FILA Holdings (081660 KS ) A bump in the road
Textiles/Apparel 4Q19 preliminary earnings review: OP disappoints Company Report FILA Holdings announced its 4Q19 results after market close on February 14 th , posting February 14, 2020 consolidated revenue of W789.5bn and operating profit of W84.5bn. Operating profit was 11.7% below the recently lowered consensus. While the company only released preliminary numbers and did not provide a regional breakdown of earnings, we believe the lackluster results were mainly due to FILA USA (9.6% of consolidated net profit). (Maintain) Buy We estimate FILA USA’s dollar-based revenue plunged 27% YoY in 4Q19, weighed down by: 1) the overall weakness of the low/mid-end US sportswear market; 2) an Target Price (12M, W) 70,000 unfavorable comparison; and 3) retailers’ inventory adjustments and order cancellations. We also believe FILA USA’s 4Q19 OP margin was lower than our original Share Price (02/14/20, W) 43,500 estimate of 4.7%. As retailers’ inventory adjustments come to an end in 1Q20, the negative impact on Expected Return 61% revenue will likely subside. Still, given the sharp revenue growth of the Disruptor and other FILA models that lasted through 3Q19, we forecast FILA USA’ s 2020 revenue to contract around 20% YoY. OP (19F, Wbn) 477 Consensus OP (19F, Wbn) 484 Decreasing US exposure
EPS Growth (19F, %) 88.4 In January, we slashed our 2020 revenue and operating profit forecasts for FILA USA by Market EPS Growth (19F, %) -34.9 32.3% and 65.1%, respectively, in light of the steeper-than-expected revenue decline. P/E (19F, x) 12.0 However, becaus e FILA USA accounts for only 9.6% of overall consolidated net profit, Market P/E (19F, x) 15.7 our downward revisions to FILA Holdings’ consolidated revenue and net profit KOSPI 2,243.59 forecasts were limited to just 6.3% and 6.1%, respectively.
Market Cap (Wbn) 2,659 Maintain Buy and TP of W70,000 Shares Outstanding (mn) 61 Despite FILA Hol dings’ decreasing US exposure, FILA USA’s disappointing growth is Free Float (%) 79.3 likely to increase the stock’s volatility in the near term, given that US revenue growth Foreign Ownership (%) 41.1 has been a key catalyst for share prices since 2H19. Beta (12M) 0.42 52-Week Low 43,100 Still, we recommend taking advantage of any sha re price correction as a buying 52-Week High 85,800 opportunity, considering: 1) the strong growth prospects of China’s sportswear market; and 2) the company’s rapidly improving balance sheet and shareholder return policy. (%) 1M 6M 12M We maintain our Buy rating and target price of W70,000 on FILA Holdings. Absolute -9.8 -27.6 -10.4 Relative -10.0 -37.5 -11.1
220 FILA Korea KOSPI
170
120
70 2.19 6.19 10.19 2.20
Mirae Asset Daewoo Co., Ltd.
[ Global Con sumer ] FY (Dec.) 12/16 12/17 12/18 12/19F 12/20F 12/21F Revenue (Wbn) 967 2,530 2,955 3,408 3,410 3,551 Woochang Chung +822 -3774 -6753 OP (Wbn) 12 217 357 477 467 497 [email protected] OP Margin (%) 1.2 8.6 12.1 14.0 13.7 14.0
NP (Wbn) 323 62 144 270 264 288 EPS (W) 5,684 1,030 2,349 4,425 4,328 4,716 ROE (%) 48.4 7.5 10.5 16.0 13.0 12.2
P/E (x) 2.5 15.8 22.8 12.0 10.1 9.2 P/B (x) 0.9 1.2 3.3 2.6 1.8 1.6 Dividend Yield (%) 0.4 0.3 0.1 0.6 2.7 3.7 Note: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, Mirae Asset Daewoo Research estimates
February 14, 2020 FILA Holdings
