- ExchangeHong Kong Stock Exchange
- SectorGeneral Retailers
The independent financial analyst theScreener just lowered the general evaluation of IT LTD. (HK), active in the Apparel Retailers industry. As regards its fundamental valuation, the title still shows 1 out of 4 possible stars. Its market behaviour, however, has slightly deteriorated and will be qualified as risky moving forward. theScreener considers that these new qualifications justify an overall rating downgrade to Slightly Negative. As of the analysis date December 20, 2019, the closing price was HKD 1.79 and its target price was estimated at HKD 1.56.
Feasibility Study Results in December to be a Catalyst for this Junior
In line with its earlier profit warning, I.T reported a 1HFY20 net loss of HK$72m last night (vs 1HFY19 net profit of HK$113m) on a revenue decline of 1.2% yoy to HK$4,015m, mainly due to operating losses from Hong Kong and Macau as a result of weak consumer sentiment and inbound tourist arrivals. Gross margin contracted 1.9ppt yoy, driven mainly by earlier-than-usual discounting activities in Hong Kong and Macau. Japan & US SSS growth slowed to a low-single-digit. Maintain HOLD with a target price of HK$1.85. Entry price: HK$1.58.
KEY HIGHLIGHTS CHINA Sector Coal A gloomy 2019, downgrade to UNDERWEIGHT. Results I.T (999 HK/HOLD/HK$3.75/Target: HK$3.69) FY19: In line; no change to store expansion strategy in China. HONG KONG Sector Property Weekly Wrap-up: REDA relaxes sales guidelines. TRADERS’ CORNER China Gas (384 HK): Trading Buy Range Tsingtao Brewery (168 HK): Trading Sell Range
CHINA Sector Coal: A gloomy 2019, downgrade to UNDERWEIGHT. Results I.T (999 HK/HOLD/HK$3.75/Target: HK$3.69): FY19: In line; no change to store expansion strategy in China. HONG KONG Property: Weekly Wrap-up: REDA relaxes sales guidelines. INDONESIA Update Charoen Pokphand Indonesia (CPIN IJ/HOLD/Rp4,650/Target: Rp5,000): Upgrade to HOLD; trading cheaply at near -2SD to mean PE despite expected 19.2% yoy net profit decline in 2019. MALAYSIA Results Kossan Rubber (KRI MK/HOLD/RM3.82/Target: RM3.70): 1Q19: Results beat our expectations as margins held up. Retained production expansion timeline ...