SEHK:1234Luxury
China Lilang (SEHK:1234) Stock Cheapens As Margin Pressure Clouds Growth
China Lilang stock closed at HK$3.11, soft after a week and month in which the share price slipped around 8% to 10%. Yet the earnings story that landed after the bell is less about the latest tick in the chart and more about what the valuation now implies.
The headline this season is the gap between profit power and price. Trailing 12 month earnings sit against a P/E of 6.7x, while a discounted cash flow estimate of HK$5.39 suggests investors are still treating the menswear group with caution...