Homepage
PR Newswire
I think this is the first time it released a positive profit announcement in the last 20 years, though I'm not sure if it is necessary since the large percentage gain was due to the low base of last year. Even then, it is still slightly lower compared to the pre-coivd and pre-protest profit in 1H19. I think the results can only be considered satisfactory.
Nevertheless, barring any major events, they should be on track to returning to pre-2019 levels of profit, where there were no huge impairments on margin loan receivables, and protests in HK. The massive campaign to add new stores in mainland, if successful, and the re-opening of borders between HK and mainland, are tail wind events to look out for.
But other unexpected and negative events somewhere down the road should not be discounted.
The company is now selling for HK$8.8b (up from HK$5.5b during the height of the HK protest in 2H19) and if we can assume a profit of HK$1b for 2021, and a modest profit growth rate for subsequent years, for an evergreen business and an established brand in a net cash position with growth plans, it looks cheap to me.
@AQ. Can't help you there. I'm as clueless myself. AAstocks is not very helpful to me. There's probably some discussion board for HK/PRC stocks out there but I have no idea where.
Nevertheless, barring any major events, they should be on track to returning to pre-2019 levels of profit, where there were no huge impairments on margin loan receivables, and protests in HK. The massive campaign to add new stores in mainland, if successful, and the re-opening of borders between HK and mainland, are tail wind events to look out for.
But other unexpected and negative events somewhere down the road should not be discounted.
The company is now selling for HK$8.8b (up from HK$5.5b during the height of the HK protest in 2H19) and if we can assume a profit of HK$1b for 2021, and a modest profit growth rate for subsequent years, for an evergreen business and an established brand in a net cash position with growth plans, it looks cheap to me.
@AQ. Can't help you there. I'm as clueless myself. AAstocks is not very helpful to me. There's probably some discussion board for HK/PRC stocks out there but I have no idea where.