Li & Fung Ltd.
- ID: 1771352
- Standard & Poors
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Research Type: Full Analysis
Large scale and operational flexibility Cash generative, asset-light operations Strong financial flexibility and good liquidity A weaker outlook for sales growth and profitability Large exposure to the U.S. consumer market Increased leverage because of a strong acquisition appetite The rating on Hong Kong-based consumer goods trading and sourcing operator Li & Fung Ltd. reflects the company's large scale and operational flexibility; its cash-generative, asset-light operations; its strong financial flexibility; and good liquidity. These strengths are tempered by a weaker outlook for Li & Fung's sales growth and profitability, its large exposure to the U.S. consumer market, and its increased leverage as a result of a strong acquisition appetite. The company is 31.65%-owned by Li & Fung (1937) Ltd., a private...
Companies mentioned in this report are: Li & Fung Ltd.