How Does Baosheng International Compare With BELLE?

According to the world clothing and shoe net, because the privatization proposal was not passed at the special shareholders meeting held last Monday, last Tuesday, China's second largest shareholder

Retailer Baosheng international and holding company Yuyuan Industrial shares respectively fell 31% and 10.54% respectively, and the trend of the trade collapsed.

According to Baosheng International's announcement last Monday, the number of shareholders voting for privatization was 71, accounting for 77.0375% of the total vote, reaching a minimum of 75%, but the conditions for 10% against the vote were not met, and 12 votes against 22.9625%.

Because the privatization is not accepted, the 9904.TW and the concerted action of the offeror will not be allowed to make an offer to Baosheng international again within 12 months.

In addition, Yu Yuan Industry intends to sell Baosheng international holding rights after the special interest rate of HK $4.1 has also been invalidation, Yuyuan industry holds Baosheng international 62.41% stake.

Baosheng international is Adidas

, Nike

And so on, the main agent in the Chinese market, the group also uses many brand business YYsports Sheng Dao chain business, and is developing the Kicks Lounge single item footwear business, while the controlling shareholder Yuyuan industry is the world's largest footwear manufacturer. In 2017, it shipped 324 million 600 thousand pairs of shoes.

Tuesday's closing, Baosheng international news hk $1.38, not only smoothed out the previous 2.03 Hong Kong dollar privatization offer after more than 30% increase, against the privatization of the offer before the closing date of the closing price of HK $1.54, a discount of more than 10%.

In today's report, Goldman Sachs pointed out that Pou Sheng International (Holdings) Ltd. (3813.HK) Baosheng International (Holdings) Limited has a current price equivalent to 16 times to 14 times P/E in the 2018/19 year, and is equivalent to the global counterparts. Whether privatization will be short term will make the company's share price under pressure, and the company's management has so far failed to provide performance guidelines, and online and offline investment is still necessary.

The bank expects Baosheng international sales to grow by 13% in the current fiscal year, and the operating profit margin will be improved to 4.3% by 20 basis points, and will give Baosheng International HK $1.9 mark and "neutral" rating.

Goldman Sachs also gave its controlling shareholder Yue Yuen Industrial (Holdings) Ltd. (0551.HK) Yuyuan Industrial (Group) LIMITED HK $38 target price and "buy" rating, which stems from the dividend yield of the yuyuyuan industry up to 5%, even though the market is worried about the potential impact of Baosheng international privatization on the company.

In the January announcement, Baosheng international explained the reasons for privatization. At present, the sporting goods industry in the company is experiencing unprecedented changes and challenges, especially the rise of online shopping and intensified market competition.

In order to enable Baosheng international to explore and adapt to a challenging environment, it is expected that a large amount of investment will be needed to implement the above measures and to strengthen the business of Baosheng, which may involve the risk of implementation or the performance of Baosheng in the short term.

Baosheng international is currently the second largest sporting goods agent and retailer in China. In 2017, its revenue was RMB 18 billion 833 million 300 thousand yuan (hereinafter referred to as "Yuan"), an increase of 16% over the previous year. The net profit plunged 29.7% to 394 million 300 thousand yuan in the interim, and operating profit also fell 16.6%, from 924 million 200 thousand yuan in 2016 to 770 million 400 thousand yuan.

It is worth noting that Baosheng International's largest competitor in China, BELLE international, successfully completed privatization in 2017. BELLE International's last financial report shows that the company's revenue in the 2017 fiscal year ended February 2017 was RMB 22 billion 746 million 500 thousand yuan, BELLE international was also China's largest sporting goods agent and retailer, and the third ANTA Sports Products Limited (2020.HK) Anta Sports Products Limited earned 16 billion 692 million 500 thousand yuan in 2017, an annual increase of 25.1%.

At the beginning of the month, BELLE international, after privatization, allegedly broke 50 billion of its retail revenue.

The president of the footwear business group and President of the new business division said that BELLE international footwear business has stopped falling, while sports business profits and sales are projected to exceed 20%.

The BELLE is the main shareholder of MBO in the process of privatization.

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