Li & Fung 0494

Re: Li & Fung 0494

Postby winston » Thu Jul 19, 2012 3:12 pm

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DJ MARKET TALK: CS Cuts Li & Fung Target To HK$14.70 Vs HK$22.60

1404 [Dow Jones] STOCK CALL: Credit Suisse cuts Li & Fung's (0494.HK) target price to HK$14.70 (15X FY13 P/E) from HK$22.60 but keeps the stock at Neutral.

The house expects the positive margin trend to continue, but it observes slowing retail sales growth in both the U.S. and Europe, and therefore lowers its FY12-14 EPS forecasts by 14%-17%.

CS forecasts Li & Fung's 1H12 net profit will rise 35% on-year to US$319 million, partly driven by a 22% increase in revenue, and the continuing margin improvement since 2H11.

"We also expect Li & Fung to release a long list of acquisitions done, given the available of low-cost targets amid the macro backdrop in western countries."

Source: Dow Jones Newswire
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Re: Li & Fung 0494

Postby winston » Fri Aug 10, 2012 9:28 am

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DJ MARKET TALK: Li & Fung Likely To Fall; 1H Operating Pft Down 22%

0736 [Dow Jones] Li & Fung (0494.HK) is likely to fall as investors are set to focus more on the 22% on-year decline in core operating profit to US$221 million than the 33% on-year rise in 1H12 net profit to US$236 million, which was boosted by a writeback for two earlier acquisitions.

The lower operating profit was partly due to a slower-than-expected turnaround of its U.S. distribution business;

1H revenue rising 4% to US$9.13 billion looks disappointing, accounting for 40% of full-year forecast revenue of US$22.81 billion pegged by Thomson Reuters consensus.

The interim dividend is 15 HK cents/share, down from 19 HK cents a year earlier.

Source: Dow Jones Newswire
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Re: Li & Fung 0494

Postby winston » Fri Aug 10, 2012 9:50 am

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Down 21.5%; Volume at 9.50am: 96m shares

Shortselling on:
Aug 9: 5m shares
Aug 8: 2.6m shares
Aug 7: 3.4m shares
Aug 6: 2.3m shares
Aug 3: 4.1m shares
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Re: Li & Fung 0494

Postby winston » Fri Aug 10, 2012 2:10 pm

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LI & FUNG (00494) maintained OW with TP cut to HK$19 by MS

LI & FUNG (00494)'s interim net profit jumped 33% year-on-year to US$313 million, mainly due to an one-off special gain of US$196 million, said Morgan Stanley, who pointed out the core operating profit of LI & FUNG, which was 32% lower than the broker's estimate, dropped 22% mainly owing to decline in distribution profit. The broker expects profit of LI & FUNG for the second half of the year to climb.

The broker predicts the 2013 profit of LI & FUNG will grow stably, citing the effects of cross-sales and the income and expenditure balance at the Wal-mart purchasing unit.

Nevertheless, the overall gross profit margin of the distribution unit has not shown improvement, said the broker, adding the reorganization costs are still constituting pressure on profit.

In a word, Morgan Stanley is confident in LI & FUNG's position in the sector in the long term. LI & FUNG was maintained Overweight with target cut to HK$19 from HK$20.5.

Source: AAStocks Financial News
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Re: Li & Fung 0494

Postby winston » Fri Aug 10, 2012 2:38 pm

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DJ MARKET TALK: GS Cuts Li & Fung To Neutral; 1H Earnings Miss

1346 [Dow Jones] STOCK CALL: Goldman Sachs cuts Li & Fung (0494.HK) to Neutral from Buy, and its target price to HK$17 vs HK$21;

It cuts Li & Fung's FY12-14 recurring EPS forecasts by 24%/15%/14% on slower sales growth and operating deleveraging, and is also concerned that L&F's onshore brands do not have the same pricing power as leading U.S. national brands to pass on inflation.

"With earnings having missed three out of the last four rounds, we expect the stock to trade below its historical average in the next 6-12 months," Goldman says and hence it reduces its target P/E multiple from 24X (historical average) to 20X.

Source: Dow Jones Newswire
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Re: Li & Fung 0494

Postby winston » Fri Aug 10, 2012 5:09 pm

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LI & FUNG (00494) downgraded to Neutral by Citi on lower-than-expected interim core pft

LI & FUNG (00494)'s interim core profit was lower than market estimate and the firm changed its dividend payout policy, said Citigroup, who thus lowered its 2013 and 2014 earnings forecasts for the former by 14-17%.

