BELLE Will Split Sports Business Listing Value Or Less Than Anta 1/6

Rehearsing rumors of the split sports business listing of China's largest fashion retailer and Belle International Holdings Ltd. Belle International Holdings Ltd, the largest shoe company, reopened on Tuesday, according to Reuters quoted sources as saying that the company has hired Bank of America merrillLynch (BAML) to help BELLE port to its IPO.

As early as 2017, BELLE Holdings Hillhouse Capital high allocating capital and CDH Investments CDH investment for MBO, fashion industry research and consulting investment organization No Agency analyst Tang Xiaotang has predicted that BELLE holdings is bound to split the listing.

Last year, Bloomberg quoted sources as saying that BELLE holdings will be the first to divest its sports business this year and will be listed again in Hongkong.

Therefore, BELLE holdings is once again listed in Hong Kong. In the form of IPO, there is no accident at all.

At the beginning of 2017, BELLE holdings received an offer of HK $53 billion 100 million worth of HK $45 billion 311 million 400 thousand, or about $6 billion 800 million, from the executive directors of the management and the private placement fund of high and medium level private equity funds.

After the paction was approved, the high leverage capital held 56.81% of BELLE holdings, while CDH investment held 12.06%, holding 31.13% of its management shares in the group and the group, while BELLE holdings delisted from the Hongkong stock exchange in mid 2018.

According to sources, BELLE holding sports business valued at about HK $200-250 billion, and at the end of last year, the company had invited investment bankers to publicize its IPO.

However, this valuation is far from the market value of China's leading ANTA Sports Products Limited (2020.HK) Anta Sports Products Limited, which exceeds HK $130 billion.

Earlier, when Tang Xiaotang commented on BELLE holdings privatization deal, he said that splitting sports business listings would be the first step in BELLE holdings.

However, he had predicted that private equity shareholders would be more patient and might put the paction in A shares.

However, after the turbulent 2018, the stock market of China and Hong Kong split up, and the valuation of A shares tended to be reasonable. In accordance with the existing A share rules, the company's public offering of shares requires at least three natural years to run. BELLE holdings is obviously not in line with the listing rules, and investors need to reclaim funds and the sports industry is still on the rise. This may be the main reason why BELLE holdings is eager to go public.

Tang Xiao Tang is not optimistic about the possible split up listing, he said that although BELLE holding sports business can be ranked first among domestic capital by revenue, but the brand control power which is subject to the agency business is weak, and the low margin of agency system and the expansion and large-scale development mode, it is difficult for the pure sports business to get a high valuation in the Hongkong market.

Local retail watch (micro signal: retailinsider) and no fashion Chinese network (micro signal: nofashioncn) data show that as of the end of March 2017 fiscal year 2017, BELLE holdings revenue recorded an increase of 2.2%, from 40 billion 790 million 200 thousand yuan to 41 billion 706 million 500 thousand yuan, of which sports and clothing business revenue 15.4% increase offset the decline in the 10% of the footwear brand revenue.

In the 2017 fiscal year, group sports and apparel business earned 22 billion 746 million 500 thousand yuan in revenue for the first time, exceeding the footwear business 18 billion 960 million yuan, accounting for 54.5% and 45.5% respectively, while in the 2016 fiscal year, group footwear business accounted for 51.7%.

Although in the BELLE holding group, with the healthy trend of the Chinese market in recent years, the sports business revenue has exceeded the traditional shoes, but in the Chinese sports market, BELLE holding sports business does not have any unilateral leading edge.

The president of BELLE footwear division and President of the new business division said that the group sports business profit and sales in the 2018 fiscal year are expected to exceed 20% growth.

On the basis of 20%, the sports apparel business earned about 27 billion 300 million yuan last year, and the profit is estimated to be about 1 billion 300 million yuan based on NoAgency.

Research firm Euromonitor Europe reported that BELLE holding sports business accounted for 6.7% of China's market share, and it is expected that the market will increase from 40 billion US dollars in 2018 to 58 billion US dollars in 2023.

BELLE holding sports business income is not as good as Nike Inc. (NYSE:NKE) Nike group, ranking the second largest in the Chinese market, more than Adidas AG (ADS.DE) Adidas group, Nike and Adidas in 2017, the revenue of the Greater China market is about $4 billion 200 million (end May 2017 fiscal year) and 2 billion 800 million euros (up to the end of fiscal year 2017). From the perspective of the whole industry, it is inferior to PouSheng International (Holdings) Ltd. (3813.HK) Baosheng International Holdings Limited, which has the world's first sports shoes manufacturer (Adidas) (Yu) Yuyuan Industrial (Group) Co., Ltd. as the controlling shareholder; from the profitability aspect, the BELLE holding business is not as good as the local sports giant (Anta Sports Products Limited), and the Fujian company makes 32.9% to 4 billion 102 million 900 thousand yuan in 2018. From the perspective of income, 2017

The Nike group, which has announced its annual performance in fiscal year 2018, has gained 5 billion 134 million dollars in the Greater China market as at the end of May 2018. It is far ahead of the group. Adidas group's 2018 revenue in China is expected to be 3 billion 500 million euros or 26 billion 800 million yuan.

In the past year, Anta sports's acquisition of Amer Sports (AMEAS.HE), a high-end sporting goods giant in Finland, has become the biggest topic in the Chinese sports industry. The deal is expected to be announced this week.

In the case of Anta's biggest local brand in China, other brands began to split up. Lining, XTEP international and 31st degree were left behind and caught and killed.

In the middle of 2, in the middle of March, the profit police posted a profit in 2018. XTEP's profit in 2018 was expected to rise in 1. The net profit in 2018 is expected to soar.

Under the leadership of Tmall, Lining participated in New York fashion week for two consecutive years. With the slogan of "chao chao" and "China Lining" as the slogan, he still attacked the "export to domestic sale" of China's brand marketing means. Because of the rising proportion of clothing, its future may be fought with 603877.SS, a clothing company headquartered in Ningbo.

Ningbo is also a strong partner of Tmall. It has been selected for two consecutive years with Lining to participate in New York fashion week China day activities.

In recent years, the share prices of several major sports brands have also risen with the good market share between China and Hong Kong.

On Tuesday, Anta sports continued its record high of HK $49.50, while Li Ning Co shares also hit a new high in July 2011.