Giordano'S Medium-Term Net Profit Is On The Rise With Strong Recovery.

In the first half of June 30th, it benefited from rapid growth in sales and closing shops in key markets.

(0709.HK) net profit rose 19.5% to HK $208 million.

Liu Guoquan, chairman of the group, said in a performance press conference that the group had no longer pursued the opening of shops in the more expensive tourist areas in recent years, and also drove profit growth. He believes that there is still room for reduction in Hongkong rents. 1/3 will only be re entered in Tongluowan and Tsim Sha Tsui when further falls, but no flagship store will be opened.

On the mainland side, Liu Guoquan said he would focus on franchisee development.

Total sales in the first half of this year amounted to HK $2 billion 736 million, an increase of 2.4% over the same period last year of HK $2 billion 672 million and an increase of 5% based on fixed exchange rates.

Sales in the same store increased by 6% year-on-year, including 12% in mainland China and 8% in Hongkong, 12% in Taiwan and 9% in other parts of the Asia Pacific region, but the performance of the countries in the region was complex, while the Middle East increased by only 1%.

Although Liu Guoquan expects growth of same store sales in the second half of this year will continue, he disclosed that the group growth slowed to 3% in the three quarter to August 10th.

It was 57.2%, 140 basis points lower than the same period last year, mainly due to the depreciation of Southeast Asian currencies during the period, which led to higher cost of products and increased discount rate for clearing stock.

However, Liu Guoquan pointed out that the depreciation of the RMB this week will benefit the export of products to the Southeast Asian market, while overseas procurement will continue to push ahead with the local cost advantage. The group has set up factories in Bangladesh.

The increase in discounts pushed the group's inventory up to June 30th by 11.9% to HK $453 million compared to December 31, 2014, and the number of inventory turnover days also decreased from 3 days to 70 days.

As of June 30th, the group had net cash of HK $1 billion 29 million, an increase of 9.5% over the same period last year.

Liu Guoquan disclosed that RMB accounts for 3-4 billion yuan in cash flow, but it is all used to settle accounts in the mainland for business operations, which has little impact on the group.

Yesterday, I.T Limited (0999.HK), a fashion retailer also doing business in the mainland, had a huge impact on RMB devaluation due to its 1 billion 187 million yuan deposit in the mainland, with a deficit of HK $60 million, and I.T Limited 0999.HK (0999.HK).

In addition, 1212.HK, a Sogo operator in Hongkong's SOGO Department store, has a total of 2 billion 345 million yuan in deposits and financial instruments, which is expected to have a greater impact on earnings.

Zhou Dafu, who has 6 billion yuan in deposits, agrees with Giordano (0709.HK) in response to 1929.HK.

Giordano (0709.HK) announced an interim dividend of HK $12.5 per share, an increase of 19.1% over 10.5 Hong Kong cents in the same period last year.

Strong performance and

Deutsche Bank AG (DBK.DE), the Deutsche Bank, raised the Giordano (0709.HK) rating and target price, and now the rating is "buy", the target price has risen to 4.51%, which is 17% higher than the original target price.

Giordano (0709.HK) reported a full day gain of HK $4.28 on Friday, up 6.2%, which has risen 26.3% since 2015.

Only by constantly developing and innovating, Giordano can not be knocked down in the future market.

Enterprises can be bigger and stronger when they encounter problems and find countermeasures in time.