Challenger Technologies

[Dividend Warrior]

A glimpse on the report, and few points observed

- GPM continue to deteriorate, from 18.9% in FY12 to 18.1% in 9 months of FY13. The COGS continue is an issue.
- NPM is 4.3% in 9 months of FY13, versus 4.8% in FY12. The management able to cushion some of pressure from COGS, but I doubt they can do any further.
- Cash cycle is longer, mainly due to shorter payable days. Suppliers were pushing for shorter credit period.

May be a good reason to shift focus to Valore products. Will it work? I am yet to visit any of the Valore shop.

(vested)

Seems like the management is pinning alot on the new Musica and Valore concept stores. I have not been to one yet. I will probably visit their new stores when I check out Westgate Mall in December.