Expensive Bird Invested Huge Stake In "BOY" Fry Or Acquisition?

The football industry is supported by many policies and has become a concept of some enterprises.

Listed companies in April 20th

The announcement said it had signed the letter of intent with Spanish Company Piramagen and 11MAC11 (the existing shareholders of the target company). It intends to invest 20 million euros in two phases to invest in THE BEST OF YOU SPORTS, S.A. (hereinafter referred to as "BOY").

It is understood that the pre tax profit forecast in BOY2015/2016/2017+2018 is 150/300/800 million euros. If the pre tax profit of BOY2015 is not less than 1 million 350 thousand euros, it will hold 30.77% stake in the first phase investment. If the pre tax profit of BOY2016 is not less than 2 million 700 thousand euros, the noble bird will hold its 18.18% stake through the second phase investment, and the total shareholding ratio will be close to 49% after two investments.

In addition, you can designate 2 of the 5 directors of the target company.

In fact, in the football reform plan that was released earlier, we need to actively promote the popularity of football, promote football competitions and encourage athletes to train athletes. This provides tremendous opportunities for enterprises to invest in football.

Some analysts pointed out that China's football industry is expected to usher in blowout development in the next 4-5 years.

According to the 2 trillion yuan market space of China's sports industry, the market space of football industry is more than 800 billion yuan.

Dividend policy release

Attracted many enterprises to borrow power, including Alibaba, Wanda and so on.

But there is a view that the investment of BOY is not a good move.

First of all, let's talk about BOY. Is it a cattle company?

In the announcement issued by 20 people, BOY said it is currently at the top level of all 500 brokerage firms in Spain.

The above announcement shows that the actual controllers of Piramagen and 11MAC11 are Pedro Granero and Oscar water respectively.

Among them, Pedro is a former royal Madrid club youth player and brother of Esteban Granero, a star player of the Royal Club of West Liga. He worked in the investment office of the Consulate General of Shanghai, Spain, and has a strong Chinese background. Oscar is the former director of the Real Madrid club media and the first team news officer.

In addition, BOY has served the Real Madrid chief goalkeeper Iker Casillas, a Real Madrid background, which is the biggest selling point of the investment.

But CEO, a famous international football journalist and sports media European company, does not agree with the above statement.

He pointed out that there are many flaws in the so-called "Real Madrid background" of BOY.

First, Perod is just a marginal broker. "The best work is his brother who has disappeared." Oscar has indeed been a real press officer. "But the Real Madrid press officer is also a cadre of grade cadres. He has done too many people and hardly ever gets much success". Three, there is a problem in Casillas's brokers, "do not understand why the announcement said that he served him, but he did not mention why he did not serve. After all, Casey did not retire"; fourth, although the announcement also listed other stars, it had nothing to do with BOY or lost its brokerage value.

"It is such a nearly empty shell company that announcements such a listed company such as the" noble bird ". In fact, in addition to being unable to reach the Chinese shareholders of Casillas, Alonso and Marcello, it is regarded as a laughing stock by all the Spanish insiders.

"It's true that Real Madrid is so good that it's not easy to keep up with fashion," he said. "It's very easy to be obedience to Real Madrid representatives, relatives and even former staff members, and to pull everyone away."

However, in the view of Guo Fanli, director of investment research at CIC, BOY should not be too pessimistic.

"BOY is located in Spain, where the football industry is developing. It is more convenient to obtain high-quality football resources. Even if the development is slow before, it will stimulate the rapid development of the company after joining the Chinese market".

According to BOY's official website, it is the first Chinese sponsor for Real Madrid, an electric car brand in Jinhua, Zhejiang.

Let's talk about the "noble bird". Can it revive its performance with the concept of football?

Unfortunately, this is the worst time for the apparel industry. Channel pformation and dealer inventory will affect the performance of a company.

Such as Anta, XTEP, 361 degrees, and other domestic sports apparel brands, have frequently heard of high inventory, close shop, loss and other news.

Even Lining, who is relatively well off today, has lost three yuan in 2014 (1 billion 979 million yuan in 2012, 390 million yuan in 2013 and 781 million yuan in 2014).

Similarly, the company that signed the Shanghai Stock Exchange in January 24, 2014 did not produce a satisfactory pcript at the beginning of this year.

According to the annual report of 2014, the operating income in 2014 was only 86.41% of the original plan, reaching 1 billion 920 million yuan, a decrease of 20.21% compared with the same period last year. The net profit of the shareholders belonging to the listed company was 312 million yuan, a decrease of 26.27% over the same period last year.

Although in the above report also indicated that the noble bird adjusted the direction of operation, the strategy, the management structure and so on, has been on the right track, but in the quarterly report issued in April 27th, its performance is still lower than expected.

A quarterly report shows that the company's operating income in the first quarter of 2015 was 523 million yuan, down 5.5% compared with the same period last year, and the net profit attributable to shareholders of listed companies was 77 million yuan, up 0.60% from the same period last year.

Under such circumstances, the way that the birds should deal with the decline of their performance is not to concentrate on upgrading and upgrading the clothing industry, but to invest in other popular industries.

In 2014, the company set up a strategy to upgrade the sports industry group based on the manufacturing of sporting goods and clothing and the coordinated development of various sports industries.

From the end of 2014, with the establishment of the European Union Investment Fund in Europe and China, the establishment of the China Europe acquisition fund, focusing on sports industry investment, and the joint venture of tiger sports to set up the 2 billion industry fund in January 2015, and then to the investment BOY, is the best embodiment of the strategy.

In this regard, Guo Fanli said in an interview that in this way, enterprises can get new profit points, promote speculation and attract investors and produce synergy to a certain extent, so as to solve the capital problem of sports investment.

However, it is not a permanent solution. "Football business is difficult to achieve overnight. At this time, the main business performance of garment industry has not been greatly reversed, and the company will face some financial crisis".

As for the Chinese youth players' training in Europe, which is mentioned in cooperation with BOY, and the integration of Chinese and European football resources by using the capital market and the Internet dual platform, Guo Fanli believes that the former focuses on controlling the quality of training, while the latter focuses on making Chinese European football resources complementary, and these are difficult to do well in a short time.

In addition, the Research Report of China Merchants Securities and CITIC Securities also shows that the main business of the company is lower than expected, the cost control is lower than expected, the progress of the epitaxy layout and the investment return are lower than expected, the follow-up cooperation with tiger and BOY is lower than expected, and the uncertainty of the subsequent strategic layout is all the potential risks.

But it has to be said that the above move can be attributed to the pformation of the sports industry, which is a capital best era, capital from the real economy crazily into the capital.

In some cases, it can solve the pressure of corporate financing.

According to public information, at the beginning of the listing, the precious birds raised 943 million yuan of funds, and in December of that year, it submitted an application for issuing 800 million yuan corporate bonds, which was used to supplement operating capital.

In addition, the company's share price has increased from 16.70 yuan in 2015's first trading day (January 5th) to 46.39 yuan in May 6th, up 178% in four months.

But capital operation is also supported by actual performance.

In the first quarter of last year, poor performance and performance goals in the first quarter, and the layout of the sports industry has not yet become a climate, need continuous follow-up, the stock price has continued to rise, which in Guo Fanli's view is, "speculation is bigger, more bubbles."