Bosideng Intends To Buy No More Than 10% Issued Shares, Long-Term Development Confidence Is Highlighted.

Related media was informed that Bosideng announced in the evening of December 20th that the company's board of directors formally exercised the exercise of share repurchase authorization to buy shares in the open market. The number of shares repurchased will not exceed 10% of the total issued shares in August 26, 2019.

Influenced by this news, Bosideng's share price rose nearly 10% in December 23rd, indicating that the market has a positive and optimistic attitude towards Bosideng's repurchase shares.

It is worth noting that by the end of December 20th, Boston's share price was HK $2.92, which rose by more than 4 times compared with the HK $0.54 at the beginning of 2018, and its current market value is nearly 35 billion Hong Kong dollars. Maybe some investors will have doubts. Why did Bosideng choose to buy back the stock after the company's stock price rose? How to solve the huge amount of money needed to buy the stock?

First of all, from the perspective of capital side, according to Bosideng announcement, the company's repurchase shares will provide funds for repurchase shares from the cash reserve available from operating activities.

According to Boston Financial Report 2015/16 fiscal year to 2017/18 fiscal year, the net cash flow generated by the company's business activities reached 1 billion 109 million yuan, 1 billion 33 million yuan and 1 billion 509 million yuan respectively, and the business activities had strong "blood transfusion" ability.

Boston 2019/20 interim report of fiscal year shows that the company's cash and cash equivalents reached 1 billion 390 million yuan (the same below), and the company's debt ratio (interest bearing loans / total interests) remained at a low level of 23.4%. It shows that the company has ample funds to support share repurchase.

As for Bosideng, the "bottom gas" of buying shares after the stock price has risen several times has been stated in the announcement issued on the 20 day: "the company is full of confidence in its own business prospects and prospects".

The media also noted that Bosideng business income increased from 6 billion 817 million yuan to 10 billion 383 million yuan in the fiscal year 2015/16 to 2017/18 fiscal year, and the compound growth rate reached 23.4% during that period.

In the first half of fiscal year 2019/20, Bosideng achieved a revenue of 4 billion 436 million yuan, an increase of 28.8% over the same period last year, and a net profit of 343 million yuan, an increase of 36.4% over the same period last year. The company's brand down clothing business achieved 42.9% growth in the report, earning 2 billion 533 million yuan, accounting for 57.1% of the total revenue.

According to relevant media analysis, the formation of long-term and rapid growth trend of Bosideng performance stems from the company's adherence to the development strategy of "focusing on the main channel and focusing on the main brand". Under this strategy, Bosideng continued to exert its strength. From last year's stunning debut at New York fashion week and the launch of the three designers' joint series, this year, once again embarked on the international stage, landed in Milan fashion week, salute the spirit of Dengfeng to launch the global top mounted "Dengfeng series", and recently launched a series of series with the French hall master gurteye.

Product upgrading year by year, so that Bosideng brand has laid a good brand foundation in the minds of consumers. Bosideng brand health tracking report conducted by Ipsos, a market research firm, shows that the first mention rate of Bosideng brand is up to 66%, the net recommended value (NPS) is as high as 49%, the brand reputation is as high as 8.69, and the recognition rate among Chinese consumers is as high as 97%.

Good word-of-mouth will inevitably turn into sales volume. According to Bosideng official data, sales of double eleven full channel in 2019 exceeded 1 billion yuan, of which Tmall flagship store realized sales of 650 million yuan, an increase of 58% compared with the same period last year, ranking the first place in all bags and footwear brands second and the top of domestic shoes and clothing brands. This year, sales of double two Bosideng full antenna exceeded 440 million yuan, and Tmall flagship store single store sales won the first Chinese clothing brand.

The so-called "Spring River heating duck prophet", people who know most about the company naturally know the investment value of the company best. According to the relevant media, the significance of this buyback is mainly to emphasize that the growth of the company's performance is still highly flexible, and that the stock price of the company has a high margin of safety, and that the real capital injection into the stock market is the best Christmas gift to investors.