L'Occitane International SA

00973: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$54.00	Rfpbt	Wyzqnrj

L'Occitane's Multibrand Strategy Paves Way to Long-Term Margin Expansion; FVE Increased to HKD 36.60

Ivan Su

Nov 30, 2021

Narrow-moat-rated L'Occitane continues its streak of posting solid net profit growth, and management lifts its fiscal 2022 guidance following upbeat interim numbers. In addition to fine-tuning our near-term forecasts, we have incorporated the firm's acquisition of margin-accretive Sol de Janeiro into our valuation model. As a result, we lift our fair value estimate to HKD 36.60 from HKD 32.60 and view shares of L'Occitane as undervalued.

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