Anta Cashed In HK $1 Billion 100 Million For Senior Executives And Family Members, The Biggest Decline In 3 Years

Anta sports, a leading sportswear company in China, issued a notice yesterday, saying that Ding Shizhong, chairman of the company and many executive directors and related personages, offered 70 million shares through Morgan Stanley. The placing price was HK $16.32, which was 8.21% lower than the previous closing price of HK $17.78. Based on these calculations, these shareholders total cash HK $1 billion 142 million.

Yesterday, Anta sports shares plunged 10.91%, the biggest one-day drop in nearly three years.

　 Holding Shareholder Cash HK $1 billion 142 million

Anta sports announced in the announcement that the seller of the placing includes: Chairman, chief executive officer and controlling shareholder Shi Zhong, executive director and controlling shareholder of Anta, Wang Wenmo and Wu Yonghua jointly owned by Anta International; executive director of the company's executive wife, director of the company's executive director Ding Shizhong and Ding Shijia's father, as well as the executive director of Lai Shi Xian's father-in-law, Ding Hemu's wholly owned Anderson investment. The allotment of 70 million shares, accounting for about 2.80% of the total share capital of the company, is the largest part of Anta international placement, accounting for 2.33% of the total share capital.

After the sale is completed, the shareholding ratio of the controlling shareholders will be reduced from 68.89% to 66.09%. At the price of HK $16.32, the controlling shareholders' cash amount amounted to HK $1 billion 142 million.

The notice also said that the board did not anticipate that the placement would have a significant impact on its daily operation or would change its top management. The placement is designed to broaden our investor base and enhance the liquidity of its shares.

Then, who will be the connecting Party of the placement? Will the follow-up be similar? Reporters call the company to understand the situation. Anta sports PR company told reporters that all the information about the placing has been reflected in the announcement, and the company has no more information to offer. But she also said that the placement of shareholders is a private financial arrangement, will not affect the operation of the company, shareholders will continue to maintain shareholder status, management has confidence in the company's prospects. As to whether the follow-up will continue to be reduced, the person said that there was no news at present.

From the calendar year's performance, Anta's performance is recovering. In 2009~2011, the turnover of the company was 5 billion 875 million yuan, 7 billion 408 million yuan and 8 billion 905 million yuan respectively, but in 2012, the figure dropped to 7 billion 623 million yuan, and in 2013, it continued to decline to 7 billion 281 million yuan. In the first half of 2014, the turnover of the company had reached 4 billion 122 million yuan, an increase of 22.4% over the same period in 2013, and the profit of shareholders should be 986 million yuan, up 33.9% over the same period last year.

　 Many agencies still buy "buy" rating.

In the capital market, Anta sports performance is eye-catching. Since the first half of 2012, the company's share price has fallen to HK $4 and has resumed its lost territory, rising to HK $17.78 at the end of October 15th this year, rising 4 times in two years. Yesterday, the news of shareholder reduction led to a sharp drop in the opening of the company's share price, closing at HK $15.84, breaking the selling price of HK $16.32. The decrease was 10.91%, the largest single day decline since the beginning of 2012.

Ouyang Xinzhou, a senior industry analyst at foresight Industry Research Institute, told reporters that Anta shareholders chose to reduce their holdings at this time. Should Taking account of the recent positive factors, we can alleviate the impact of the reduction event to a certain extent. "Anta and NBA China have just become partners, will launch online joint brand, online push NBA brand, Anta will further focus on the brand in a specific area, especially the basketball shoes market, management plans to achieve the first share of basketball shoes in the next two years. At the same time, ordering data will be gratifying and inventory turnover rate should be maintained at 4~5 months' health level. Therefore, the development prospects of Anta in the next 1~2 years are still worth looking at.

A Hong Kong stock analyst Also told reporters that Anta can be said to be a leader in the domestic sports brand, and its position is relatively stable, and the recovery trend has also been determined. However, she believes that Anta's growth is no small, and the reduction of shareholders at this time also proves that the current share price is also recognized by shareholders. "Besides, Anta's valuation is not low."

However, before the placement of shares, many institutions such as Bank of America, Merrill Lynch and UBS gave Anta sports a "buy" rating. Today, after its share price dropped by 11%, Deutsche Bank said that management still had confidence in the company's prospects and would maintain its controlling interests. Anta is still the first choice for sporting goods in mainland China. It has a good profit growth prospect and can cooperate with NBA China to enhance its sales of basketball products. The rights issue will result in short-term stock price pressure and provide a good opportunity to enter the market. Maintain a "buy" rating with a target price of HK $17.8.