Ng NG's comment on PARKSON

Ng NG's comment on PARKSON. All Comments

Ng NG

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KUALA LUMPUR (June 24): Parkson Holdings Bhd (KL:PARKSON), whose shares have climbed 24.4% since June 19, has a new substantial shareholder in Irelia Management Sdn Bhd.

According to Parkson’s bourse filings on Tuesday, Irelia Management acquired 78.3 million shares or a 6.815% stake in the department store operator via open market transactions between June 20 and 24.

No price tag was disclosed on the shares traded, however, based on respective closing prices on which the shares were traded, the block was valued at RM18.6 million.

Based on a filing with the Companies Commission Malaysia, Irelia Management is wholly owned by NTG Holding Ltd.

NTG Holding is the asset holding company of the NTG Strategy Fund SP offered by private equity and alternative asset management firm AEI Capital Group, according to NTG Holding’s website.

Parkson’s largest shareholder is its chairman and managing KUALA LUMPUR (June 24): Parkson Holdings Bhd (KL:PARKSON), whose shares have climbed 24.4% since June 19, has a new substantial shareholder in Irelia Management Sdn Bhd.

According to Parkson’s bourse filings on Tuesday, Irelia Management acquired 78.3 million shares or a 6.815% stake in the department store operator via open market transactions between June 20 and 24.

No price tag was disclosed on the shares traded, however, based on respective closing prices on which the shares were traded, the block was valued at RM18.6 million.

Based on a filing with the Companies Commission Malaysia, Irelia Management is wholly owned by NTG Holding Ltd.

NTG Holding is the asset holding company of the NTG Strategy Fund SP offered by private equity and alternative asset management firm AEI Capital Group, according to NTG Holding’s website.

Parkson’s largest shareholder is its chairman and managing director Tan Sri Cheng Heng Jem, with a 54.57% stake.

Shares in Parkson ended half a sen or 2% higher at 25.5 sen, valuing the company at RM286.87 million. Year-to-date the stock is up 18.6%.

Sri Cheng Heng Jem, with a 54.57% stake.

Shares in Parkson ended half a sen or 2% higher at 25.5 sen, valuing the company at RM286.87 million. Year-to-date the stock is up 18.6%.

8 months · translate ·

Previous replies (61)

Ricardo Siau

Result would be terrible without the 111m lease modification/termination income... however, management did a terrific job reining in costs

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Ricardo Siau

improving the operating margin from 4.6% to 6.8% and expanding the credit services are commendable

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Ng NG

PRG up 15% at open.
now up 24%

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Ng NG

my gut feel PHB may declare bonus, which could explain the reason why irelia is buying in

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Ng NG

parkson sale will be over soon!

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cheng

actually, the results is pretty good from the baseline of "China ops is struggling", Ricardo. The headline operating margins was at 13.1% (operating profit/total operating revenue) and assuming we strip off the lease termination income, the normalized operating margins will be at 7.4%. The headline operating margins was the 3rd highest quarter over the last 3 fiscal years. There is something else that is growing organically from the report - % of direct sales from total sales. It has reached 30%. It seems to me that private labels is doing really well in China and hence, PRA latest report showing that mgmt has started to expand the private labels too. Direct sales contribution to PRG has always been mid to high twenties while PRA is less than twenties. Private labels tends to have higher margins compared to concessionaire sales.

4 Like · 6 months · translate

cheng

PHB report is due this week. Lets see how is the performance and Irelia's actions thereafter.

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Vincent Wong

Irelia gogogo. Our New huge holder

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cheng

PRA and PRG moving up strongly again. PRA gap closed. What is brewing?

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Ng NG

added 36k shares at 0.235

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Ricardo Siau

dividend coming?

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cheng

possible but unlikely at the moment. Management response captured in AGM minutes did not reject explicitly the question of dividend for PHB.

2 Like · 6 months · translate

Ng NG

been a quiet week..... eagerly awaiting q2 results

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cheng

should be released by tomorrow. it will be the same thing to watch out for - in case of impairment exercise. If there are no surprises from impairment exercise, should be looking at single digit profit for PHB based on PRA and PRG parent/NCI ownership.

4 Like · 6 months · translate

cheng

Report was released earlier. The boss said "Single digit profit? You have underestimated the efficiencies that the company put in place. Its 10 mil profit; 2 digits" Lol, no pun intended.

