm, how concidental that the support level is also at 0.165. But the support is so old already, still valid?

Not sure about their change of HQ though...never really followed their story. I do know a bit of their GAP/Banana republic business. They mentioned about opening the following stores (according to brands) in FY08:

1. Guess (71)
2. La Senza (35)
3. Raoul (30)
4. Gap (19)
5. Celine (9)

From their plan to set up more guess and la senza, it seems that guess and la senza are their most profitable brands. For Raoul, they already mentioned about expanding the brand overseas. So far, I've not seen much advert on Raoul (it's highly likely because I never watch TV nor read magazines). Are they going to open one big concept store (like GAP in suntec city) in the Ion ochard? Wondering about the profitability of banana republic in singapore

[qxing78]

FJ is a sound company, but perhaps outlook is not so bright at this moment.
I think management is quite prudent, and they do have a few prominent institutional investor like Tecity-Ms Chew, Peter Lim and Aberdeen fund (which is quite known for their solid stock picks like Robinsons, Straits Trading).

The next 2 years will be challenging and time for them to consolidate their operations.
Not vested.

[millionairemind]

Published September 4, 2008
Peter Lim raises stake in FJ Benjamin
$3.9m purchase takes his holding in retailer to 16.58%
By ARTHUR SIM

FORMER 'remisier king' Peter Lim has forked out $3.9 million to raise his stake in retailer FJ Benjamin from 14.12 per cent to 16.58 per cent.

FJ Benjamin's net profit fell 31 per cent to $14.8 million, but the company said in August it still planned to open 14 stores across the region in the next year.

Mr Lim - ranked Singapore's seventh-richest man by Forbes Asia magazine, with an estimated worth of US$1.1 billion - acquired 13,951,000 shares in the open market on Sept 2.

A statement by FJ Benjamin on the Singapore Exchange (SGX) website shows Mr Lim's deemed interest in the company increased from 2.69 per cent to 5.15 per cent. His direct interest remained at 11.43 per cent.

Mr Lim's deemed interest in FJ Benjamin is through companies in which he has stakes. One of these is SGX-listed Rowsley.

Commenting on the acquisition, a Rowsley spokesman said: 'The share price of FJ Benjamin has fallen recently because of weak market conditions and not because of its fundamentals, which remain strong. At current levels, we see a good buying opportunity because of the attractive PE and high dividend yield.'

Based on FJ Benjamin's share price of 28 cents on Sept 2, Mr Lim would have paid $3.9 million to raise his stake 2.46 per cent.

Mr Lim's move follows the purchase of six million FJ Benjamin shares on Aug 27 by company founder Frank Benjamin, whose deemed interest rose from 5.48 per cent to 6.54 per cent.

In August, FJ Benjamin announced turnover of $342.4 million for the financial year ended June 30, up 33 per cent year on year.

Revenue from its fashion business rose 45 per cent to $226.3 million and contributed 66 per cent of total turnover.

Net profit fell 31 per cent to $14.8 million, but FJ Benjamin said it still planned to open 14 stores across the region in the next year.

The company also said it had a strong balance sheet, low gearing and improving cash flows that allowed for the acquisition of new brands. It added that it was in negotiations to expand into two new markets in the new financial year through franchising.

[helios]

The company also said it had a strong balance sheet, low gearing and improving cash flows that allowed for the acquisition of new brands. It added that it was in negotiations to expand into two new markets in the new financial year through franchising.

Seemed that all these are to raise their growth capital.

one should check on their south-east asia franchising rights, & which Brands they are capitalising ... guess and la senza? coz more peripheral stores might not necessarily increase marketshare; & we have yet to see FJ Ben's differentiation on vertical and horizontal markets.

shall wait and see their duplexes concept in Ion Orchard.

i think, the CEO is 'conservative' on ónline shopping-commerical portal ... do not know why.