Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
The independent financial analyst theScreener just requalified the general evaluation of LI & FUNG LTD. (HK), active in the Clothing & Accessories industry. As regards its fundamental valuation, the title still shows 1 out of 4 stars and its market behaviour is seen as risky. theScreener believes that the unfavourable environment weighs on the sector and penalises the company, which sees a downgrade to its general evaluation to Negative. As of the analysis date March 20, 2020, the closing price ...
KEY HIGHLIGHTS CHINA Sector Aviation Resilient pax traffic in an economic slowdown. Results AAC Technologies (2018 HK/HOLD/HK$46.45/Target: HK$45.20) 2018: Slight miss but not a surprise; upgrade to HOLD. CR Gas (1193 HK/HOLD/HK$31.80/Target: HK$34.30) 2018: Volume hike and dollar margin improvement lead to profit surge. ENN Energy (2688 HK/BUY/HK$77.10/Target: HK$87.10) 2018: Core profit up; volume expansion outweighs margin contraction. Li Ning (2331 HK/HOLD/HK$12.70/Target: HK$11.50...
Li & Fung reported another disappointing earning result that missed both consensus and our estimates. Revenue for the first half of 2018 was down almost 10%, and profits attributed to shareholders dropped by a staggering 19% on a like-for-like basis. Management continues to cite the overall promotional environment and weak retail sentiment in developed markets as the reasons behind its poor operational performance, and we think these headwinds will persist. It has also been a year and a half sin...
Li & Fung reported another disappointing earning result that missed both consensus and our estimates. Revenue for the first half of 2018 was down almost 10%, and profits attributed to shareholders dropped by a staggering 19% on a like-for-like basis. Management continues to cite the overall promotional environment and weak retail sentiment in developed markets as the reasons behind its poor operational performance, and we think these headwinds will persist. It has also been a year and a half sin...
Li & Fung reported another disappointing earning result that missed both consensus and our estimates. Revenue for the first half of 2018 was down almost 10%, and profits attributed to shareholders dropped by a staggering 19% on a like-for-like basis. Management continues to cite the overall promotional environment and weak retail sentiment in developed markets as the reasons behind its poor operational performance, and we think these headwinds will persist. It has also been a year and a half...
While there is no direct impact on Li & Fung’s book of business from the initial list of China imports into the U.S., there is a risk that the subsequent USD 200 billion list of goods that may be subject to a 10% additional tariff could affect Li & Fung’s trading business. As a result, we revise our fair value estimate for the company down to HKD 2.89 from HKD 3.06 to reflect this heightened risk. We also lift our uncertainty rating on Li & Fung’s cash flow and valuation to very hig...
While there is no direct impact on Li & Fung’s book of business from the initial list of China imports into the U.S., there is a risk that the subsequent USD 200 billion list of goods that may be subject to a 10% additional tariff could affect Li & Fung’s trading business. As a result, we revise our fair value estimate for the company down to HKD 2.89 from HKD 3.06 to reflect this heightened risk. We also lift our uncertainty rating on Li & Fung’s cash flow and valuation to very high, gi...
While there is no direct impact on Li & Fung’s book of business from the initial list of China imports into the U.S., there is a risk that the subsequent USD 200 billion list of goods that may be subject to a 10% additional tariff could affect Li & Fung’s trading business. As a result, we revise our fair value estimate for the company down to HKD 2.89 from HKD 3.06 to reflect this heightened risk. We also lift our uncertainty rating on Li & Fung’s cash flow and valuation to very high, gi...
While there is no direct impact on Li & Fung’s book of business from the initial list of China imports into the U.S., there is a risk that the subsequent USD 200 billion list of goods that may be subject to a 10% additional tariff could affect Li & Fung’s trading business. As a result, we revise our fair value estimate for the company down to HKD 2.89 from HKD 3.06 to reflect this heightened risk. We also lift our uncertainty rating on Li & Fung’s cash flow and valuation to very hig...
We lower our fair value estimate for no-moat Li & Fung to HKD 3.06 from HKD 3.14 following insight from the company’s 2018 investor day. We believe Li & Fung is set to endure a worse-than-expected top-line decline this year, as management anticipates more retail bankruptcies and deflationary pressure to persist. Despite efforts the company is putting into its Speed Initiative aka “supply chain of the future,†slow adoption and uncertainties around costs continue to weigh on our outlook f.....
As Li & Fung pays out its USD 520 million in special dividends and shares go ex-dividend, we adjust our fair value estimate for the company down to HKD 3.14 per share from HKD 3.54. We reiterate our no-moat rating, as we do not believe the company’s current business model will enable it to maintain a return on invested capital above the weighted average cost of capital. We also think online business-to-business platforms such as Alibaba make it easier for clothing and accessory brands to sou.....
Li & Fung’s planned redemption of USD 500 million worth of 6% perpetual securities has been well anticipated and does not affect our HKD 3.54 fair value estimate for the company. The move reduces the outstanding perpetuals to USD 650 million from USD 1.15 billion and will be paid for from the remaining balance of proceeds from its sales of three product verticals, which netted the firm USD 1.1 billion, and follows a special dividend payout of USD 520 million. Li & Fung shares are current...
No-moat Li & Fung has finalized the schedule for the special dividend payout from its asset sales announced in December 2017. With a record date of May 23 and a payment date of May 29, the HKD 0.476 per share represents 13% of our fair value estimate and equates to a payout of roughly USD 520 million. To reflect the cash outflow, we will adjust our fair value estimate down by HKD 0.476 to HKD 3.06 as the shares go ex-dividend on May 21. We still believe the company’s current share price more.....
We are maintaining our HKD 3.54 fair value estimate for no-moat Li & Fung after the company posted full-year results in line with our expectations. Li & Fung’s stock price fell 10% following the earnings release, which we suspect is partly due to tariffs concerns, moving closer to our intrinsic value. At present, we believe the company is fairly valued. A lack of follow-through into 2018 thus far from strong U.S. holiday retail sales figures is a drag. Li & Fung is set to endure top-...
We are maintaining our HKD 3.54 fair value estimate for no-moat Li & Fung after the company posted full-year results in line with our expectations. Li & Fung’s stock price fell 10% following the earnings release, which we suspect is partly due to tariffs concerns, moving closer to our intrinsic value. At present, we believe the company is fairly valued. A lack of follow-through into 2018 thus far from strong U.S. holiday retail sales figures is a drag. Li & Fung is set to endure top-...
We transfer coverage of Li & Fung, retaining our no-moat rating, but changing our moat trend to negative from stable. We cut our fair value estimate to HKD 3.64 from HKD 4.83 on lower projected free cash flow that is discounted at a higher rate of 8.9%, up from 8.3% previously, to reflect greater systematic risk. We believe Li & Fung is fairly valued at the current share price level. Our earnings forecast is well below Capital IQ market consensus by around 21% and 28% in 2017 and 2018,...
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