Lining XTEP Receives Attention From Foreign Funds

The Olympic share speculation in the A share market has been gradually extinguished. The concept of the Olympic Games in the slow stock market has just been ignited.

The daily economic news learned yesterday that Carlyle, one of the largest private equity funds in the world, invested 2 million 229 thousand shares of XTEP International (01368, HK) in June 30th.

In less than a month, Carlyle, which has already been a strategic investor, has invested 25 million 404 thousand shares of XTEP International 2 times, increasing its shareholdings from 158 million 500 thousand to 183 million 900 thousand shares, with a market value of about 517 million Hong Kong dollars.

Not only Carlyle, executives of listed companies and foreign fund companies have appeared in the list of Olympic stocks.

Caire 86 million Canadian dollar plus XTEP daily economic news learned from XTEP international, plus the June 30th holdings, Caire investment has increased 2 holdings of 25 million 404 thousand shares of XTEP international, involving 86 million Hong Kong dollars, the average price increase per share is about HK $3.39.

However, XTEP international, which rose 3.3% yesterday, only reported HK $2.81, which has fallen by 31% compared with the initial issue price.

Carlyle's investment holdings were also slightly depleted, with a rough calculation of HK $14 million.

However, compared with the overall investment income, 14 million is only a small number.

In June 2007, Carlyle invested 30 million dollars in the form of convertible loan agreement and held a 9.6% stake in XTEP international. After listing, it will be diluted to 7.21%, with a total holding of about 158 million 500 thousand shares.

At first, the price of Carlyle's investment in shares was only HK $1.55, much lower than XTEP International's issuing price of HK $4.05.

After two increases, Carlyle investment has risen from 7.21% to 8.36%, and the number of shares has increased from 158 million 500 thousand to 183 million 900 thousand, with a market value of HK $517 million.

According to XTEP international yesterday's closing price of HK $2.81, Carlyle invested 183 million 900 thousand shares in the book profit of HK $185 million.

According to XTEP International's prospectus, Carlyle's stock holdings have only six months' ban period. In other words, in early December this year, Carlyle investment has the right to sell stock cash.

XTEP international has been very willing to link the Olympic Games with the Olympic Games as the new two month's IPO before the Olympic Games.

When executives visit, they often talk about the Olympic effect on sports products sales. It is undeniable that the Olympic Games can bring huge economic effects.

For XTEP international, JP Morgan said on Wednesday that it gave the stock a "overweight" rating with a target price of HK $4.3.

XTEP international is one of the leading sportswear manufacturers in the mainland, with a market share of 3.4% in the mainland, the bank said.

The bank believes that in the case of rising market share, XTEP international revenue and net profit compound growth rate can reach 42%, and the future outlook is optimistic.

By the way, JP Morgan is also one of XTEP International's IPO sponsors.

Lining executives 63 million Hong Kong dollars from the purchase of XTEP international and the new Olympic shares are different, Lining (02331, HK) can be regarded as the old Olympic shares.

Since Lining was seen as the leader of the Olympic concept stocks, the reduction of chairman Lining in May led to investor concerns about Olympic stocks.

This time, however, Lining has brought good news to us.

According to the information disclosed by the Hongkong stock exchange, Zhang Zhiyong, chief executive of Li Ning Co, increased 1 million 384 thousand and 616 thousand shares respectively in July 3rd and 4th, with an average price of HK $17.056 and HK $16.925 per share, involving a total of HK $34 million 31 thousand and 300.

With these two holdings, since June, Zhang Zhiyong has bought 7 shares of her own stock 7 times, ranging from 16.925 Hong Kong dollars to 21.3 Hong Kong dollars, involving about 63 million 443 thousand and 300 Hong Kong dollars, and the shareholding has climbed to 0.6% from the end of May.

Lining rose 5.226% yesterday to close at HK $17.72.

The company website shows that since Lining was listed in Hongkong in June 2004, Zhang Zhiyong has been the chief executive officer and executive director of the company, responsible for the overall strategy of the group and coordinating the matching development of human resources, information resources and financial resources with the group brand.

Prior to that, Zhang Zhiyong served as the chief financial officer of Beijing Lining sporting goods limited.

Lining bought cash in May, and Zhang Zhiyong bought it in June. He did not know which drama he was singing after he bought it.

However, in the future, Zhang Zhiyong's "self pocket" still gives us some inspiration.

Credit Suisse points out that the recent decline in Lining's stock price is due to some overdue worries about the expected growth in post Olympic performance. I believe Lining will release a good mid-term performance in August, and the recent fall of the stock also gives investors opportunities to buy.

DBS analyst Li Yongliang predicted that Lining will rise more than 10% before the Olympic Games.

The increase of foreign funds in the capital airport BeiJing Capital Airport (00694, HK) is another type of Olympic concept stocks.

In July 3rd, TROW, an American fund management company, declared that it increased 3 million 400 thousand shares of the capital airport at HK $6.549 per share, increasing its shareholding from 8.99% to 9.18%.

This is also the second increase of the fund since June. In June 10th, TROW bought 3 million 844 thousand shares of the capital airport at HK $7.061 per share.

Singapore's Government Investment Company (GIC) has recently been added to the capital airport.

Although in June 17th, GIC reduced the capital airport at a price of HK $6.85, but it was just making the difference.

In June 27th, GIC bought 1 million 616 thousand shares at HK $6.24 per share, with the latest shareholding ratio of 15.02%.

The capital airport rose 5.89% yesterday to close at HK $7.19, and the effect of two institutional investors' holdings is obvious.

In this round of rebound, the Olympic concept stocks did not show much alarming performance.

Now that the Olympic Games are near, the short-term hype of the Olympic concept stocks is only expected.

Analysts pointed out that if the market did not match, the Olympic stocks speculation should have already begun.

After various funds are secretly deployed, it is expected that the Olympic stocks will be briefly hyped up in July and August.

In terms of stocks, Lining, Tsingtao Brewery and the capital airport will still be popular stocks. Although the above stocks have been more attractive after the first half of the year, the market sentiment is not as good as before. Therefore, investors should pay attention to the basic value of shares and the whole market trend when buying and selling Olympic stocks.