What the broker says...
Alco Holdings is mainly engaged in the design, manufacture and sale of consumer audio-visual, telephone and plastic products.
In a recent report, KGI Asia said the company reported a 39.8 per cent increase in interim net profit to HK$58.8 million.
KGI said Alco's 37.4 per cent growth in turnover to HK$2.39 billion was mainly attributable to an increase in sales of audio-visual products, with a significant contribution from its private labels.
'Looking ahead, the group plans to continue its focus on developing and enhancing the audio-visual product line,' KGI said.
'We expect the group to maintain a generous dividend payment this year to celebrate the 10th anniversary of its listing on the Hong Kong stock exchange.'
Trading at a prospective price to earnings ratio of six times and offering a yield of 5 per cent, KGI recommended investors to 'accumulate' the counter on weakness.
Graphic: now08gwz
