Robinson Department Store
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Hit by associate's write-off Outperform - maintained Share price: Bt47.25 Target price: Bt50.00
Robinson Department Store Plc (ROBINS)
The disappointing 4Q11 profit was caused by damage sustained by one of its associates due to the floods but such losses will not recur and are expected to be fully recovered by insurance in CY12. Operations-wise, business was good as usual. FY11 core profit was 96% of our forecast. We finetune our FY12-13 EPS estimates but raise our DCF-based target price (3.5% LTG, 10.8% WACC) on higher store assumptions from CY13 onwards. We maintain our Outperform call.
