I.T just announced their half-yearly results and, as expected, they are horrible. Revenue is down slightly to HK$2,939million from HK$2,965million. Profit before income tax dropped to HK$35.5 million, from HK$135million in 2012. This is actually pretty bad beyond my forecast. I expected them to make around $200million before tax this full year but it seems it is far too unlikely. It has the worst result since 2008/9 during the financial crisis. It is no wonder why Templeton is selling it despite buying a lot of it for north of $4 per share. Well they still have 8.79% right now down from over 10%. In other words, they still own a lot of it. So when the biggest bull is selling out, it is probably time to go up?
After announcement, the share price didn’t even respond to it at all and stayed flat. I do not know why the market would give such a high premium for a company like this.