BELLE International Sales Growth Exceeded Expectations In The Third Quarter

October 19th, Morgan Stanley issued a report that BELLE International (01880) third quarter sales growth and opening up of the same store exceeded expectations, maintaining BELLE as the core share of the mainland consumer sector. Entering the market The target price is 14.7 yuan and the rating is "overweight".

The report refers to the shoe business of BELLE international in the period from 7 to September. Sale Recorded a 18% annual growth rate, which is better than the annual growth target of the big Mo 14.1%; the sportswear business grew 3% in the same quarter in the third quarter, lagging behind the 7% target of the bank. Last season, the company added 591 shoe retail stores and 211 sportswear shops, which increased the number of stores to 7762 and 3356 respectively, up from 7586 and 3218 expected by DMO.

Citigroup said BELLE international core shoe business was strong in the third quarter, with an overall increase of 18% in the first 9 months, 4% to 13% of its profit forecast, and a target price of 12% to 17 yuan from 15.2 yuan to maintain the "buy" rating.

Earlier, BELLE international management objective increased sales by 15% in the 2010 fiscal year, while the bank believed that BELLE could achieve its goal. It also pointed out that the group's sports apparel business was on schedule, believing that the market had room to increase its profit forecast, and that its business leverage had not yet been fully developed. Citigroup BELLE International 2010 annual profit will be better than expected to 3 billion 350 million yuan.