5 Like · 6 months · translate

Ng NG

parkson q2 profit beat padini

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Vincent Wong

2mr show time?

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cheng

A safe 3 months time for Irelia to keep accumulating :)

3 Like · 6 months · translate

cheng

In August, the total retail sales of consumer goods reached 3,966.8 billion yuan, up by 3.4 percent year on year, or up by 0.17 percent month on month. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 3,438.7 billion yuan, up by 3.2 percent year on year, and that in rural areas stood at 528.1 billion yuan, up by 4.6 percent. Grouped by consumption patterns, the retail sales of goods were 3,517.2 billion yuan, up by 3.6 percent; the income of catering was 449.6 billion yuan, up by 2.1 percent. Sales of basic living goods and certain upgraded goods enjoyed sound growth. The retail sales of daily necessities, of grain, oil and food and of sports and recreational articles by enterprises above the designated size went up by 7.7 percent, 5.8 percent and 16.9 percent respectively. The effect of trade-in of consumer goods policy continued to manifest, with the retail sales of furniture, household appliances and audio-visual equipment, cultural and office supplies, and communication equipment by enterprises above the designated size up by 18.6 percent, 14.3 percent, 14.2 percent and 7.3 percent respectively. In the first eight months, the total retail sales of consumer goods reached 32,390.6 billion yuan, up by 4.6 percent year on year.

4 Like · 5 months · translate

cheng

MY: On the retail trade sub-sector’s performance, he said sales in non-specialised stores grew by 5.5% y-o-y to RM25.8 billion, mainly supported by higher sales in provision stores, mini markets, department stores, and supermarkets. https://theedgemalaysia.com/node/770235

5 Like · 5 months · translate

huathuat

irelia dump the shares ?

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Ng NG

time to load

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cheng

there is no announcement of change of interest for Irelia, huat2. hopefully not.

3 Like · 4 months · translate

Ricardo Siau

Parkson hk jumped 50% in 2 weeks; chinese market out of woods?

1 Like · 4 months · translate

cheng

Retail trade data looks good, Ricardo. Hopefully Irelia will be able to "pressure" BODs to take aggressive actions on non profitable stores to stop losses and preserve profits from profitable stores, reinvest the profits on profitable stores to keep up with the latest trends.

3 Like · 4 months · translate

cheng

In September, the total retail sales of consumer goods reached 419,7.1 billion yuan, up by 3.0% year on year. Specifically, the retail sales of consumer goods excluding automobiles reached 3,726.0 billion yuan, up by 3.2%. From January to September, the total retail sales of consumer goods reached 36,587.7 billion yuan, up by 4.5%. Specifically, the retail sales of consumer goods excluding automobiles reached 32,995.4 billion yuan, up by 4.9%.

4 Like · 4 months · translate

Ng NG

Irelia showing up ?

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cheng

Irelia guarding their investments :)

6 Like · 3 months · translate

Joey Low

It's great to hear that

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Ng NG

Irelia acquired close to 2million shares past 3 days. negligible amount for them

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cheng

Thanks, Ng. Close to 3mil shares :) Seems like Irelia will grab the tickets whenever it's below 0.22. Maybe that's their avg price. Every 1 cent equals to 920k running profit/loss for them :p

4 Like · 3 months · translate

Ng NG

yes Cheng, indeed close to 3million shares:-)

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Vincent Wong

I hold it for quite long. Hope it will spike very soon. At least double of share price now should be no problem

2 Like · 3 months · translate

cheng

PRG board's meeting on 20th Nov. PRG results will be released on the same day.

4 Like · 3 months · translate

cheng

PRG report this week and no profit warning issued by PRG so far.

4 Like · 3 months · translate

cheng

3rd consecutive profitable qtr for PRG in FY2025 - Profit from operations for 3Q2025 was RMB117.6 million. Profit from operations for 9M2025 increased by RMB91.8 million to RMB375.2 million as compared to the corresponding period last year of RMB283.4 million, representing an increase of 32.4%. Profit attributable to owners of the Company in 9M2025 was RMB23.4 million as compared to loss attributable to owners of the Company of RMB29.3 million in the corresponding period last year. Profit/(Loss) attributable to owners of the Company - The group recorded profit attributable to owners of the Company of RMB0.9 million in 3Q2025 and RMB23.4 million in 9M2025.

