What the Broker says...
Hong Kong-based Boto International Holdings is a leading exporter of artificial Christmas trees, with Europe and the United States accounting for 21 per cent and 68 per cent of sales, respectively.
The company is benefiting from a growing preference for artificial trees over real ones.
Boto has diversified into producing outdoor furniture to stay productive at otherwise idle times, and reported a 2.6 per cent rise in attributable profit to HK$156.37 million for the year to March 31.
The company has strong fundamentals and enjoys a dominant position in a small but rapidly growing market - retail sales of artificial trees hit HK$800 million last year. Since its 1997 listing, it has garnered praise from analysts and investors.
Due to Boto's stable dividend payment record, a Core Pacific-Yamaichi report has placed a 'long-term buy' recommendation on its stock and suggested a price target of 32 HK cents.
Graphic: NOW16gwz
