GIORDANO International has won a strong buy recommendation from brokerage ING Barings after a company visit to the clothing firm.
Giordano, which markets casual wear under its own brand name in Hong Kong, China, Taiwan, Singapore, Malaysia and Japan, impressed ING Barings with its continued aggressive expansion plans in the region.
Net profit growth is forecast at a compound average rate of 29 per cent over the next three years. Earnings per share should increase by 25 per cent over the same time period.
Giordano has legal rights to use the Giordano brand name in Indonesia and intends to establish a 50/50 joint venture company to develop its retail operations there.
The company also plans to establish a manufacturing operation in India in financial year 1996 and should open its first retail outlets there before the end of the year.
South Korean operations are expected to continue their strong performance in 1996 and may be consolidated into the group accounts as Giordano is planning a reorganisation.
