Li & Fung's FVE Decreased to HKD 3.64 With Negative Moat Trend as We Transfer Coverage

It's Been Time to Revisit Li & Fung in Recent Weeks

Li & Fung Continues to Be Undervalued Despite the Share Price Spike

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

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Equity Bottom-Up

<p>As Li &amp; Fung pays out its USD 520 million in special dividends and shares go ex-dividend, we adjust our fair value estimate for the company down to HKD 3.14 per share from HKD 3.54. We reiterate our no-moat rating, as we do not believe the company’s current business model will enable it to maintain a return on invested capital above the weighted average cost of capital. We also think online business-to-business platforms such as Alibaba make it easier for clothing and accessory brands to source…</p>

As Li &amp; Fung pays out its USD 520 million in special dividends and shares go ex-dividend, we adjust our fair value estimate for the company down to HKD 3.14 per share from HKD 3.54. We reiterate our no-moat rating, as we do not believe the company’s current business model will enable it to maintain a return on invested capital above the weighted average cost of capital. We also think online business-to-business platforms such as Alibaba make it easier for clothing and accessory brands to source…

Lowering Li & Fung’s FVE as Company Shares Go Ex-Dividend

Li & Fung Ltd

Lowering Li & Fung’s FVE as Company Shares Go Ex-Dividend