4 Like · 3 months · translate

Ricardo Siau

9 mth operating profit jumped 1100%, same store sales 2.2% up, operating expenses 1.9% down through lower staff costs from closing underperforming stores,
reduced depreciation from lease term changes and store closures and decreased asset impairment provisions... strategic restructuring focused on cost management, profitable locations and rental income diversification continues to yield results

3 Like · 3 months · translate

cheng

Thanks for the sharing, Ricardo. The ball is on Irelia's court since July when Irelia became the substantial shareholder.

2 Like · 3 months · translate

馬拉ck

北京parkson也結業了

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cheng

Irelia is one of the few subsidiaries of NTG and the key investor / owner behind NTG is AEI Capital. Only time will tell what makes Irelia/NTG decided to invest/continuously increasing its stake in PHB and what resources/expertise that NTG will contribute to PHB. What can be seen from PHB performance over the last few years is the mid tens ops margin and the past two qrs in 2025 showing ops margin at ~20%. One of the change reported by PRA last qtr is the investment on white labels. PRA's ops margin is pretty volatile over the last 3 years ~10% stdev while PRG's ops margin is pretty stable at ~5% stdev. PRG's revenue breakdown between concessionaire and direct sales during the same 3 years period is at 70:30 while PRA is at 80:20; direct sales has higher margins compared to concessionaire in general.

5 Like · 3 months · translate

Vincent Wong

Need to be very patient. Irelia goreng this stock for sure. Maybe good timing for them to goreng when release good qr

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cheng

Agreed with the patience required. Hopefully Irelia will be able to unlock the value of PHB leveraging its substantial shareholder status; check and balance / influencing BODs business directions.

1 Like · 3 months · translate

cheng

the report is out. lets see how market and Irelia react in the next few days :) I believed the performance has also included the penalty payable (rm7mil) from the lease termination announced back in Aug; expensed out.

1 Like · 3 months · translate

Ng NG

The group explained that in its immediate preceding quarter, the profits were higher because it included a one-off income of RM37mil arising from a lease modification.

Meanwhile, on its outlook, Parkson said it believes the year-end festivities and holiday seasons will drive higher shopper traffic across its retailing stores and deliver an encouraging operating performance.

“The group remains focused on implementing strategies to enhance sales productivity and strengthen gross margins, while c

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Vincent Wong

Malaysia market is bad now. Need to be more patients. Operator cnt do anything

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cheng

q4 and q1 festive/holiday seasons as Ng pointed out above.

4 Like · 3 months · translate

Ng NG

Cheng, PHB should return to annual profitability fye25, barring unforseen circumstances like impairment

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Ng NG

I think there is impairment earlier this year

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cheng

thanks for sharing, Ng. That is something beyond our controls :( What we can observe though (1) closure of non profitable stores in China is picking up momentum (2) renegotiating lease term as can be seen from the announcements (3) the discount rates used in 2024 is lower than 2023; lower discount rates higher VIU, higher VIU comparing to the carrying value means lower risk of impairment (4) action #1, #2 and #3 can lead to higher/better cash flow, and higher cash flow means lower risk of impairment.

1 Like · 3 months · translate

Vincent Wong

Parkson day? Hohoho merry Christmas. Sky is unlimited. Gogogo

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cheng

Not much actions from Irelia yet.

4 Like · 2 months · translate

Vincent Wong

Come on come on gogogo parkson. Happy merry Christmas

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Ng NG

year end book dressing by irelia, most likely

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cheng

yeah, Irelia defending their investments and yet to be on offensive mode.

3 Like · 2 months · translate

Ricardo Siau

supply is getting lower, it would be interesting to see them on the next offensive move

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cheng

agreed, Ricardo. Irelia seems to be a long term fund instead of short term or high frequency type of funds.

3 Like · 2 months · translate

Ng NG

looks like irelia is active yesterday, today and should be next Monday to pretty up the year end book closing

1 Like · 2 months · translate

cheng

first attempt by the attacking midfielder to push forward but strikers and wingers not in position. Had to keep the possession between central midfielders and attacking midfielder while defensive midfielder staying put. Lol, no pun intended.

3 Like · 2 months · translate

cheng

"Coach" Irelia making moves again. Need to change formation to offensive mode for the upcoming festive season in Q1'26. 5-3-2 to 3-2-5

3 Like · 2 months · translate

Ricardo Siau

Irelia just traded our insurance policy for a lottery ticket. Let's make sure that lottery ticket is a Q1 winner. Who needs defenses when you have sales targets?

