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2009-6-3 11:37:00 a.m. HKT, XFNA
DJ MARKET TALK: Le Saunda +16.3%; Undervalued Retailer - ICEA
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| 1129 [Dow Jones] Le Saunda (0738.HK) +16.3% at HK$1.14, after setting fresh year-to-date high of HK$1.17 earlier today, likely supported by attractive dividend yield and low valuation. Stock down 6.7% yesterday post-results, released yesterday morning with net profit for fiscal year ended Feb. 28 down 7.7% on-year, as investors sold on news, while stock still +27.3% vs end-April. ICEA says despite last fiscal year's results being unappealing, could trigger focus on undervalued retailer as company declared final dividend of 4.5 HK cents, coupled with interim dividend of 3 HK cents, total payout ratio at 66.7%. Notes stock trading at 8.7X FY09 P/E, views as cheap vs industry peers. "Though its operation is small compared to Daphne (0210.HK) and Belle (1880.HK), the valuation gap to these rivals looks unjustified," says ICEA. Adds, dividend yield of 7.6% will provide good support; house does not rate stock.(SUT) Contact us in Hong Kong. 852 2802 7002; MarketTalk@dowjones.com
(Delayed by 1 hour)
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