17 July 2013 – trading update
The Chinese branded sportswear group has announced a positive trading update following yesterday’s AGM with trading at Naibu’s 3,150 branded outlets remaining strong. Although in the short term there may be some caution from shareholders as the company is re-organising and expanding its production capacity the company is expecting no disruption to productivity during the changeover. As such, it believes that it will achieve full year forecasts and with increased production capacity will be well-placed for further growth going forward. There is clearly considerable scepticism from investors as forecast earnings per share for 2013 are 55.4p, putting the shares on a p/e ratio of just 1x. The shares remain a SPECULATIVE BUY.