Luxury Shares Hongkong Gold Absorbing Second-Hand Store Was Hot.

The handbag shop at the Milan station at the entrance of Lan Kwai Fong, central Hongkong, is displayed on transparent glass walls. Chanel (Chanel), Louis Weedon (Louis Vuitton) and other brand-name handbags. "This is secondhand." A middle-aged man spoke to his companion in Putonghua. "Second hand is so expensive!" the companion of the same age should say, two people stop watch and leave.

Milan station, a twenty salesperson wearing a gentleman's hat and wearing black shirt, said that the mainland people had not yet bought and sold second-hand brand name bags. "They often throw it away without using it." Nevertheless, he said hopefully, "the mainland is the biggest." market "

Although the sale of second-hand luxury goods has not yet been accepted by mainland consumers, this does not prevent Milan from being on the fire in the capital market.

Today, Hongkong's local second-hand brand name handbags trading station Milan station, which is listed on the Hong Kong stock exchange, has IPO fund-raising of up to HK $201 million. The company's announcement shows that its public offering has been over subscribed 2179 times, making it a public subscription to Hong Kong stock.

The Milan station, which is a little bit of the mainland luxury market concept, has behaved like this. Luxury goods The brand is naturally unwilling to be mediocre.

The luxury brands headed by Prada (Prada) and Coach will reach the international capital market in Hongkong. They are preparing to raise at least tens of billions of dollars in the form of initial public offering (IPO) or Hongkong HDR.

Luxury companies can kill two birds with one stone if they earn money from Chinese consumers and earn money from Chinese investors.

　 Second hand shops are hot.

Among the 95 thousand retail investors who subscribed to Milan station, the success rate of only one hand (2000 shares) is only 1%.

For the international placement of institutional investors, the source said that the small scale new stock was won by large funds from Europe and the United States and the Middle East, and the international placement oversubscribed nearly 100 times, creating a new market record. Milan station prospectus shows that Jiayin international asset management and three Hongkong rich businessmen (Hongkong board former sushi director general Zheng Wei Tao, Li Wen paper chief executive Li Wenjun, Prince Edward jewellery clock chairman Deng Juming) spend nearly HK $58 million as a basic investor in Milan station.

The popularity of the market is beyond the expectations of the project investment team. "This is what we did not imagine." Wen Tian Na, managing director of Hongkong Investment Bank of China Merchants Securities, told the newspaper reporters that the investment banking industry did not have a backward conclusion as to whether the new concept of the secondary market and the capital market would be accepted.

Last Friday, Milan's OTC trading price surged 50%, making the market look forward to its listing today. In fact, the fry of Milan station owes much to the hot concept of luxury goods to some extent. Milan station buys second-hand handbags from the market and sells them again, involving up to 20 luxury handbags.

Wen Tian Na pointed out that the Milan station project reflects the market's demand for luxury type stocks and the welcome of the concept of mainland growth. He believes that luxury goods that will be listed in Hong Kong will be more popular and the door has been opened.

In May 20th, it was reported that Prada's initial public offerings in Hongkong had been approved for $2 billion, and is tentatively scheduled for listing in June 24th this year.

　　 Listing in Hong Kong is close to major markets.

The Milan station is priced at HK $1.67, corresponding to the 2010 P / E ratio of 20 times. Wen Tian Na expects that Prada and other international luxury brands in IPO will believe that the pricing will be higher and more aggressive.

The Dipped in Gold report released by CLSA shows that the average price earnings ratio of luxury brands listed in Europe and America and Hongkong is 20.9 and 20.8 times respectively in 2011. Among them, the United States listed Hermes price earnings ratio of 18.8 times, France listed on the highest price earnings ratio, 32.5 times.

According to Wen Tian Na analysis, there is still no luxury brand handbag stock in Hongkong. With the decline of the European and American markets, these luxury brands will highlight the future growth of the Chinese concept, and believe that there will be a premium, predicting the price earnings ratio or 25~29 times.

At present, the average price earnings ratio of listed luxury goods in Hongkong is 25~29 times the price earnings ratio will be 20%~39% premium. The president of the HKEx, Mr Xia Jia Li, told the media many times that after the Prada, HKEx will attract more luxury companies to list in Hong Kong.

Some international investment bankers have said that the listing of luxury brands to Hong Kong will be a major trend in the coming years.

He revealed that, apart from Prada, investment banks are also making progress with international brands such as Louis Weedon, Gucci (Gucci) and Chanel.

　　 Largest luxury consumer market

At the same time, international brokers and advisory bodies have released luxury reports and vigorously sang the demand for luxury goods on three sides of the mainland in the next ten years.

The CLSA report predicts that the demand for luxury goods and travel will increase by an annual average of 23% in three places on both sides of the Straits. The proportion of the three luxury goods market in the global market will rise from 15% to 44% in 2020. The report predicts that China's luxury goods market will increase to 74 billion euros in the next ten years or 0.6% of the country's GDP, making it the world's largest luxury consumer market.

According to the Mccarthy report, Louis Weedon now has 36 stores in 29 cities in mainland China, Gucci has expanded faster and has 39 stores, compared with 2005, the Hermes store has grown 4 times to 20.

According to Mccarthy's report, China's urbanization will make more urban residents join the ranks of luxury consumers. At present, Shanghai and Beijing residents have purchased 21% of luxury goods, and 28 cities such as Chongqing, Guangzhou and Shenzhen have followed. 5 years later, 60 Chinese cities will become luxury consumers.

Because of his love for luxury goods, a lady from Guangzhou, even in the Gucci flagship store in Guangdong Road, Hongkong, bought a handbag worth HK $4800 because of the problem of credit card and the unhappiness of the shop assistant. "European style is classic." She said.

It is worth mentioning that, in an interview with Bloomberg, Lou Frankford, President of Lew Frankfort, said that the company would issue pre depositary securities to Hong Kong. Meanwhile, he said that in the next five years, its capacity in China would be reduced from 85% of its global capacity to 40%~50%, and the production capacity would be transferred to countries with lower wages such as India, Vietnam and Philippines.

At the same time, he said the sales plan will increase to $500 million in 3 years. Thus, for world-class and luxury brands, China is changing from "world factory" to "World Gold Rush".