Joyce manages to grow with style
JOYCE Boutique retails and distributes designer fashion garments, retails homeware and publishes fashion magazines.
Brokerage SBC Warburg has put a buy recommendation on the stock, saying Joyce is inexpensive and has an attractive earnings outlook.
Joyce has matured into a professionally managed business with a solid earnings outlook, and has outgrown its image as purely a retailer to wealthy clients.
An alliance with Joyce still represents a most effective way for new fashion labels to enter the Hong Kong market due to the company's strong market position.
Joyce has been able to retain its franchise on labels such as Armani and Issey Miyake due to its marketing expertise, critical mass, and chief executive Joyce Ma's connections in the fashion industry.
The recent addition of solid performers like Hugo Boss is expected to cushion future earnings from swings in fashion trends.
Despite the stock's re-rating since last November's healthy interim results, it is still trading at a 43 per cent discount to the Hang Seng Index.
The discount is expected to narrow to 30 per cent as Joyce continues its robust performance and delivers an average 22 per cent earnings per share growth over the next two years.