DJ MARKET TALK: Bosideng Off 2.0%;Valuation Not Attractive Enough-MSJun 30, 2011
1430 [Dow Jones] Bosideng (3998.HK) is down 2.0% at HK$2.40, on modest profit-taking after the stock's 14.0% rally Wednesday following its FY11 results, with its sharp rise mainly supported by a higher dividend payment.
Morgan Stanley says, its FY11 net profit (+18% on-year at CNY1.28 billion) was 2.6% above the house's estimate, while the company proposed a final dividend of CNY0.068/share and a special dividend of CNY0.06/share.
"The stock trades at 12X FY12 P/E, which we view as not attractive enough. A 7.0% dividend yield should lend some support to the price, but overall, net profit growth momentum will likely be unexciting over the next two years."
It keeps the stock at Equalweight, and slightly raises its target to HK$2.80 from HK$2.70, without providing a reason.
Source: Dow Jones Newswire