Early last year, Li & Fung, the world's largest supply-chain management company, was being tipped to post an annual 24 per cent net profit growth to HK$1.08 billion, having reported a 51 per cent increase in net profit to HK$870 million the previous year.
According to an investment report from Core Pacific-Yamaichi, this would have been mainly the result of a full-year contribution from newly acquired merchandise sourcing company Colby, new contracts and the strong business growth of its major customers.
The strong 48 per cent increase in turnover would help Li & Fung weather the impending United States economic slowdown, the report said.
The investment house said Li & Fung, which is principally engaged in the export of consumer products, including textiles, fashion accessories and plastics, had a sound track record - doubling its net profit every three years through acquisitions and growth.
The report maintained a 'long-term buy' recommendation on the stock.
Graphic: THEN24gwz
