BELLE's Performance Doubled, Brokerage Price Differences

BELLE International (1880.HK), a leading consumer company, has made a pretty good performance report, its net profit increased by 1.03 times to 1 billion 979 million yuan in 2007. However, its stock price was facing pressure in early trading yesterday, and its share price dropped by 7.5% to HK $7.12 at most. In the afternoon, the stock price rebounded under the impetus of capital inflow, closing at HK $8.08, or nearly 5%, and trading at about HK $179 million on that day. BELLE International released a new performance report, the broker's views differ, the target price is between 9.55 and 13 Hong Kong dollars. "The growth rate of mainland China's consumer market is significant, and the mainland consumer stocks will still be the darling of investors. We believe that BELLE will continue to maintain strong growth this year in its leading position in the footwear and sportswear market. " Zhang Wenqiang, manager of Hongkong Dao Heng Securities business development, told reporters. Zhang Wenqiang pointed out that Dao Heng Securities expects BELLE International's earnings per share from 2008 to 2010 to be 0.35, 0.49, 0.61 Hong Kong dollars, equivalent to 30% of the compound growth rate. Dao Heng expects that BELLE's share price can reach HK $10.63 in 12 months, which is equivalent to 30 times the 2008 forecast price earnings ratio. Morgan Stanley reported that BELLE international occupies a leading position in the women's shoes Market in the mainland, and the recent acquisition has paved the way for its expansion of men's shoes and casual wear shoes. It is expected to benefit from the new acquisition business in the second half of 2007 this year, supporting its sales growth by 56%. The main target is HK $12. JP Morgan released a research report to maintain BELLE's overweight rating. The target price was raised from HK $12.6 to HK $13. JP Morgan believes that BELLE's more than 2000 new stores opened last year can boost its growth in 2008, and it is estimated that sales of footwear will rise rapidly this year. Credit Suisse also maintained BELLE's rating over the big city, but reduced its target price from HK $12.64 to HK $12.35. Credit Suisse said that BELLE's ability to integrate new acquisition business is the focus of market attention. If successful integration is completed, BELLE's investment rating will have room for improvement. In addition, the Lehman brothers lowered the target price of BELLE from HK $11.1 to HK $9.55. In the report, Lehman brothers pointed out that the reason for lowering the target price is that the stock market is down so that investors are no longer willing to buy shares at a high market premium. However, Lehman still maintained BELLE's overweight rating, because BELLE's good basic factors have not changed, and its performance is also in line with expectations.