Parkson Retail's net profit down 25% to $10.2m in Q2

Due to weak sales in Malaysia.

Parkson Retail Asia reported that its net profit slipped 25% to $10.2m in the second quarter, on back of weakening consumer trends in its mainstay market, Malaysia.

A report by CIMB noted that Malaysia is PRA's problem child, but the group's outlook remains bright in other markets like Vietnam, Myanmar, and Indonesia.

"We see scope for higher earnings in 2H as losses in its ex-Malaysia markets gets sorted out. At current valuations, with a 6.8% dividend yield, this is good enough for a upgrade. We raise earnings by 2-11%. Our target price (18x FY16 P/E) gets pulled up along and triggers an upgrade to Add. The only dampener in 2Q15 is weak Malaysia trends; a consumer that is due to slow post-GST is its biggest risk," stated CIMB.