POPULAR, has a history that dates back more than 75 years, has evolved to become an integrated media group and currently is one of the largest and most extensive publishing, content creation, education and retail distribution group in Asia. Not allowing itself to rest on its laurels, POPULAR intends to continue to propel forward through a series of new strategies. These include exploiting new media platforms and technologies to expand its sales avenues and product salability. It will also adopt a click and mortar business model to enhance their core business in education, publishing, content creation and retail and distribution. The company expects to use new delivery channels to enhance the scalability of their business across new markets and to improve their brand equity to maximize synergies in marketing and promotion and logistics/ fulfillment.

POPULAR now operates in 6 different geographical localities in Singapore, Macau, Malaysia, Hong Kong, Taiwan and Canada. The POPULAR Group has 68 bookstores, which it manages, 53 CD RAMA stores and 24 franchised stores. All in all it operates on 640,000 sq feet of retail space. It manages a huge membership database. In Singapore, there are 170,000 POPULAR Cardholders, 150,000 CD RAMA Card holders. In Malaysia, there are 120,000 POPULAR Cardholders. While in Hong Kong, there are 140,000 Popular Card holders.

The pie chart shows the breakdown in POPULAR sales revenue. Office Stationery contributes the greatest sales to POPULAR, which is followed by textbooks and then English books.

Besides its retail operation, POPULAR creates, publishes and distributes educational content as well. In Hong Kong, POPULAR has a 70% dominant market share in the pre-primary textbook market. It acquired 33% stake in New Asia, Hong Kong in 2000. The new entity currently supplies close to 50% of the primary school textbooks needs in Hong Kong.

The company also plans to take advantage of the liberalization of the local textbook market to introduce their range of products progressively to the local schools.

Turnover and profits have grown surely and consistently. The company has been able to reward their investors regularly with bonus issues and substantial dividend payouts.

POPULAR Group's revenue increased at a compounded annual growth rate of 14.4%. In 1H FY 2001, POPULAR has recorded revenues of $124.39 million, 25.15% above 1H 2000. Despite aggressively expanding its retail chain, POPULAR's pre tax profit margins have remained fairly stable over the last five years. The Group usually records a better turnover in the second half due to the start of the new academic year where sales are higher. The Group would be announcing their FY 2001 results sometime in July and we believe it would be another good year for the company and her shareholders.

Source: TODAY: SMALL STOCK FOCUS of Wallstraits.com