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DJ MARKET TALK: Magic +38.2%; Foreign Brand Competition A Concern
1038 [Dow Jones] NEW LISTING: Magic Holdings (1633.HK) last up 38.2% at HK$4.56 on debut, but may not be too much further upside from intraday peak of HK$4.63.
Market cap of HK$3.65 billion values China's biggest facial-mask brand at 33X forward FY10 P/E, vs L'Occitane's (0973.HK) 27X, based on Thomson Reuters.
134 million shares have already changed hands in first half an hour of trade, 67% of 200 million shares offered, can be taken as indication that subscribers eager to take profit.
Fundamentally, competition from international brands with greater financial, R&D resources a concern, "might exert pressure on the company's margins and market share," says SHK Financial.
Source: Dow Jones Newswire