Premium Essay

2777.Hk Research

In: Business and Management

Submitted By examtips
Words 375
Pages 2
As mentioned by the GS analysts in their Equity research report, there is a rosy growth for the coming fiscal years (2012). It is not hard to understand this due to the below 2 reasons:

A clear market leader – Building on its 80-year heritage, CTF enjoys the largest market share of 12.6% and 20.1% in China and Hong Kong, respectively. Its retail network of 1,506 stores as of Sept 2011 is also the largest among peers (such as Luk Fook 590.HK) and Chow Sang Sang (116.HK). There is no doubt that CTF can enjoy a high growth when compared with LF and CSS for the 2012.
Source: Frost & Sullivan, AAstocks

Vertical integration - CTF produces about 50% of gold and 80% of jewelry products in house. The higher-than-average self-production ratio allows CTF to closely monitor product quality and react to market trend better. CTF currently has 9 jewelry factories and 3 diamond cutting and polishing factories. The costs involved in production will be greatly reduced which can directly and indirectly increase the profit margin. CTF is also a site holder with Diamond Trading Company (DTC), enabling good access to high quality diamonds. Among HK listed jewelry retailers, only CTF and Chow Sang Sang are DTC site holders in Hong Kong.


Financials Analysis from GS: We look for 40% growth in FY13E and 29% in EY14E

CTF has higher earning risk than LF and CSS
10% downside risk on CTF’s FY3/13 consensus earnings
We believe consensus forecast for CTF is too optimistic. In particular, consensus sees CTF’s earnings can still rise by 42% in FY3/13 despite achieving already high earnings growth of 82% in FY3/12 and a weaker macro environment in FY3/13. Instead, we consider a 27% earning growth for CTF in FY3/13 is more reasonable. Our FY3/13 earnings are about 10%...

Similar Documents

Free Essay

Pdf Dppdpdpdpd

...MORGAN STANLEY RESEARCH ASIA/PACIFIC Morgan Stanley Asia Limited+ Brian Y Leung +852 2848 5220 Jacky Chan +852 2848 5973 Angus Chan, CFA October 25, 2013 Industry View In-Line +852 2848 5259 China Property Asia Insight: Is 2014 Another Robust Year? We expect 2014 contracted sales growth to be flat while policy risk is on the rise given the strong ASPs. We downgrade our industry view to In-Line. We favor stocks with greater exposure to the mass market segment of non-top-tier cities; Vanke, CG and Shimao are our top picks. Industry view downgraded to In-Line: We are less optimistic than consensus about the contracted sales and ASP outlook in 2014; we expect flat growth amid the increased policy risk and steady demand. MSCI China Real Estate index has outperformed MSCI China by 15% in the last 12 months. The average share price upside of our coverage universe has narrowed to 11%. Favor non-HPR/mass-market: We are more skeptical about tier-one cities given the 56% jump in land sales volume YTD and heightened policy risk amid the surge in ASPs. Demand-supply in lower-tier cities should continue to improve; we think there could be a third consecutive year of zero growth/decline in land sales in 2013, bringing down inventory-turnover. 17% contracted sales growth in 2014: We expect our coverage universe to continue to gain market share but they may only achieve......

Words: 35281 - Pages: 142

Premium Essay

Newest Analysis Report on Vanke Ltd Co

...Results Review March 1, 2013 Jingbian NING SFC CE Ref: AVT719 Real Estate RESEARCH BUY Ziyi YU Vanke B (200002.SZ) Sales Top Rmb100bn on Recognition Upside Financial highlights (RMB mn) Revenue (+/-) Gross Profit (+/-) Net Profit (+/-) FD EPS (Rmb) (+/-) P/E P/B EV/EBITDA ROE Dividend Yield 2008A 40,992 15% 11,453 6% 4,033 -17% 0.37 36.9 -17% 4.7 2009A 48,881 19% 10,764 -6% 5,330 32% 32% 4.1 0.48 2010A 50,714 4% 15,016 40% 7,283 37% 37% 3.4 0.66 2011E 71,783 42% 20,776 38% 9,625 32% 32% 2.7 0.88 2012E 103,116 44% 26,778 29% 12,551 30% 30% 2.2 1.14 2013E 124,897 21% 31,733 19% 15,299 22% 22% 9.3 1.8 1.39 2013E 143,982 15% 36,535 15% 17,616 15% 15% 8.1 1.5 1.60 2012 EPS hit Rmb1.14, 9.1% better than we expected In 2012, operating revenue soared 43.7% YoY to Rmb103.1bn, and net profit rose 30.4% YoY to Rmb12.55bn or Rmb1.14/sh, 9.1% better than we had expected, mainly on faster sales recognition. A dividend of Rmb1.80 per ten shares (tax included) was announced. ► Faster sales recognition. Sales increased 43.8% YoY to Rmb101.58bn, and GFA sold surged 60% YoY to 8.99mn sqm, 15.1% better than we expected. But ASP was Rmb11,25/sqm, 中国价值投资网 最多、最好用研究报告服务商 narrowed 2.9% below what we expected, and gross margin 28.6 16.7 20.4 13.3 14.8 10.6 11.3 6.2 22.3 6.7 6.1 12.6% 0.4% 14.3% 0.6% 16.5% 0.8% 18.2% 1.1% 19.7% 1.5% 19.5% 0.4% 18.4% 0.4% 2.9ppt YoY to 26.0%. ► High revenue visibility. Consolidated......

Words: 8115 - Pages: 33

Premium Essay


...activities involving the subject has also allowed me to develop insight into the area. My professional training at the university requires adaptability and creative use of the resources available to produce graphics for real customers in the business world. Working as a student researcher during the last semester has further expanded my skills in data processing and graphic design, and more importantly, my ability to work independently. I feel, therefore, that I have not only the experience that you are looking for, but a number of other invaluable skills which would benefit me in this position. ------------------------------------------------- I would like to have the opportunity to discuss this position with you further. I can be contacted at 2777 7777 or 9922 0000 between 8.30am and 6.30pm. Thank you for your consideration and I await your reply. I am writing to apply for the IT Support/Help Desk Technician position with Business Networks, as advertised on Monash...

Words: 5359 - Pages: 22

Premium Essay

Jotun Case 2012

...1 JOTUN EXPANSION IN CHINA: CAN THE GROWTH CONTINUE? “The dynamic markets of China offer many opportunities to a company like Jotun. My job is to ensure that we approach these opportunities the “Jotun Way”. Executive Group Vice President Bjørn Naglestad Executive Group Vice President Bjørn Naglestad looks out on the busy Huangpu river from the windows of his office on the famous Shanghai Bund. Jotun has so far had great success in China, the company has close to 25% market share in its most important markets, and enjoys a successful JV with Cosco International. In September 2010, the company invited all employees, as well as international and local customers to celebrate Jotun in China during the Expo Exhibition. Two new factories are under completion, new products are included in the portfolio, and the company is expanding into new regions. China seems to become more important in all segments of the global Jotun Corporation. Mr. Naglestad ponders about the future of Jotun in China, particularly his thoughts evolve around the following questions: 1. How to succeed further with Jotun in China? 2. Will “The Jotun Way” be a successful recipe? 3. How to balance the JV and the wholly owned activities in the future? THE JOTUN GROUP The Jotun Group is one of the world's leading manufacturers of paints, coatings and powder coatings. Its operations cover development, production, marketing and sales of various paint systems and products to protect and decorate surfaces in......

Words: 6583 - Pages: 27