Giordano Intl 0709

[winston]

MARKET TALK: Giordano May Rise More; Cheng Yu-Tung Buys More Stks

Source: Dow Jones & Company

[stilicon]

seen on EtNet: http://www.etnet.com.hk/www/eng/stocks/realtime/quote_news_detail.php?section=related&code=709&newsid=ETE220703146

03/07/2012
[I-bank focus] JPM trims Giordano (00709) target to HK$6.5

JP Morgan trimmed its target price for Giordano (00709) to HK$6.5 from HK$7 due to earnings revisions, and maintained its "overweight"
call.

The research house noted that Giordano's China performance in 2Q remains relatively weak though management is seeing some sequential improvement from 1Q numbers.

In HK, 2Q is tracking better than 1Q, where local design and strategy is working very well.

JPM cut its FY2012 earnings estimates by 6% mainly to reflect the weak 1Q operational update and slightly weak 2Q in China.

[stilicon]

1Q12 results :http://www.hkexnews.hk/listedco/listconews/SEHK/2012/0525/LTN20120525450.pdf

It seems a perfect vehicle to follow the consumer rise in Asia (and not only in PRC, as the latter makes only 35% of sales).

It also could be a favorable time to invest. Pessimism is high. People focus only on disappointing PRC sales, while forgetting HK+ Taiwan + ASEAN centered on Singapore + Dubai + Australia developments. Luxury or semi-luxury ASIAN brands should do well in the next 10 years.

Then, by the numbers it seems a very well managed company, comparable to, say, Sa Sa, only cheaper, and with a higher dividend while waiting.

I wonder if I miss something...

I also wonder how this brand is perceived in Singapore. Does anyone has a personal experience about this brand in Singapore ?
(not vested yet)

[kennynah]

Giordano is not a top line fashion wear brand, at least perceived in Singapore (in my opinion).

It might also be seen as a cheap brand that the fashion conscious will rather die than be seen wearing its apparel other than to go to a local grocery shop late in the night.

G2000 is quite a favourite among the young professionals starting out because they have a line of business wear, long sleeves and affordable suits, that Giodano does not. My impression of Giordano is that it is a shop selling badly ccut polo Ts, shorts and unflattering jeans.

of cos, this is just my opinion.

[winston]

I think people prefer to buy their clothes from Uniqlo instead of Giordano, as there is no brand on the clothes from Uniqlo.

If you want to wear "cheap clothes" then it's better to wear one without a brand.

[kennynah]

i like uniqlo..affordable and quasi trendy

[stilicon]

1H12 results : http://www.hkexnews.hk/listedco/listconews/SEHK/2012/0815/LTN20120815132.pdf

Also : (seen on http://www.aastocks.com)


Louie Shum bearish on retail stocks, expects GIORDANO INT'L (00709) to meet resistance at HK$5.8
2012-08-15 14:33:57

GIORDANO INT'L (00709) gained 4.4% after announcing interim results, last at HK$5.6.

Louie Shum, Chief Executive Officer of Sincere Securities Ltd, deems the climb was mainly attributable to the horizontal movements of the stock in the past.

Nonetheless, he thinks it will be hard for the stock to keep the uptrend and the stock may be greeted by resistance at HK$5.8.

Shum said although certain investors are still hoping New World Development Company Limited Cheng Yu Tung would increase stake in GIORDANO INT'L, the retail industry is facing the challenges from high costs and fall in sales, said Shum, who added the gross profit margin and same-store-sales of GIORDANO INT'L dropped in the first half of 2012.

Shum believes there is slim chance for GIORDANO INT'L to fare better in the second half of the year. He did not suggested investors buying the shares of GIORDANO INT'L.

[winston]

not vested

GIORDANO INT`L(709)

Analysis：

Giordano (709) through a network of 1,874 points of sales, or 1,844,000 sq. ft. of retail floor space in different markets including Hong Kong and Macau, Mainland China, Taiwan, Southeast Asia, Australia and Gulf Cooperation Council.

During the financial year ended 31 December 2022, the Group`s revenue grew by 12.4% to HK$3,799 million.

The second-half outperformed the first-half and grew by 13.1% (first-half:11.7%).

Net profit attributable to the Company`s shareholders surged to HK$268 million (2021:HK$190 million), an increase of 41.1%.

The Company`s Board of Directors recommended a final dividend of 15 HK cents per share, an increase of 50%, to reach a total dividend of 23.5 HK cents per share for the year, translating into a dividend yield of 11%.

The Group will further build its footprint in developing economies through franchising and licensing. It has made encouraging progress in India, Mauritius, Kenya, Ghana and Egypt. (I do not hold the above stock)

Strategy：
Buy-in Price: $2.08, Target Price: $2.45, Cut Loss Price: $1.95

Source: Phillips