Giordano Intl 0709

[winston]

Not vested.

Local fashion retailer Giordano International (0709) reported a 45.5 percent rise in first-half net profit to HK$208 million, thanks to sales growth in China of 34.1 percent.

Giordano disposed of its garment manufacturing business in June to focus on retailing.

Profit from continuing operations soared 58.5 percent to HK$214 million. Turnover rose 11.6 percent to HK$2.34 billion.

An interim dividend of 4.5 HK cents and a special dividend of 2 HK cents were declared.

[winston]

DJ MARKET TALK: DBS Downgrades Giordano To Fully Valued Vs Hold

1135 [Dow Jones] STOCK CALL: DBS downgrades Giordano (0709.HK) to Fully Valued from Hold, cuts target price to HK$1.51 from HK$1.80. Notes Giordano's sluggish sales during Chinese New Year confirms its slowing sales trend in China. Cuts earnings forecasts by 15%-22% on sustained weakness in most major markets, looming margin pressure, prospect of more promotions, discounts ahead.

Says now expects FY08 estimated core earnings to shrink 12% on year, FY09 by 17%. Stock down 0.5% at HK$1.83. HSI up 0.7%.

[winston]

Not vested. From Dr. Check, The Standard HK:-

Giordano (0709) sells clothes under its own brand.

In fiscal year 2009, it paid a total 16 HK cents in dividends or a 4.5 percent yield based on yesterday's close of HK$3.55. Over the past year, Giordano stock has risen 133 percent.

Both high-dividend picks look ripe for bargain hunting.

[winston]

Not vested

Giordano. While its China operations remained in restructuring mode during 1H11, other markets (over two-thirds of the group’s earnings) have performed strongly as a result of a successful pricing strategy and marketing campaign.

In the longer term, the group’s focus on product, marketing and pricing should ensure better financial achievements going forward.

The group has declared a substantially higher regular interim dividend rather than a smaller regular dividend plus special dividend as management is expecting to pay strong
dividend in the future in view of the promising outlook and strong cash flow.

The stock is trading at only 14x 2011F PE with a 6% dividend yield.

Source: UOBKH

[winston]

not vested

New World Development (0017) chairman Cheng Yu-tung has raised his stake in Giordano International (0709), making him the largest shareholder of the clothing retailer.

Cheng bought two million shares of the retailer last Thursday for HK$6.43 apiece. He now holds a 20.09 percent stake in Giordano.

Source: The Standard HK

[winston]

not vested

DJ MARKET TALK: Giordano +5.7%; Cheng Stake Buy Positive - Broker
1002 [Dow Jones] Giordano (0709.HK) is up 5.7% at HK$6.14, outperforming the broader market (the HSI rises 0.5%), supported by news New World Development (0017.HK) chairman Cheng Yu-tung raised his stake in the HK casual apparel retailer to 20.09% from 19.15% on September 8, according to an exchange disclosure.

"The news is definitely a positive to Giordano, as Cheng's stake increase suggests it's a good entry level for long-term investors," says Prudential Brokerage's associate director Alvin Cheung says.

Cheng last boosted his stake in Giordano on June 21; the stock has fallen 9.1% since then. He expects Giordano could outperform the broader market in the near-term, while its month-to-date high of HK$6.70 is tipped to be a near-term cap.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: Giordano FY11 Dividend Yield Tipped At 5.7% - GC

1321 [Dow Jones] STOCK CALL: GuocoCapital says it conservatively expects Giordano's (0709.HK) 2011 dividend yield at 5.7%, based on a dividend payout ratio of 75%.

It tips the causal wear retailer to benefit from strong domestic consumption in the Greater China region.

Since the release of interim results on Aug. 30, its share price has outperformed the Hang Seng Index by 5.0%, it notes.

"Giordano's financial position is solid enough to help maintain high dividend payout policy."

As of end-June, the company had net cash of HK$1.132 billion, equivalent to $0.75/share, with average dividend payout over the past five fiscal years at 101% earnings, it says.

It keeps the stock at Buy with a target of HK$7.65. The stock is down 2.8% at HK$6.18 at midday.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: Giordano Off 3.9% Post-3Q;HK$5-HK$6.5 Band Tipped-KGI

1055 [Dow Jones] Giordano (0709.HK) falls 3.9% to HK$5.99, in part due to profit-taking after its 14.3% rally in the past five sessions, but also due to its uninspiring 3Q results.

In particular, China growth is disappointing, with sales rising only 8.9% on year, and may surprise investors liking Giordano's China growth story.

KGI Asia expects Giordano sales and earnings to maintain strong growth for the full year in 2011, but notes part of the growth comes from Asian currency appreciation.

"Given the current uncertain outlook of global economy, Asian economy and currency might be impacted.

Trading at 13X FY11 prospective P/E, Giordano is not attractive and we expect the counter to range trade at HK$5.00-6.50."

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: Giordano Slides 4.7% But Undervalued - GC

1414 [Dow Jones] Giordano (0709.HK) falls a bit more in the afternoon and is down 4.7% at HK$5.94, after its uninspiring 3Q results;

In particular China growth is disappointing, with sales rising only 8.9% on year, and may surprise investors buying Giordano's China growth story.

Still, GuocoCapital says better gross margin in 3Q reflects good costs control in an inflationary environment, and Giordano's financial position remained sound with net cash of HK$1.11 billion.

Looking ahead, GC expects revenue growth to slow further in 4Q11 amid an economic slowdown in Mainland China and Hong Kong, but the stock trading at 13X FY11 P/E with a dividend yield of 5.8% "is still undervalued."

Source: Dow Jones Newswire

[winston]

not vested

Three key reasons to BUY Giordano:

• Few apparel brands have such a well-established regional footprint in
Asia. We consider it a takeover target.

• Growing Asian consumption theme. Giordano is doing well in all Asian
markets except China. China operations will improve from 2012 onwards.

• Very attractive valuation with a high dividend yield of 7% and a single-digit PE for 2012.

Source: UOBKH