Li & Fung 0494

Re: Li & Fung 0494

Postby LenaHuat » Fri Aug 12, 2011 9:26 am

Temasek Holdings has a stake in this. The share price is down 46% YTD :o
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Re: Li & Fung 0494

Postby winston » Thu Sep 29, 2011 10:41 am

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Li & Fung (494 HK, Neutral) - A strong franchise, but may remain range-bound( HKD12.82 / PT: HKD14.10 )

Action: May remain range-bound in near term; but weakness may be good entry point for long-term exposure. Downgrade to NEUTRAL

Cost pressure hit Li & Fung’s (LF) margins and core operating profit fell 17% in 1HFY11.

We expect the company to realise cost savings and distribution margins to rebound, but the threat of macro weakness may remain an overhang.

We think bad macros may not be as bad for LF as it gains market share and acquisition opportunities may come cheap, but the ~87% sales exposure to developed markets may keep a lid on re-rating.

We think it will remain range-bound for a while, and thus, following transfer in coverage, we downgrade to NEUTRAL. However, we do believe LF is a strong franchise and any weakness provides a good long-term entry point.

Source: Nomura
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Re: Li & Fung 0494

Postby winston » Mon Oct 24, 2011 11:32 am

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DJ MARKET TALK: Street Too Pessimistic On Li & Fung - Barclays

1111 [Dow Jones] STOCK CALL: Barclays Capital says September retail sales data for key U.S. retailers has surprised on the upside, in particular for names like Wal-Mart and Kohl's, key Li & Fung (0494.HK) customers, raising hopes of a robust 2H performance.

The house expects about 30% on-year revenue growth in 2H11 for Li & Fung to drive 53% on-year earnings growth.

However, "with a chunk of the Street expecting flat earnings for 2011 (and beyond), we believe robust 2H growth would help counter those with an extremely negative view and lead to a re-rating."

The house adds, Li & Fung management has been buying shares of late. "We believe so should investors." It keeps the stock at Overweight with a HK$22.70 target. Li & Fung is up 2.1% at HK$12.94.

Source: Dow jones Newswire
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Re: Li & Fung 0494

Postby winston » Mon Nov 07, 2011 11:49 am

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DJ MARKET TALK: MS Cuts Li & Fung Target To HK$19.30 Vs HK$21.80

1030 [Dow Jones] STOCK CALL: Morgan Stanley cuts Li & Fung's (0494.HK) target to HK$19.30 from HK$21.80, after cutting its FY11 EPS forecast to US$0.08 from US$0.09 and FY12 forecast to US$0.10 from US$0.11.

The house says the adjustments reflect assumptions of a "deep dive into returns and cash flows" as the house tries to address investors' key concerns / questions given an uncertain outlook over the global markets.

However, the house keeps the stock at Overweight, as it expects L&F's operating margin to benefit from accelerating cost rationalization.

"This should help drive earnings in 2H and for the next few years." The stock is down 0.9% at HK$15.08.

Source: Dow Jones Newswire
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Re: Li & Fung 0494

Postby winston » Mon Nov 28, 2011 10:11 am

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MARKET TALK: Li & Fung +6.5%; Positive US Holiday Sales Data


Source: Dow Jones Newswire
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Re: Li & Fung 0494

Postby winston » Mon Nov 28, 2011 10:47 am

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DJ MARKET TALK: Li & Fung Rallies 7.4%; Worst Is Over - CPY

1036 [Dow Jones] Li & Fung (0494.HK) rallies 7.4% to HK$14.86 and is the best-performing blue chip, spurred by strong Black Friday sales in the U.S., which bode well for the sourcing firm.

"We believe the worst is over for Li & Fung," says Castor Pang, research head at Core Pacific-Yamaichi; he expects the stock to sustain its relative outperformance in the short run.

Still, brokerage house Sunwah Kingsway cautions against excessive optimism; it says Black Friday is just one day of sales performance and it remains to be seen whether consumers will sustain this behaviour throughout the holiday shopping season.

Li & Fung's volume is strong at HK$123.8 million vs HK$151.2 million all of Friday.

Source: Dow Jones Newswire
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Re: Li & Fung 0494

Postby winston » Tue Mar 20, 2012 12:28 pm

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Li & Fung Ltd said it welcomed a court ruling that it should not pay Hong Kong tax on profits earned offshore.


Source: Reuters
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Re: Li & Fung 0494

Postby winston » Fri Mar 23, 2012 8:51 am

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DJ MARKET TALK: Li & Fung May Rise; FY11 Profit Beats Forecast

0754 [Dow Jones] Li & Fung (0494.HK) may rise on reporting its FY11 net profit rose 24% on year to US$681.2 million, thanks to organic growth and acquisitions, as well as synergies achieved through business restructuring; the bottomline beats the US$617.4 million average estimate of 18 analysts surveyed by Thomson Reuters.

The blue-chip sourcing firm sounded an optimistic note about the economic recovery in its key market of the U.S. (accounts for about 60% of its revenue), signaling a sharp change in fortunes for the international trade bellwether.

Still, it may be worth noting that Li & Fung shares rose 7.1% month-to-date, vs the HSI's 3.6% fall, so some expectations for a set of good results are likely to be in the price.

The stock finished Thursday +0.4% at HK$19.06 pre-results.

Source: Dow Jones Newswire
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Re: Li & Fung 0494

Postby winston » Wed Mar 28, 2012 6:34 am

Li & Fung aiming for US$500m

Li & Fung (0494) is gearing up to raise about US$500 million (HK$3.9 billion) from a share sale to bolster working capital as the world's largest supplier of clothes and toys to retailers pushes for growth through acquisitions.

According to a term sheet, the company is selling shares at HK$18.52 to HK$18.82 apiece - about 5.5 percent lower than yesterday's closing price of HK$19.60.

It may use the money for future business development and acquisitions, according to the document.

http://www.thestandard.com.hk/news_deta ... 20328&fc=4
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Re: Li & Fung 0494

Postby winston » Thu Apr 05, 2012 11:34 am

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DJ MARKET TALK: Macquarie Questions Li & Fung's Strategy
Mar 29, 2012

1032 [Dow Jones] There are increasing questions about whether or not Li & Fung (0494.HK) will be able to sustain its growth-via-acquisition strategy, and Macquarie belongs to this camp.

It says that with L&F's desire to make increasingly more acquisitions to sustain headline growth and justify the multiples of 30X forward P/E, its ability to maintain a 80% payout ratio is becoming increasingly stretched.

While the company can keep raising equity, this is getting more difficult with declining ROAs and ROEs as well as the low to non-existent organic growth.

The stock is down 0.9% at HK$18.42 on top of its 5.2% post-placement tumble Wednesday.

Macquarie rates Li & Fung Underperform with a target price of HK$12.50, which is among the lowest by major brokers.


Source: Dow Jones Newswire
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