Li & Fung 0494

Re: Li & Fung 0494

Postby LenaHuat » Thu Mar 26, 2009 4:02 pm

Juz watched William Fung being interviewed on CNNTV. He said biz for the first 2 mths seemed OK. But he thought the consumer sector was being impacted only in the early stages but he was hopeful :roll:
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Re: Li & Fung 0494

Postby winston » Fri Mar 27, 2009 3:36 pm

DJ MARKET TALK:Li & Fung Caught Off-Guard By Downturn Severity-CS

1339 [Dow Jones] STOCK CALL: Li & Fung's (0494.HK) weak 2008 results indicate company caught off-guard by severity and speed of downturn, Credit Suisse says. Notes FY08 net profit down 21% on-year, says bad debts and restructuring charges significantly larger than expected. Says 2008 underlying profit based on house's definition +9% on-year, in line with house's forecast but below consensus.

Says views consensus forecasts as optimistic. Expects company to remain "hostage of the economy" in 2009 and possibly 2010 depending on duration of downturn and whether it is U- or L-shaped recovery. Trims target tad to HK$12.51 from HK$12.54; keeps at Underperform. Notes stock trades at 15.3X, 11.3X 2009, 2010 EBITDA, says may be more palatable vs 22X, 15X 2008, 2009 P/E on house's forecasts, but still unattractive. Says doesn't see any urgency to pay a premium multiple for company. Shares down 1.6% at HK$18.28.
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Re: Li & Fung 0494

Postby winston » Tue May 05, 2009 7:17 am

Li & Fung targets US$350m to boost balance sheet

Li & Fung (0494) is seeking to raise about US$350 million (HK$2.73 billion) through a share placement, a term sheet sent to investors shows.
The consumer goods exporter will use the proceeds to fund potential acquisitions and to strengthen its balance sheet. Citigroup and Goldman Sachs are the bookrunners.

Li & Fung aims to sell around 120 million share at between HK$22.55 and HK$23.28 - a 3 percent to 6 percent discount on yesterday's closing price of HK$24. The company's shares surged 10.8 percent from HK$21.67 on Thursday.

Source: The Standard HK
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Re: Li & Fung 0494

Postby winston » Thu May 14, 2009 8:04 am

Li & Fung tips opportunities in recovering US by Benjamin Scent, The Standard

Trading giant Li & Fung (0494) believes the US economy could start recovering early next year and sees many opportunities for acquisitions in the United States and Europe, president Bruce Rockowitz said yesterday.

"My gut feeling is we're close to the bottom," Rockowitz said, noting there have been "some signs of improvement" in the economy.

"Right now, some of our key customers are re-ordering pretty strongly," he said after Li & Fung's annual general meeting. Group managing director William Fung Kwok-lun said he sees a "silver lining in the clouds" as a pick-up in consumer demand has started depleting retailers' inventories.

Rockowitz said the firm's focus will be on securing major new outsourcing deals as well as "roll-up acquisitions."

"Acquisition targets are having a hard time getting financing," he said. "There are a lot of opportunities in the United States now."

Li & Fung has US$500 million (HK$3.9 billion) cash on hand, following the recent share placement, as well as US$500 million in untapped lines of financing.

Fung said: "We have enough financial firepower. It's a matter now if we have the appropriate target."

Rockowitz said the firm is also looking to expand its onshore business in handbags, accessories and brands.

He also said Li & Fung targets US$1 billion in annual revenue from its health, beauty and cosmetics business by next year and is planning acquisitions in that area.
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Re: Li & Fung 0494

Postby winston » Tue May 19, 2009 12:30 pm

Not vested.

DJ MARKET TALK: Goldman Raises Li & Fung Target 18.6% To HK$25.50

1038 [Dow Jones] STOCK CALL: Goldman Sachs raises Li & Fung (0494.HK) price target to HK$25.50 from HK$21.50 after rolling over to 2010 forecast earnings, which has lower market multiple assumptions of 16X forecast P/E vs 18X forecast 2009 forecast P/E.

Says despite strong year-to-date gains, stock's valuation "appears undemanding both in absolute and relative terms." Says latest U.S. macro data suggests worst decline in consumer spending may have already passed.

"In addition to end demand stabilization, we also believe the inventory cycle of apparel could also be turning from destocking to restocking." Notes stock could be "at the dawn" of such restocking cycle. Keep Buy call. Shares +4.5% at HK$21.95.
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Re: Li & Fung 0494

Postby winston » Thu Jun 04, 2009 3:06 pm

Makes sense to you ? Target Forward PE of 23 for a no growth stock ?

DJ MARKET TALK: UBS Ups Li & Fung To Buy Vs Sell; Ups Target 32%

1204 [Dow Jones] STOCK CALL: UBS upgrades Li & Fung (0494.HK) to Buy from Sell as house believes sharp decline in year-to-date outperformance over HSI in recent weeks offers attractive entry point. House also raises target price to HK$26.00 from HK$19.70.

Says stock is currently trading at 19X 2009 EPS estimate; adds new target implies 23X valuation. Notes U.S. consumer might not be ready for price increases, but suppliers and retailers have limited capacity to absorb cost increases.

Says potential hike in commodity prices will likely force U.S. consumers to once again trade down on their purchases, which could benefit company's business. Stock +1.1% at HK$22.15; HSI down 2.1%.
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Re: Li & Fung 0494

Postby eauyong » Wed Jun 10, 2009 12:14 pm

Wonder why such a small amount of US$5.4M can dragged down so much.

Li & Fung dragged down by client's bankruptcy plunged 7%
11:46

Li & Fung (00494) customers German company Arcandor,filed for bankruptcy protection,the company owed to Li & Fung of U.S.$5.4 million. Affected by the news, Li & Fung shares today was down about 7%,the lowest closed at $21.5.
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Re: Li & Fung 0494

Postby winston » Wed Jun 10, 2009 12:28 pm

eauyong wrote:Wonder why such a small amount of US$5.4M can dragged down so much.


Maybe it's just an excuse to take profit as the share price has doubled from the low of about HK$12.50.

Why would somebody buy this stock at a PE of 30 now when things are not really growing ?

Maybe the shorts are shorting it again. Will check Short-Selling Volume later.
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Re: Li & Fung 0494

Postby eauyong » Wed Jun 10, 2009 12:47 pm

For easy comparision of PE and market cap. (Yesterday's close)

Code Name/ Price / PE/ Mkt Cap (Million HK$)

494 LI & FUNG $23.10 33.33 89040
330 ESPRIT HOLDINGS $47.75 9.17 58930
1880 BELLE INT'L $6.80 25.19 57770
551 YUE YUEN IND $17.26 7.88 29050
3818 CHINA DONGXIANG $4.69 17.12 26570
2020 ANTA SPORTS $8.54 20.93 21190
2331 LI NING $19.00 24.05 19380
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Re: Li & Fung 0494

Postby LenaHuat » Wed Jun 10, 2009 10:00 pm

I've juz taken note of your Lambourghini avatar. On Saturday or last Saturday's edition of the ST, Hong Seh the local distributor of Lam*, Maserati etc are hiring sales reps. Are luxurious items (read the shopping thread) looking up :lol:
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