"We've never seen so many great opportunities," President Bruce Rockowitz told Bloomberg. "It's almost unprecedented."
The trading firm, the biggest supplier of clothes and toys to Wal-Mart Stores Inc and Target Corp, generates over 60 percent of its sales in the US.
The company has a $1 billion acquisition fund, and is eyeing "multi-hundred-million-dollar-sales companies" in the US, he said.
The company may make "a series of acquisitions" within the coming months, and is also looking at companies in Europe and in Hong Kong, he added.
Li & Fung is accelerating efforts to buy makers of clothing, cosmetics, home products, accessories and shoes while retailers are stepping up reordering to meet growing demand. The company is looking for wholesalers, not merchants, Rockowitz said.
Market watchers generally have a positive view on the trading firm's latest expansion plans.
"The global financial crisis has indeed created great acquisition opportunities for companies that have been successful (in their operations) and sit on huge financial resources," said Dickie Wong, Research Director at Kingston Securities Ltd.
"And it is time now for Li & Fung to do something with their piles of cash again," he continued.
Aside from its strong operating performance, the company has also been known for its capability to scoop up assets and efficiently integrate them.
The planned acquisition moves indicate that Li&Fung's is getting more confident about the recovery in the US economy, Wong said.
Rockowitz said late last month that Li & Fung was seeing a lot of customer re-orders and increased re-orders. "We haven't seen this kind of action in two years. The US will lead the movement out of the recession."
Wong sees a bright outlook for the company. However, he cautions investors about a potential correction in the stock, citing its already high valuation.
The stock closed yesterday down HK$1.25, or 3.8 percent, to HK$31.40 compared with a less than one percent decline for the Hang Seng Index.
In a separate development, Trinity Ltd, a unit of the Li & Fung's parent company - the Li & Fung Group, is selling shares in a Hong Kong initial public offering.
The offering will consist of 452 million shares, of which 67 percent are new shares with the remaining being existing shares, according to a term sheet.
Trinity, one of the major luxury menswear retailers on the Chinese mainland, operates a portfolio of six menswear brands and a network of 345 outlets in 37 cities selling its own brands.
