|Bid||4.130 x 0|
|Ask||4.140 x 0|
|Day's range||4.120 - 4.190|
|52-week range||2.750 - 4.470|
|PE ratio (TTM)||20.00|
|Forward dividend & yield||0.23 (5.60%)|
|1y target est||4.92|
Shares of Li & Fung Ltd were set to open up 6.6 percent on Friday after the global exporter said it would divest its furniture, beauty and sweaters businesses for $1.1 billion. Li & Fung said it would divest the furniture, beauty and sweaters businesses, which are still under margin pressure with declining profitability, to a consortium comprising major shareholder Fung Holdings (1937) Ltd and one of China's top private equity firms, Hony Capital. UBS maintains a "buy" rating on the stock, saying the divestment of a shrinking business will allow Li & Fung to improve its capital structure and to focus on growth segments.
Hong Kong's Li & Fung Ltd said it would divest its furniture, beauty and sweaters businesses for $1.1 billion to a consortium backed by private equity firm Hony Capital, a deal that is expected to trigger net loss in 2017. The exporter, which supplies clothing and other products to retailers worldwide, said in a statement the group is expected to realise a loss of around $610 million attributable to discontinued operations including a write-down of goodwill. Li & Fung said it is at an attractive valuation as the businesses are still under margin pressure with declining profitability due to significant changes in market conditions.