Robinson Department Store

Robinson Department Store Plc (ROBINS)
 

ROBINS has beaten our forecast and market expectations for the third consecutive quarter. We view the 21% share price dip over the past three months as a buying opportunity as the negative impact from the floods should be short-lived. 9M11 profit formed 72% of our CY11 forecast vs. 68-70% range in the past three years. Nevertheless, we cut CY11 EPS by 3% due to the floods, and fine-tune CY12-13 up by 2-3% on lower taxes. Our DCF target price is increased slightly, with OUTPERFORM maintained.