bj_toread_wang_fengToread spokesperson and rocker Wang Feng sings the praises of the adventure equipment firm. Photo: Beijing ToreadUBS: BEIJING TOREAD a ‘Buy’

UBS Investment Research reiterated its "Buy" recommendation on Beijing Toread Outdoor Products (SZA: 300005) with a target price of 18.2 yuan (recent share price 14.4).
Toread’s 2012 revenue and net profit were up 47% and 57%, respectively, in line with the research house's expectations.

“We believe Toread’s better-than-sector average (35%) revenue growth was due to its successful brand building, continued product improvement, and supply chain integration.

"Inventory fell 8%, inventory turnover days declined by eight days, and net operating cash inflow increased by 74%, indicating steady growth,” UBS said.

Meanwhile, Toread’s Q1 2013 revenue/operating profit/net profit were up 36%/39%/45% year-on-year, below UBS’s estimates.

beijing_toread_camping_equipment2Toread listed on the ChiNext in 2009.    Photo: ToreadWe believe continued sluggish end-market demand was the main reason for the lower-than-expected earnings.”

UBS said it believes Toread’s sold-out rate in 2012 was essentially flat year-on-year, remaining at the best level among the various apparel and home textile sub-sectors.

“As of end-March, the 2013 spring-summer order execution rate was 57%, also a good level.

“We maintain our 'Buy' rating as Toread’s valuation may be being dragged down by the downward shift of the sector average valuation.”

toread_mets3Toread recently 14.4 hkdBeijing Toread Outdoor Products specializes in the development and sale of outdoor products including tents, hiking boots, all-weather jackets and protective gear. Its business model is based on a combination of outsourced manufacturing, franchising, and directly managed distribution. The company has a self-owned brand: 'Toread'. At end-2012, it operated 1,395 stores, including 159 directly managed stores and 1,236 franchised stores.

magic_mets4Magic recently 3.66 hkdGuoco: MAGIC Still ‘Buy’ at 52-wk High

Guoco Research said it is maintaining its “Buy” call on cosmetic facial mask maker Magic Holdings (HK: 1633) with a target price of 4.05 hkd (recent share price 3.66).

“The share price recently surpassed a previous high at 3.55 hkd and closed at its 52-week high with exceptional turnover,” Guoco said.

The research house added that Magic’s 9-day RSI standing above 80 signaled a pullback in the near term for accumulation.

Guoco’s cut loss for Magic Holdings is 3.33 hkd with a consensus 2013 P/E of 14.7 times.

See also:

TOREAD: Outdoor Products Hiking Up Sales Amid Urbanization

MAGIC Shines

You may also be interested in:

You have no rights to post comments

Counter NameLastChange
AEM Holdings3.280-
Avi-Tech Electronics0.250-
Best World1.7100.030
Broadway Ind0.091-0.001
China Sunsine0.395-
Delfi Limited1.130-
Food Empire1.090-
Fortress Minerals0.310-
Geo Energy Res0.280-
GSS Energy0.027-0.001
Hong Leong Finance2.4900.010
Hongkong Land (USD)3.2000.010
ISDN Holdings0.3350.005
IX Biopharma0.0440.001
Jiutian Chemical0.026-
KSH Holdings0.3000.010
Leader Env0.052-0.001
Medtecs Intl0.1410.001
Nordic Group0.400-
Oxley Holdings0.100-
REX International0.164-0.002
Sinostar PEC0.135-
Southern Alliance Mining0.660-0.010
Straco Corp.0.470-
Sunpower Group0.2500.010
The Trendlines0.091-
Totm Technologies0.038-
Uni-Asia Group0.900-0.005
Wilmar Intl3.580-0.040
Yangzijiang Shipbldg1.5100.020

We have 1391 guests and no members online

rss_2 NextInsight - Latest News