Baili Shoes Increases Brand And Profits

Last week, Bank of America reduced its holdings in CCB (0939). The market generally interpreted that Bank of America was only selling profitable investments to cash out to supplement its own capital. However, Li Ka shing's reduction in holdings in Bank of China (3988) caused speculation, because investors still remember Li Ka shing's vision of selling shares of China Ocean Shipping (1919), China Shipping Jiyun (2866) and China Southern Airlines (1055) at a high level in 2007, Now the selling of BOC is even lower.

This reduction of Li Ka shing's holdings may be purely a restructuring and balance of the portfolio, or it may be an early shipment before the sale of shares by Royal Bank of Scotland, or it may be a bearish prospect of Bank of China, more likely it is a combination of the above three factors.

Looking ahead to this week, the rising trend of Hong Kong shares from the end of October last year and the investment climate have been hit by the above events. It is expected that Hong Kong shares will be soft again and again.

Stock in promotion: China Shenhua (1088) has a high proportion of contracted coal sales. Although Shenhua received less benefits when the coal price rose sharply, its sales price was also less affected when the coal price weakened.

The spot coal price in the mainland is under pressure, but it is expected that Shenhua will still be able to raise the contract price in 2009, because the current contract price of Shenhua is still far lower than the spot price. In addition, Shenhua's power business can also provide stable profits and cash flow for the Group.

In the first half of 2008, the net profit of Belle International (1880) fell by 1.4% to RMB 990 million, and the current profit excluding special items increased by 38% to RMB 954 million.

Belle has a leading position in the women's shoes market, with strong brand positioning and good supply chain management. Its huge brand portfolio can bring lasting growth and reduce the risk of a single brand. New brands can promote sales and profit growth in the long run.

Benefiting from economies of scale, it is expected that Belle's profit margin can be improved, and its performance in 2009 will benefit from the profit contribution of new stores opened in 2008.

Editor in charge: vivi