Shares in Hong Kong-based sourcing hulk Li Fung plunged roughly 20 percent on Friday after a Wal-Mart retailer reported an astonishing dump in core handling profit, analysts said.
The organisation tumbled 19.27 percent to HK$12.90 after it reported Thursday that core handling distinction fell 22 percent to $221 million in a initial half, due partly to timorous margins in a US placement business.
First-half net distinction rose 33 percent to $312 million, increased by a write-back for dual progressing acquisitions, while income rose 4 percent to $9.13 billion.
The association sources products for US retailers like Wal-Mart Stores, Abercrombie Fitch Co. and Kohl’s Corp.
Credit Suisse pronounced a formula “came in as a outrageous disappointment”.
“We see no signs of vital alleviation in a nearby tenure and really remote possibility that Li Fung’s three-year aim can be achieved,” it said.
JPMorgan pronounced it approaching a batch cost to “gradually redeem as we pierce into improved gain growth” in a second half of a year.
The association pronounced a core handling distinction was “relatively weak” though positive investors it was “very focused on holding a required stairs to urge a second half results”.
– Dow Jones Newswires contributed to this story –
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