The investors of Hong Kong stock Xtep International (01368.HK) experienced a “flying” feeling the day before yesterday.
On October 9, Xtep International announced that Xtep brand spokesperson Nicholas Tse agreed to subscribe to Xtep International 500 Thousands of shares. On October 12, Xtep International’s stock price opened high and rose 17.53% to close at HK$2.95, a new high in the past six months.
On the 13th, due to the typhoon, the Hong Kong Stock Exchange canceled early trading, so there is no latest market price as of press time.
On the evening of October 12, Xtep International stated that it was not aware of the reasons for the fluctuations in stock prices and trading volume that day.
Xtep’s first spokesperson
On October 9, Xtep International issued a new share subscription announcement stating that subscribers have agreed to subscribe for 5 million subscription shares at a subscription price of HK$2.48 per share, with a total price of HK$12.4 million, equivalent to approximately RMB 10.7 million. The subscriber is Xtep brand spokesperson Nicholas Tse.
This time, Xtep International issued 5 million shares to Nicholas Tse, accounting for approximately 0.2% of the enlarged issued share capital. The price was 1.2% discount to the closing price of HK$2.51 on October 9. According to the agreement, Nicholas Tse will not sell shares within one year.
▲Picture source: Xtep official Weibo
According to the announcement, Nicholas Tse has served as the Xtep brand spokesperson for more than In 2010, the company plans to further cooperate with him to design and promote a new series of sports products related to Nicholas Tse. Proceeds will be used for the group’s product development.
In fact, this is not the first time that Nicholas Tse has become a shareholder of Xtep International. As early as 2016, Nicholas Tse subscribed for 5 million new shares at HK$4.5 per share, involving a capital of 22.5 million Hong Kong dollars, accounting for 0.23% of the number of issued shares. However, Xtep International stated on October 9 that Nicholas Tse did not hold any shares in the company before the two parties signed the agreement.
Official website information shows that in 1987, 17-year-old Ding Shuibo founded “Sanxing Sports Goods Co., Ltd.” in his hometown of Jinjiang. It started with “travel shoes” and became the “export sales brand” of the industry at that time. King of”.
In 2001, Ding Shuibo founded the “Xtep” brand, and “Sanxing” became history.
In 2002, under Ding Shuibo’s initiative, Xtep signed a contract with star Nicholas Tse, pioneering sports goods entertainment marketing.
In 2012, Xtep awarded Nicholas Tse the 10th Anniversary Special Contribution Award. Image source: Xtep official Weibo
In 2008, Xtep was listed on the main board of the Hong Kong Stock Exchange.
Nicholas Tse is the first spokesperson of Xtep. Since then, he has signed contracts with TWINS, Wilber Pan, Jolin Tsai, Gui Lunmei, Han Geng, Tiantian Brothers, Li Yifeng, Lin Zhenna, UNIQ, Du Tianhao, Wang Dongcheng, Zhao Liying, Lin Gengxin, Leroy Seven NEXT, Jing Tian and many other artists.
▲Image source: Xtep International First Half Performance Report
Xtep He once collaborated with Nicholas Tse to produce a “Fenghuo Shoe”, with sales of 1.2 million pairs of single models. Today, Fenghuo shoes have been updated for more than 21 generations, and Nicholas Tse is still the spokesperson of Xtep.
This is not Nicholas Tse’s first time investing in the stock market. In 2014, PO Chaoting, founded by Nicholas Tse, converted 60% of its shares into 350 million shares to invest in the Hong Kong listed company Han Media, and the transaction After completion, Nicholas Tse held 18.98% of Han Media’s shares and became the company’s largest shareholder.
Multi-brand strategy starts
In 2019, Xtep International’s operating income RMB 8.183 billion, a year-on-year increase of 28%; net profit was 1.234 billion yuan, a year-on-year increase of 18%.
On August 28, Xtep announced its results for the first half of 2020. In the first half of this year, Xtep’s revenue has increased overall, but its net profit performance has been unsatisfactory. Data show that Xtep’s revenue in the first half of 2020 was 3.679 billion yuan, a year-on-year increase of 10%; but operating profit was 501 million yuan, a year-on-year decrease of 30.2%; the profit attributable to common stock equity holders was 248 million yuan, a year-on-year decrease of 47%. %.
▲Xtep International’s performance in the first half of 2020 Picture source: Company performance report
As of June 30, 2020, Xtep had 6,124 brand stores in mainland China and overseas, mainly operated by its authorized distributors.
In March 2019, Xtep also won the development, marketing and distribution rights for Merrell and Saucony products in mainland China, Hong Kong and Macao; 8 In March, Xtep completed the global acquisition of two international brands, K-Swiss and Palladium, with a total price of US$260 million.
Later, Xtep established three categories based on the respective characteristics of the five major brands: professional sports (Sauconi, Mele); mass sports (Xtep main brand); fashion…��Activity (Kateway, Paladin).
It is also a mainstream sports brand. In 2009, after Anta acquired the trademark use rights and franchise rights of FILA in China, FILA went from losing more than 30 million yuan to what it is today. Contribute tens of billions of gross profits and help Anta Sports become a “ten-fold bull stock” in ten years.
In the first half of this year, Anta Group’s performance is still good. Its half-year financial report stated that in the first half of this year, Anta Group’s revenue was 14.669 billion yuan, and its revenue fell only 1% year-on-year. Many brands are growing against the trend. Among them, Fila’s revenue increased by 9.4%; other brands led by DESCENTE grew by 8.3%.
Xtep’s first half performance report shows that although many brands have contributed new revenue growth points, they are still in a state of loss, which has lowered the overall net profit and operating profit margin.
Since the beginning of this year, Xtep International’s stock price has been sluggish. Based on the highest price at the beginning of the year of HK$4.22 per share, it has fallen by 30% as of the closing on the 12th. However, the research report of Oriental Securities believes that Xtep International has two major highlights in the future. The main brand has grown steadily, laying the foundation for the company’s overall development; the four new brands have gone hand in hand, starting the company’s new journey of multi-brand and internationalization.
First Shanghai Securities also believes that Xtep International’s performance is in line with expectations, the main brand sales are gradually normalizing, and new brands are still in the process of integration, and they continue to be optimistic about the company’s multi-brand development strategy.
</p
