Why Courts Asia is predicted to have a 'muted' 2Q14

Furniture sales in Singapore to slow down.

DBS expects results to be muted, on lower fuel subsidies in Malaysia and slower furniture and household equipment sales in Singapore.

Here's more:

We have therefore reduced sales psf expectations in Singapore and Malaysia; and hence lowered our FY14F/FY15F earnings forecast by 5%/2%.

Longer term, we expect demand in Malaysia to normalise when the market adapts to lower fuel subsidies. With higher housing completion in Singapore going forward, we remain positive on demand picking up.

Since Apr/May 2013, Courts’ share price has fallen 33% from a high of S$1.145 to S$0.77 currently. Courts now trades attractively at 10.0x FY14F PE, below average valuations of 11x and peer’s average of 14x.

Long-term trends continue to be in favour for Courts as a beneficiary of increasing population and housing trend in Singapore. It will also continue to benefit from the growing middle class and rising income trend of ASEAN consumers in Malaysia, and Indonesia from 2014.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia