BELLE Shoe Industry Into Hongkong Hang Seng Index Constituent Stocks

September 7th, yesterday, China

Yesterday, Hong Kong shares rose the most.

Yesterday, the Shenzhen footwear industry, the leading shoe enterprise in China, the BELLE footwear industry (Hongkong listing name BELLE International), was formally incorporated into the constituent stocks of Hang Seng Index in Hongkong, becoming one of the 45 benchmark index constituent stocks. The market value weight accounted for 0.99%, and the total market value of more than 15 billion dollars was added to Hongkong's Hengzhi blue chips.

BELLE international is China's largest female shoe retailer, ranking second in the world's listed footwear companies (the first is Nike, its market value is $35 billion 860 million, third is Adidas, and its market value is 11 billion 150 million dollars), and the shoe giant is listed in the blue chips of Hong Kong stock, which once again wrote a new milestone in China's footwear industry.

Yesterday, BELLE international closed market 14.8 yuan, up 0.9 yuan, an increase of more than 6%, becoming the best performance on that day.

Jin Heng is not a low occupation ratio.

Guan Yongsheng, director and general manager of Hongkong Heng Zhi company, said that the current adjustment is taking into account that BELLE has long been in line with the criteria for becoming a constituent stock of the Hang Seng Index, and that its proportion is not low after the election. The number of pro forma is 0.99%, higher than that of many existing constituent stocks. Moreover, BELLE is also a relatively deficient domestic demand stock in the constituent stocks, which will increase the market representativeness of the Hang Seng Index.

At present, there are not many consumer theme stocks in the stock index company. Only Huarun Entrepreneurship (00291.HK), Si Jie (00330.HK) main income from Europe, the mainland is relatively small, so BELLE into the Hang Seng index is of great significance.

It is understood that, as an important reference index of the capital market, the criteria for selecting constituent stocks, besides market value, should also refer to the free circulation of shares, as well as the financial status and industry representativeness of enterprises.

In a short span of 3 years, it was included in the stock index of the Hang Seng Index, and BELLE handed in a satisfactory answer to the capital market.

According to the first half performance report released by BELLE international in the first half of June 30, 2010, BELLE achieved a total revenue of 11 billion 150 million yuan in the first half of the year, an increase of 19.7% over the same period last year, and a net profit of 1 billion 556 million yuan in the first half, an increase of 36.9% over the same period last year.

Outstanding performance investment bank optimistic

From 2007, BELLE international landed on the main board market of Hongkong stock exchange. Today, the sales volume of the company has doubled to 20 billion yuan, and the number of retail outlets in the country is over 1. The total number of shoes and clothing brands is nearly 30. According to the sales volume, BELLE accounts for six of the top ten brands of Chinese women's shoes.

In addition, BELLE shoe industry is the world's leading sports brand Nike and Adidas in China's largest distributor.

After decades of diligence and development, BELLE shoe industry, which has come out of Shenzhen, has made remarkable achievements for its peers.

According to information collected by reporters, since August, a number of investment banks have carried out the latest investment rating for BELLE, of which 7 major banks have raised their target price. The target price is between 12.7 yuan and 16 yuan, and 7 of them are optimistic about their development prospects.

BELLE's choice of franchising is different from that of many brands. This means that BELLE has to face the differential contradiction in the vast market of China. BELLE is faced with the contradictions in the vast market of China. BELLE is facing nearly 80 thousand employees scattered in more than 300 cities (including Hong Kong and Macau) in the personnel management. It is impossible to ensure that the operation of enterprises is in line with the centralized management of militarization. How can we manage it? In the words of investment bankers, although BELLE is in the retail industry with a low threshold, it has set up a very high management threshold. The BELLE mode can not be duplicated by the general enterprises, which is the reason why the discerning capital market gives 40 times the high price earnings ratio of BELLE.

Controlling supply chain is the key to success.

"BELLE has been listed for 3 years to be listed in the constant index blue chip, which reflects the broad recognition that BELLE has won Hongkong and international investors."

Wu Zhonghua, Secretary General of Shenzhen Leather Association, said.

Wu Zhonghua believes that BELLE's brilliant 3 years can not be separated from BELLE's founder and management for decades of efforts and perseverance.

Whether the footwear industry or retail industry, entry threshold is not high, which determines that BELLE started in a more competitive industry, with a unique business model, BELLE continues to surpass peers.

She said that after the listing of BELLE, international and domestic investment institutions have interpreted BELLE's success from various aspects, especially the macro research of business models, but in fact, they seldom find the answers from the internal operation of enterprises.

The industry is more concerned about the huge and complex supply chain of BELLE, which covers the whole process of design, development, procurement, production, marketing, distribution and retailing, but it is also necessary to quickly meet the demanding demands of women as the main consumers. How to achieve maximum supply chain control and fast supply chain operation is the key to BELLE's success.