HK-listed footwear maker Stella International climbs; Daiwa upgrades to 'buy'

Stella International Holdings

25/09/2019 04:14

** Shares of footwear products maker Stella International
Holdings Ltd  1836.HK  rise as much as 4.8% to HK$12.18, their
highest since Sept 20 
    ** Brokerage Daiwa upgrades Stella to "buy" from "hold" and
raises target price to HK$18 from HK$13.6, saying Stella has
made meaningful progress in restructuring its businesses, and
the firm is back on a margin-recovery footing  
    ** Daiwa says Stella has gone through a lost period due to
factory migration and restructing costs and the stock is
expected to rerate quickly once the market has greater
confidence in the firm's margin expansion outlook
    ** Stock rebounds from six sessions of losses 
    ** As of Tuesday's close, stock up 25.1% this year
    ** Stella has underperformed the Hang Seng Commerce &
Industry Index sector  .HSNC  by 11.9 percentage points in the
past one month
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
falls 1.1%, and the benchmark index  .HSI  slides 0.8%

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)