Citigroup also believes LI & FUNG very likely will not be able to achieve the core operating profit target for 2013 of US$1.5 billion.

LI & FUNG was downgraded to Neutral from Buy with target cut to HK$16.7 from HK$19.4.

On the other hand, turnover of LI & FUNG dipped 13% year-on-year due to weak macro-economic environment, said Citigroup, who pointed out management of LI & FUNG project to participate in more acquisition activities in the second half of 2012 and in 2013.

Source: AAStocks Financial News
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Re: Li & Fung 0494

Postby winston » Mon Aug 13, 2012 6:29 am

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Plunge In Li & Fung Shares Reduces Wealth Of Hong Kong's Fung Family By More Than $1 Billion

A 19% plunge in the stock price of Hong Kong’s Li & Fung, the global sourcing giant whose business partners include Wal-Mart, wiped more than $1 billion from the controlling Fung family’s wealth on Friday.

Shares tanked after the company said a day earlier that operating profit declined by 22% to $221 million in the first half of the year amid weak revenue in Europe.

The drop also came on a day when China said exports in July rose by only 1% from a year earlier, suggesting weak global demand continued to cloud Li & Fung’s core apparel and toy sourcing businesses.

Victor and William Fung ranked No. 7 on the Hong Kong Rich List published in January with wealth of $6.2 billion. (Please click here for the full Hong Kong list.) They own about a third of Li & Fung shares, according to the company’s latest annual report.

Li & Fung was the most actively traded stock at the Hong Kong Stock Exchange on Friday, according to exchange figures. Wal-Mart shares lost 0.2% on Friday.

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Re: Li & Fung 0494

Postby winston » Mon Aug 13, 2012 9:12 am

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DJ MARKET TALK: Li & Fung May Stabilize; MS Stays Positive L/T

0756 [Dow Jones] Li & Fung (0494.HK) may stabilize after taking a 19.3% post-results beating to end Friday at HK$12.90, hurt by an avalanche of downgrades, after the sourcing firm reported its 1H12 core operating profit dropped 22% on year to US$221 million, which was sharply below market expectations.

Morgan Stanley is among the minority which keeps faith in Li & Fung; it says the disappointing interim results will put near-term pressure on the stock, but "we feel part of the hit to earnings is temporary, and there is scope for more solid earnings growth going into 2013."

MS remains positive on L&F's long-term industry positioning, and keeps its Overweight call despite trimming Li & Fung target to HK$19.00 vs HK$20.50.


Source: Dow Jones Newswire
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Re: Li & Fung 0494

Postby winston » Wed Aug 15, 2012 9:20 am

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DJ MARKET TALK: Li & Fung May Rebound; Holder, Fund Up Stakes

0826 [Dow Jones] Li & Fung (0494.HK), which took a big beating last week after its big earnings miss, may rebound Wednesday aided by an exchange disclosure showing the controlling shareholder Fung family, through HSBC Trustee, bought 15 million shares at HK$12.77-HK$12.94 on Aug. 10, when Li & Fung shares slumped 19.3%, lifting stake to 30.3% from 30.18%.

On the same day, U.S. fund Capital Research and Management bought 64.3 million shares at HK$12.67-HK$12.88, upping its stake to 6.69% vs 5.92%.

These stake buys are likely to be taken as a signal as showing the major shareholder and some funds remain confident on Li & Fung's prospects.


Source: Dow Jones Newswire
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Re: Li & Fung 0494

Postby winston » Tue Sep 11, 2012 6:13 pm

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Li & Fung research centre: U.S economy picking up gradually; expects 3Q CN exports to grow 10%

Chang Ka Mun, Managing Director of Li & Fung Development (China) Limited and its research centre, expects China's exports to grow less than 10-12% in the third quarter amid economic uncertainty in Europe and the U.S.

Chang believes U.S short-term orders are picking up gradually, but long-term orders are declining on strong inventories in enterprises.

Chang expressed worries over protectionism and trade financing risks among countries. He thinks the government should reduce road tolls and shorten licensing time as Chinese logistics sector is facing high cost pressure.

He expects inflation to go down gradually as prices of raw materials and food are declining.

The Chinese government needs to step up urban constructions and boost investment in infrastructure, as more peasants have migrated to cities, Chang said.

The Chinese government should also encourage green industries and offer short term subsidies, such as launching rural appliance rebate program, so as to boost economic growth, Chang added.


Source: AAStocks Financial News
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