STOCKWATCH: Li & Fung higher after results

HONG KONG (AFX-ASIA) - Li & Fung Ltd shares were higher in midmorning trade, buoyed by the higher-than-expected 2000 results released by the company, dealers said.	    They said investors were impressed with the results, coming on the back of an economic slowdown in the U.S. and are also expecting the company to perform well this year.	    At 11:25 am, Li & Fung was up 0.45 hkd at 13.20 on turnover of 1.586 mln shares.	    The Hang Seng index was up 37.40 points at 12,987.89.	    Salomon Smith Barney analyst Mark Rosenfeld said the share price was higher due to the results but warned of the impact of the U.S. slowdown on the company's performance.	    "The results were up around 45 pct but the stock hasn't really taken off as yet."	    He said in 2001, about 75 pct of the company's revenue base will come from the U.S. and hence a slowdown there will be detrimental to the growth of the company.	    However, the company's management seems to be positive on the outlook.	    "We would be more confident if we see a bottom in the U.S. economy. There is negative savings ratio in the U.S. with consumers spending more than they have been earning for the last 18 months."	    However, he acknowledged that Li & Fung's products are cheaper and it deals with the private labels, which are the last items to be impacted in a slowdown.	    "I am not saying that they are not resistant (to a U.S. economic slowdown) but they are not altogether immune," he said.	    Rosenfeld said it would be impossible for the company to deliver organic growth this year.	    There will be growth this year, a large part stemming from its acquisitions concluded last year, he said, adding that he has a neutral rating on the company. 

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