not vested. PE 31; Rev +25%;
DJ MARKET TALK: Belle May Extend Gains; 1H Net Profit +29%
1335 [Dow Jones] Belle (1880.HK) may extend gains after reporting its 1H11 net profit rose 29% on-year to CNY2.01 billion, supported by a 25% rise in revenue, due to continuous steady sales growth from both the footwear and sportswear businesses.
Citigroup had tipped net profit at an above-consensus CNY2 billion. But net profit growth was slower than operating profit's 38% increase because the effective tax rate in 1H11 was 23.2%, higher than 17.5% in 1H10.
Its interim dividend is at CNY0.07, compared with CNY0.05 in 1H10. Its gross profit margin improved to 57.0% from 55.6% in 1H10, after a change in the proportional sales between the footwear and sportswear businesses.
In 1H11, Belle added 841 new outlets in the footwear business in mainland China, and opened 349 new outlets for its sportswear business, reflecting strong momentum. Belle was +2.2% at HK$15.04 at midday.
Source: Dow Jones Newswire