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cheng

alright, Ricardo. will be waiting for the outcome of Q1 season ending by end of May'26; in 5 months time. the pre-season in q4'25 demonstrated team Irelia's defensive response whenever it is below 0.225 :)

3 Like · 2 months · translate

Vincent Wong

2026 wish us heng ong huat. Gogogo parkson. Happy New Year

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cheng

final hour before the ending of pre-season q4'25. what will be the final score for 2025?

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cheng

Irelia versus seasonal trends

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cheng

Irelia is still defending and accumulating

3 Like · 1 month · translate

Ng NG

next month Fye will be very exciting. if can return to profitable FY!

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Ng NG

fingers crossed !

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cheng

the only concern is the usual annual impairment exercise in Q4.

3 Like · 1 month · translate

cheng

The board of directors (the “Board”) of Parkson Retail Group Limited (the “Company”, and together with its subsidiaries, joint venture and associated companies, the “Group”) hereby announces that a meeting of the Board of the Company will be held on Tuesday, 24 February 2026 for the purposes of, among other things, considering and approving the final results of the Group
for the financial year ended 31 December 2025 and its publication and transacting any other business.

1 Like · 2 weeks · translate

Ng NG

PRA is up about 5% today. yesterday was up few percent. looking forward to return to profitable year.

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cheng

Irelia will probably make a move after q4 results.

3 Like · 2 weeks · translate

cheng

profit warning for PRG - The board of directors of the Company (the “Board”) hereby inform the shareholders of the Company (the “Shareholders”) and potential investors that, based on the preliminary review and assessment of the unaudited consolidated management accounts of the Group for the year ended 31 December 2025 (the “Year”) and the information currently available to the Board, the Group will record a loss attributable to owners of the Company of approximately RMB185.9 million for the Year as compared to the loss attributable to owners of the Company of RMB174.8 million for the year ended 31 December 2024. The loss attributable to owners of the Company was mainly due to: (i) decline in gross sales proceeds driven by structural shifts in consumer spending behavior and heightened caution in consumer spending amid macroeconomic headwinds and muted income growth expectation; and (ii) increase in asset impairment provisions recorded for the Year.

3 Like · 1 week · translate

cheng

PRA's qr seems to be later than the usual timeline. Wondering how will Irelia reacts after PHB's q4fy25 results? Buy the dip?

2 Like · 1 week · translate

Ng NG

PRA announced Q4 results. profit is better than Q4/24

1 Like · 1 week · translate

cheng

Thanks, Ng. PRG will release the qr loss tmr after market closing. We will have to see how Irelia reacts thereafter.

2 Like · 1 week · translate

Ng NG

PRA up 5% today in Sgx

2 Like · 1 week · translate

Ng NG

PRG up 7% today in Hk

1 Like · 1 week · translate

cheng

Thanks again, Ng. Irelia collecting 0.20 tickets probably :)

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馬拉ck

cant see parkson hk...it penny price stock... so ignore the price..
but i hope malaysia parkson is doing good in future

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cheng

Malaysia ops (PRA) has been profitable for several years now. China ops (PRG) continued to be hit with yearly impairments and becoming a norm / cycle. Avoid Q4 and trade the strong seasons is a safer bet.

4 Like · 1 week · translate

cheng

unusually quiet :)

1 Like · 6 days · translate

cheng

PHB's report out should be today. It is unlikely for PHB report out a positive FY results given the rmb300+ mil impairment losses from PRG. Irelia will have to step in to protect their investments :)

4 Like · 5 days · translate

Restia

Impairment is lower than last year, but this company is really impressive. It does RM2.5 billion to RM4.8 billion in revenue a year, yet it has never been able to make a profit in 11 years and it can’t even narrow its losses.

Sorry to say this, but I think Irelia is stuck now in this stock. Irelia holds 95 million shares, but the monthly trading volume of this stock is only around 5 million shares.

One of the reasons many funds don’t like buying into family businesses is that the family management usually has very strong control over the company. Even if the funds are unhappy with the direction or the management, there’s basically nothing much they can do about it.
The only way for Irelia to cut loss is to dump the shares to someone else at a discount.

