by winston » Fri May 27, 2011 11:24 am
Not vested. PE 28 and EPS growth is ?
DJ Li & Fung: UBS Report On Firm's Accounting Policies Not Factually Accurate
HONG KONG (Dow Jones)--Hong Kong supply chain manager Li & Fung Ltd. (0494.HK) Friday clarified about its accounting policies in response to a research report issued by UBS Securities Asia Ltd.
The clarification came after UBS Wednesday lowered Li & Fung's its target price to HK$9.00 from HK$16.50 to reflect changes in its accounting policies. Li & Fung, whose shares tumbled 4.9% to HK$16.64 Thursday, said the report was factually inaccurate.
UBS said Li & Fung has recently adopted a new accounting rule, HKFRS 3 (revised), and said the company's future GAAP earnings might not fully reflect the profitability of operations and that the new revenue recognition policy may distort a declining margin trend.
'These statements are misleading,' Company Secretary Terry Wan said in the statement.
'The company has disclosed the relevant accounting policies in note 1.1 of its 2010 accounts, which have been audited by PricewaterhouseCoopers and are in full compliance with the HKFRS (Hong Kong Financial Reporting Standards),' Wan said.
The company, which sources products for U.S. retailers such as Wal-Mart Stores Inc., Abercrombie & Fitch Co. and Kohl's Corp., also said its newly acquired logistics company Integrated Distribution Services Group Ltd. (2387.HK) contributed a profit before tax of around US$5 million during the two months post-acquisition in 2010, in contrast to a loss of US$5 million reported by UBS.
Source: Dow Jones Newswire
It's all about "how much you made when you were right" & "how little you lost when you were wrong"