XTEP'S Low Valuation Promotes "Back To Port A"

In November 2, 2016, PEAK sports from the Hong Kong Stock Exchange delisting, marking the 3 months of PEAK sports privatization draw a successful conclusion.

Due to the listing of Hong Kong stocks in China

Generally low valuation, the industry generally believe that

Privatization will lead to the return of sports to A shares, and guess who will be the next sports brand.

Return to the prelude of A shares?

According to the world clothing and shoe net, in January 2nd, XTEP International announced that the board had decided to buy publicly repo not more than HK $150 million.

Shares.

At the same time, the trustee of the authorized share award scheme has bought shares in the market and holds such shares to be reserved for future share award of the share award scheme.

In addition, the company has received notice from its chairman Ding Shuibo and several senior management that they have increased their market share and intends to continue to increase their holdings in the company.

XTEP International Board believes that the repurchase shares are in line with the overall interests of the company and its shareholders.

First, the valuation level of shares has been significantly lower than the company's performance and basic value; second, the group's 3 year rectification is about to be completed, and the expected financial performance will be substantially improved in 2018 and the cash flow will be stronger than in the past three years. Third, in June 30, 2017, the group's financial position was stable and its net cash value per share was 1.16 yuan (about 1.37 Hong Kong dollars), accounting for about 48.6% of the group's net asset value. The Group expects strong cash flow and healthy financial conditions in the future to facilitate the company's proposed repurchase shares, while maintaining sufficient financial resources to ensure the sustainable development of the group business.

It is worth mentioning that Ding Shuibo held a total of 6 million 492 thousand and 500 shares in from December 12 to 27, 2017, holding 1 billion 333 million 867 thousand and 500 shares after the change, accounting for 60.04% of the shares issued by XTEP.

XTEP's move to buy back shares in the new year is seen as a prelude to privatization.

Ren Huitao, a member of the Fujian Sports Industry Research Center, said: "the Chinese sports industry at the draught is undoubtedly a great commercial imagination for the domestic sports brand.

The privatization of PEAK in the same city is already in the first place. XTEP's move can be seen as a plan to return to A shares as a privatization process.

As early as more than a year ago, PEAK has successfully privatized, opening sports brand to A shares.

In September 2009, PEAK sports was successfully listed in Hongkong and pformed from family owned enterprises to public enterprises.

Over the past 7 years, PEAK's domestic and foreign brand market has been continuously developing and becoming a sports brand with great international influence in China.

With the promotion of national fitness as a national strategy and other policy dividends, China's sports industry has ushered in a huge business opportunity of the trillions of future.

In July 26, 2016, under the proposal of the large shareholder Xu family, the shareholders' meeting decided to start the privatization plan and successfully withdraw from the HKEx in November 2nd of that year.

Low valuation promotes "back to Hong Kong to A"

According to the industry, PEAK chose privatization to return to A shares. On the one hand, Hong Kong shares are too low in price and almost no financing space. On the other hand, the upgrading and explosion of China's sports industry will undoubtedly give the domestic sports brand more imagination.

PEAK Chairman Xu Jing Nan told reporters that the privatization was favored by many capital giants and investors.

On the list of PEAK sports shareholders, there are capital giants such as Doug capital joint Everbright capital, Qianhai parent fund, Minsheng Bank, Guoxin Securities, Guangfa Securities, CITIC construction investment and other capital giants.

At present, the vast majority of sports brands in China, including Anta, PEAK, XTEP, 31st degree, Lining and China's trend, are all getting together with Hong Kong stocks.

As the first and the only sports brand of A shares, these two or three years have been thrived. Hu pun has set up a fund to invest in sports and launched a series of acquisitions in the sports industry. It has been on the way to the extension of the sports industry chain, all of which benefited from the high yield of its A share listing.

In 2015, before the privatization of PEAK, for example, the annual income of the 2015 annual report was 1 billion 969 million, an increase of 2.57% over the previous year, a net profit of 332 million, an increase of 6.33% over the same period last year, and 2016 of the median operating income 1 billion 18 million, an increase of 0.11% over the same period last year, with net profit 157 million, down by 9.92% over the same period.

PEAK's turnover in 2015 was 3 billion 107 million, an increase of 9.36%, a net profit of 392 million yuan, an increase of 22.33% over the same period last year, and a 1 billion 298 million profit in 2016, with a net profit of 169 million, a decrease of 3.73% over the same period last year.

In 2015, the business income of noble bird was lower than that of PEAK, but its dynamic P / E was 43.39 times, PEAK reported 1.92 yuan before the suspension, and the P / E ratio was only 9.2 times.

When the listing price was released in 2014, it was 10.6 yuan, up to 69.37 yuan in 2015, and its total market value was over twenty billion.

People in the investment field expect that PEAK sports, which will return to A shares in the future, will increase by 3 times in valuation if the valuation is horizontal.

The return of A shares to PEAK sports will reach 20 billion yuan.

Overseas stocks return to A shares fever

Giants return to A shares full of enthusiasm.

In addition to PEAK, Wanda Commercial and other Hong Kong listed enterprises, including 360, unfamiliar street, Dangdang, automobile home and other overseas listed Chinese enterprises have planned to return to A shares in recent two years.

In 2016, PEAK shares were delisted, and Wanda business also successfully pulled out of Hongkong.

Hengda Real Estate in recent two years has also increased the series of actions to buy back shares, or plans to return to A shares in Ming or dark plans, as well as Fuli real estate, Biguiyuan, and agile housing companies.

In the United States listed stocks, Qihoo 360 in 2016 after delisting from the United States, in November last year successfully backdoor jiangjiajie return to A shares.

The resumption of trading in January 2nd this year, opened 15 minutes, that is, the closure of trading, again in January 3rd, closed at 55.63 yuan, Zhou Hongyi's value soared to 88 billion yuan, surpassing Liu Qiangdong and approaching Robin Li.

Qihoo 360's backdoor return to A shares is soaring. Undoubtedly, it has touched the hearts of the stock market.

Xu Jingnan said: "the completion of privatization is only the first step. PEAK will embark on the journey to return to A shares, and the road to upgrading from a single sports equipment brand to a sports industry group is just beginning."

Analysts believe that with the rapid development of China's economy, more and more domestic investors have gradually recognized the business mode and development mode of Chinese Internet companies and innovative enterprises, and the state's support policies for emerging industries listed on the domestic market have gradually increased, which has led a large number of enterprises to embark on a road back to China.

In addition, the valuation difference is also considered to be another reason for overseas listed companies to return to A shares.

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