Given China’s 3rd interest rate cut in 6 months it is worth comparing how the valuation of the HSI has historically traded against the stoxx 600. As shown below, it is interesting to note how it has typically traded above parity at around 1.2 (with a high of 1.8 in August 2009). Hence with the 12m fwd P/E of the HSI currently trading at a 7% discount to the stoxx 600, it still looks inexpensive by historic standards.
Belle International is a company involved in the manufacture, distribution and retail sales of shoes/footwear and sportswear. People need shoes no? This is highlighted as a top stock on our OTAS online app (it’s free, just enter your email address to access).
As shown in the Core Summary, upgrades to 12m fwd EPS over the last 1 month are in the top 10% of the industry, with earnings in 14 days, sector-relative valuation is flagging as a potential opportunity and the forward dividend yield is currently at 4.2% (this is towards multi-year highs and is covered by earnings in FY1 and FY2). Additionally, short interest levels are at 2 year lows and the upgrades to earnings over the last 1 month are notably divergence to the 1 month price action. Stock is currently a consensus BUY.