DJ MARKET TALK: UOBKH Cuts Li Ning To Hold; Growth Factored In
1224 [Dow Jones] STOCK CALL: UOB KayHian cuts Li Ning (2331.HK) to Hold from Buy, fair value to HK$10.40 vs HK$15.20; lowers FY09 earnings forecasts by 9% to CNY724 million, FY10's 12% to CNY821 million; forecasts imply slowdown in profit growth from 43% in 2008 to 7% in 2009, based on addition of 800 stores (on top of 6,200), 3% same-store-sales growth, 0.9ppt on-year drop in EBIT margin this year.
Says stock trading at 12.7X FY09 P/E fully factored in prospective 10% EPS CAGR for next two years. Stock down 2.4% at HK$9.84