Challenger Technologies

[D123]

My estimates of IT product and services revenue per retail space (square feet) fell in 2008 and 2009. Although 1H2010 figures seem to indicate a bounce back, it is still short of 2005 levels. The opening of the megastore in Mines, KL, which I understand is not in the central part of KL city, might be a factor, and cannibalization among its Singaporean stores might be another.

Same store sales (SSS) has been positive for the last 2 FY, according to CFO Tan. This measures sales growth for shops that have been in existence for at least a year.

As such, assuming there's indeed a decline in rev/psf, it's likely due to the setting up of new shops. These will take some months to ramp up. Unless SSS is negative, I don't see any evidence of cannibalization.

Malaysian op was running at a loss in 2009, IIRC. We'll have to wait for the AR's segmental results to see the perf for FY10.

I calculated the same store sales (stores lasting more than a year) and found that it declined from about $1800 in 2008 to $1400 in 2009. Can the CFO be referring only to Singapore stores?

bluechipstamp,
if you can give the link to the CFO's comments, it would be much appreciated.