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cheng

end game if Irelia starts dumping :)

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Restia

Sorry if this sounds like I’m pouring cold water here.

But when investors discuss a company’s performance, we should be sharp and direct. We shouldn’t sweep real issues under the carpet just because we’re afraid that others might hear it and not dare to buy the stock.

Many investors don’t realize that our position as investors is actually opposite — sometimes even conflicting — with management’s position.

Because of my job, I’ve followed my boss to meet many listed company owners, had meals at their houses, and attended meetings at their private clubs. I can tell you honestly, in their eyes, retail investors are like fools. They can release news anytime and move the share price around to play with retail investors’ emotions.

They might be a bit cautious with funds, but if the funds don’t hold enough voting power, they’re not afraid of them either.

Whenever I hear investors say we should just trust the management and trust the boss, I honestly find it quite sad.

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cheng

that's true, restia. trust the management and company is probably popularised by warren buffett value investing approach but unfortunately not easy to find. And news/event driven trades is so common nowadays.

1 Like · 5 days · translate

huathuat

hi cheng what would be your strategy? will you still continue to hold this stock?

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cheng

hi huathuat, I will continue to hold this stock unless the ops margin says the opposite (<5%) and Irelia exiting. as for strategy, risk off mode in q4 and risk on mode in q1&q2 according to the seasonality.

4 Like · 4 days · translate

cheng

3 safe months to trade at the back of festive season. A more aggressive approach is underway at PRG with closure of 5 non performing stores last year :) Q1 results will be announced in May.

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Jackie Tan

cheng 最大问题是在lease liability 全部赚来的钱给租金帮mall打工

1 Like · 14 hours · translate

cheng

True, jackie. PHB is in the situation of efficient operation (operating profit and margins) overshadowed by liabilities. There are two different school of thoughts with regards to lease liability after the mfrs 16 adoption. I am on the side of transparency which is a good thing. Treat lease liability as debt that has to be repaid instead of operating expense. These debt are the results of the past bad decisions - expansion and leasing terms. As such, we have seen aggressive actions on PRA closures of non performing stores that has led to profitable outcome. Been wondering why is it taking so long for PRG to take aggressive actions. FY25 was the first time I am seeing 5 non-performing stores closure. So, if we treat lease liabilities as debt repayment, it makes a lot of sense to close stores that are not generating enough profit to service the debt repayment :) The other thing that the mgmt has done if you managed to observe some of the lease renewal announcements last year - (1) leasing tenure reduced to below 20 years (2) commission based rental which is depending on the turnover.

1 Like · 14 hours · translate

Jackie Tan

Bonia也是一样问题 lease liabilities 好奇为什么Parkson不要自己建mall反正都赚那么多死死都要租所以这个就是为什么parkson一直都上不来唯一一个方法就是清盘分财产

1 Like · 12 hours · translate

cheng

lease versus own - different bucket from lease liability to ppe. No other choice except to close non performing stores and renegotiate the old lease terms.

1 Like · 12 hours · translate

cheng

Still wondering what is driving Irelia to increase its stakes to 8%+ and how much influence will they have in strategic decisions of Parkson. Did they push for more aggressive store closure last year?

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Jackie Tan

cheng 买入估计是觉得低估解决lease liabities or 等清盘那你因为什么原因买入？

Like · 11 hours · translate

cheng

I was comparing it with AEON and the turnover of PRA. Was hoping the same will be done on PRG but its taking way longer than I expected :( But my position was initiated at pretty low price at 0.135. Been managing it since then.

Like · 11 hours · translate

Jackie Tan

cheng 两个不一样 AEON不能compare AEON生意模式有自建商场和turn over高的fresh & grocery parkson卖的的东西比AEON turn over 低

1 Like · 10 hours · translate

cheng

Thanks, Jackie. Aeon making money from property mgmt instead of retailing and their property mgmt has pretty high margins. Parkson made more money from retailing than property mgmt. Parkson has higher lease liabilities and finance cost related to lease interest compared to Aeon. I was optimistic when PRA started the aggressive closures of non performing stores and was optimistic that lease liabilities and finance cost will go down when PRG starts closing non performing stores.

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拯救散户们

Property management yes exsimhb also doing hospitality management

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cheng

Took them 3 years to start closing PRG non performing stores. Hope to see more aggressive actions with Irelia on board.

1 Like · 8 hours · translate