Stock research on global mid-cap companies

Evaluate Research

Evaluate Research provides institutional quality stock research on small-cap and  mid-cap companies on a global basis, thus helping connect investors with the company.

At Evaluate Research, we provide free of cost to all investors a 20-25 page Initiation Report which evaluates in great detail all aspects of the company:  growth opportunities, catalysts, business description, competitive positioning, SWOT analysis, risks, etc.  In addition, we determine specific price targets for the company based on detailed 5-year complete forecasts of financial statements including IS, BS, CF, ratios, etc.  Finally, whereas many sell-side brokers offer sketchy and irregular ongoing maintenance research of companies, if not outright dropped or termination of coverage, at Evaluate Research we systematically monitor and regularly publish Update Notes covering quarterly earnings, major corporate events, etc.

All of the research reports are broadly and freely disseminated globally to leading Fund Managers and analysts who invest specifically in mid-size equities, and also on leading investment information platforms including: Bloomberg, Thomson Reuters, FactSet etc.

Stock research on global mid-cap companies, Evaluate Research

Equity Bottom-Up

For the second half of the year ended December 31st, 2016, the company&nbsp;reported revenue of HK$782.9 mn [in-line with our estimates] vs.&nbsp;HK$777 mn in 2H 2015, an increase of 0.7% YoY. Operating profit&nbsp;excluding fair value gains on investment property remained flat at&nbsp;HK$118.5 mn for 2H2016 vs. HK$117.9 mn for 2H2015. Adjusted EPS&nbsp;for the period came in at HK10.29 cents slightly lower than HK10.32&nbsp;cents reported during the second half of FY2015. The growth in revenue&nbsp;came on the back of a 4.1% increase in the company’s mainstay business&nbsp;of apparel sales in China Mainland and Hong Kong [81.8% of revenue].&nbsp;The revenue growth was negatively impacted by RMB depreciation,&nbsp;which on a constant currency basis would have been in the higher single&nbsp;digit range.
In its FY2016 annual report the company mentioned that the fall and&nbsp;winter collection sales fair held in early March this year saw a single digit&nbsp;growth from the corresponding season last year, indicating stronger&nbsp;confidence among the company’s distributors. E-commerce, which now&nbsp;accounts for 19% of the company’s Mainland apparel sales, continued to&nbsp;register phenomenal growth and for the entire year FY2016, sales grew&nbsp;by 111% YoY. In our call with management, they seem confident that e-commerce&nbsp;will continue to maintain its high growth rate over the next&nbsp;few years. Furthermore, at the macro level, overall retail luxury sales in&nbsp;China have rebounded quite well over the past 6 to 9 months. Based on&nbsp;all this, we genuinely believe that the worst is behind and after 3&nbsp;years of continuously declining sales the company might turn the&nbsp;corner in FY2017 registering at least single digit growth rate for the&nbsp;year. For FY2017, without taking into account any effect of further RMB&nbsp;depreciation, we conservatively revise our revenue growth forecast from -&nbsp;1% previously to +3%. With margins expected to remain stable we&nbsp;forecast EPS of HK25.32 cents, a 4.5% growth over the FY2016 number.
Analyst: Ajeya Patil

For the second half of the year ended December 31st, 2016, the company&nbsp;reported revenue of HK$782.9 mn [in-line with our estimates] vs.&nbsp;HK$777 mn in 2H 2015, an increase of 0.7% YoY. Operating profit&nbsp;excluding fair value gains on investment property remained flat at&nbsp;HK$118.5 mn for 2H2016 vs. HK$117.9 mn for 2H2015. Adjusted EPS&nbsp;for the period came in at HK10.29 cents slightly lower than HK10.32&nbsp;cents reported during the second half of FY2015. The growth in revenue&nbsp;came on the back of a 4.1% increase in the company’s mainstay business&nbsp;of apparel sales in China Mainland and Hong Kong [81.8% of revenue].&nbsp;The revenue growth was negatively impacted by RMB depreciation,&nbsp;which on a constant currency basis would have been in the higher single&nbsp;digit range.
In its FY2016 annual report the company mentioned that the fall and&nbsp;winter collection sales fair held in early March this year saw a single digit&nbsp;growth from the corresponding season last year, indicating stronger&nbsp;confidence among the company’s distributors. E-commerce, which now&nbsp;accounts for 19% of the company’s Mainland apparel sales, continued to&nbsp;register phenomenal growth and for the entire year FY2016, sales grew&nbsp;by 111% YoY. In our call with management, they seem confident that e-commerce&nbsp;will continue to maintain its high growth rate over the next&nbsp;few years. Furthermore, at the macro level, overall retail luxury sales in&nbsp;China have rebounded quite well over the past 6 to 9 months. Based on&nbsp;all this, we genuinely believe that the worst is behind and after 3&nbsp;years of continuously declining sales the company might turn the&nbsp;corner in FY2017 registering at least single digit growth rate for the&nbsp;year. For FY2017, without taking into account any effect of further RMB&nbsp;depreciation, we conservatively revise our revenue growth forecast from -&nbsp;1% previously to +3%. With margins expected to remain stable we&nbsp;forecast EPS of HK25.32 cents, a 4.5% growth over the FY2016 number.
Analyst: Ajeya Patil

Goldlion Holdings

Revenue Growth, Expected Turnaround