 |
|
  |
2009-6-25 08:36:00 a.m. HKT, XFNA
DJ MARKET TALK: 361 Degrees' Discount May Be For Good Reasons
|
| |
| 0826 [Dow Jones] 361 Degrees (1361.HK) pricing IPO at HK$3.61/share, toward lower end of HK$3.15-HK$4.35 range, appears to imply strong debut performance almost certain, as IPO price represents 11.5X forecast FY09 earnings, vs sector leader Li Ning's (2331.HK) 21.6X, Anta Sports' (2020.HK) 19.8X, China Dongxiang's (3818.HK) 17.3X. Still, would be naive to assume 361 can match those three's valuations; CLSA argues 361 should trade at 40%-50% discount vs Anta, Dongxiang given weak brand equity, poor operating cashflow, high inventory risk in retail channel, short track of retail channel management. 361 will make its debut Tuesday.(RLI) Contact us in Hong Kong. 852 2802 7002; MarketTalk@dowjones.com
(Delayed by 1 hour)
-0-
Copyright (c) 2009 Dow Jones & Company, Inc. |
| |
News Provided by XFNA |
| |
|
| Copyright(C) AASTOCKS.com Limited 2000. All rights reserved |
| |
|
|
|
