Hongkong delisting from PEAK to return to A shares but how long this road

completed privatization, exit Hong Kong stock market 3 months later, PEAK officially announced plans to return to A shares.

in this round of privatization, Doug capital, China Everbright fund, Qianhai sports master fund, Huatai financial, Minsheng Bank, Guoxin Securities, GF Securities, CITIC, entered the new PEAK sports shareholders, the investment amounting to 2 billion 500 million.

 

In this "

to return to A shares" conference, PEAK chairman Xu Jingnan reiterated the physical reasons for delisting: "Hongkong’s capital market is very difficult for us to create an international brand manufacturing efficiency", also revealed that the two major directions: the return of the extension of the industrial chain and enhance the product line, not to be involved in sports events to build, operation IP sports training, sports, sports information and big data, social and other fields.

and many of the stocks, the poor performance of the stock price, the valuation is too low to be unable to get rid of the plight of PEAK in the Hong Kong stock market. This is not only related to the characteristics of the market in Hongkong, but also closely linked with its operating conditions.

senior partner Roland Begg Ren Guoqiang once said in an interview in Hongkong listed companies without the strength of the fund’s largest holdings of shares, is very difficult to maintain at a high level, while the international stock investors China sports brand bias. This is why PEAK, XTEP, 361 and other brands collective price slump.

compared to the Hong Kong stock market, sports stocks in the A-share market is clearly more popular A. The first landing A shares market local brands guirenniao current PE is 58 times, while the performance of local brands in the best and biggest revenue in Anta, Hong Kong stocks PE is only 25 times.

, however, is not simply "undervalued" – most of the company’s share price is a true manifestation of its performance. In PEAK, for example, the first day of listing in 2009 fell below the issue price of HK $4.1, then rose in 2010 was the highest point of HK $6.96. Also in 2010, PEAK full year net profit of 822 million, up by 30%, reaching the peak performance.

but since 2011, PEAK net profit for three consecutive years of decline, which fell by 60% in 2012. Although since 2014 began to rebound, but the performance is still less than half of the peak. The recent 2016 interim results show that in the first half of net profit of $169 million, down by 3.73%. These ups and downs are also reflected in the stock price, five years before the delisting, PEAK shares are much lower than the issue price, hovering between $1 – $3.

local sports brand began to emerge from the last century in 90s, according to statistics, the size of a brand in the influence of stagger peak of more than 4000. With Lining, Anta, XTEP, 361°, PEAK is equal to Hong Kong before and after the listing in 2008, the formation of the first camp of local brands. They are in the Nike, Adidas firmly occupy a high degree of market, food

Leave a Reply

Your email address will not be published. Required fields are marked *