What the Broker Says...
Hong Kong-based Giordano International concentrates on retail and distribution of value-for-money clothing and accessories under the Giordano brand.
According to a recent ING Barings report, Giordano has 'established itself as a leading casual apparel retailer in China'.
Turnover in the first half of this year rose between 8 and 9 per cent year-on-year. China and South Korea continued to report strong growth (30 per cent year-on-year).
Barings expects the group's operation in China (357 retail stores as of last December) to surpass Taiwan, the largest market last year, to become the second-largest market for Giordano behind South Korea this year.
In October, the company and China Resources Enterprise announced a HK$100 million joint venture to develop second-line retail and wholesale businesses. Barings has maintained a 'buy' recommendation on Giordano's stock and suggested a 12-month price target of HK$5.30.
Graphic: NOW15gwz