Table 1. 4Q19 review (K-IFRS consolidated) (Wbn, %, %p) 4Q19 F 4Q18 1Q19 2Q19 3Q19 4Q19P YoY (%) (Mirae Asset Diff. (%) 4Q19 (Cons.) Diff. (%) Daewoo ) Revenue 761.7 834.6 959.3 867.0 789.5 3.6 747.3 5.6 791.9 (0.3) Operating profit 82.6 115.9 144.9 124.9 84.5 2.3 91.6 (7.8) 95.7 (11.7) Net profit (0.7) 70.3 68.5 80.5 N/A N/A 51.1 N/A 57.0 N/A (controlling) OP margin (%) 10.8 13.9 15.1 14.4 10.7 (0.1) 12.3 (1.6) 12.1 (1.4) Net margin (%) (0.1) 8.4 7.1 9.3 N/A N/A 6.8 N/A 7.2 N/A Source: Company data, Bloomberg, Mirae Asset Daewoo Research
Table 2. Annual earnings and forecasts (Wbn, %) 2017 2018 2019F 2020F
Revenue 2,530.3 2,954.7 3,408.2 3,409.7 FILA Korea 342.5 499.9 599.9 647.9 FILA USA 344.5 497.9 641.9 510.7 Royalties 40.8 58.4 79.4 84.1 FILA other 35.4 100.8 171.4 205.6 Acushnet 1,767.1 1,797.6 1,915.6 1,961.4 Operating profit 217.5 357.1 477.2 466.6 FILA Korea 1.4 56.5 108.0 117.9 FILA USA 10.5 38.0 44.4 25.2 Royalties 40.8 58.4 79.4 84.1 FILA other -25.9 15.8 19.7 24.7 Acushnet 190.6 188.5 211.3 214.7 Net profit (controlling) 62.4 143.6 270.4 264.5 Pretax profit from FILA China 24.6 43.0 66.0 79.1 Management consulting fees 12.1 23.3 37.2 42.8 Equity-method gains 12.5 19.8 28.8 36.4 % of total pretax profit 23.5 18.7 18.3 22.4 Chg. (YoY) Revenue 16.8 15.4 0.0
FILA Korea 46.0 20.0 8.0 FILA USA 44.5 28.9 -20.4
Royalties 43.2 35.9 5.9
FILA other 184.4 70.0 20.0 Acushnet 1.7 6.6 2.4 Operating profit 64.2 33.6 -2.2 FILA Korea N/A 91.3 9.2 FILA USA N/A 17.0 -43.3
Royalties 43.2 35.9 5.9
FILA other N/A 24.9 25.2 Acushnet -1.1 12.1 1.6 Net profit (controlling) 130.1 88.4 -2.2 OP margin (%) Total 8.6 12.1 14.0 13.7 FILA Korea 0.4 11.3 18.0 18.2 FILA USA 3.1 7.6 6.9 4.9 Royalties 100.0 100.0 100.0 100.0 FILA other -72.9 15.7 11.5 12.0 Acushnet 10.8 10.5 11.0 10.9 Source: Company data, Mirae Asset Daewoo Research
Mirae Asset Daewoo Research 2 February 14, 2020 FILA Holdings
Table 3. Our estimates vs consensus (K-IFRS consolidated) (Wbn, %, %p) Our estimates Consensus Diff. (%)
2019F 2020F 2019F 2020F 2019F 2020F Revenue 3,408 3,410 3,453 3,590 -1.3 -5.0 Operating profit 477 467 481 513 -0.8 -9.1 Net profit (controlling) 270 264 277 300 -2.5 -11.7 OP margin (%) 14.0 13.7 13.9 14.3 0.1 -0.6 Net margin (%) 7.9 7.8 8.0 8.3 -0.1 -0.6 Source: Bloomberg, Mirae Asset Daewoo Research estimates
Table 4. FILA Holdings: SOTP valuation (Wbn, %) % of Value Notes total I. Korea 1,076.9 25.1 2020F net profit 107.7
Target P/E 10.0 - 10% premium to avg. P/E of major Korean listed apparel firms
II. USA 275.1 6.4
2020F net profit 25.5
Target P/E 10.8 - 40% discount to avg. P/E of US general apparel/ sportswear companies
III. China 1,602.7 37.3
2020F net profit 59.4
Target P/E 27.0 - Avg. P/E of major Chinese sportswear companies
IV. Acushnet 1,342.0 31.2
Market cap 2,532.0
Stake 53.0
Target market cap 4,296.7 100.0
No. of shares (mn) 61.1
Target price (W) 70,000
Current price (W) 43,500
Upside (%) 61 Source: Mirae Asset Daewoo Research
Table 5. Consolidated net profit breakdown (Wbn, %) 2020F % of total
Net profit (controlling) 264.5 100.0 I. Korea 107.7 40.7 II. USA 25.5 9.6 Net profit 25.5
Stake (%) 100.0
III. China 59.4 22.4 1. Full Prospect 27.3
Equity-method gains 36.4
Tax rate (%) 25.0
2. Management fees (after-tax) 32.1
Management fee (pretax) 42.8
Tax rate (%) 25.0
IV. Acushnet 72.0 27.2 Net profit 135.8
Stake (%) 53.0 Source: Mirae Asset Daewoo Research
Mirae Asset Daewoo Research 3 February 14, 2020 FILA Holdings
Figure 1. P/E band chart I Figure 2. P/E band chart II
(x) (W"000) 22 100 18x 20 90
18 80 15x 16 +2 SD 70 12x 14 60 +1 SD 50 12 9x Avg. 10 40 8 -1 SD 30 6x 6 20 -2 SD 4 10 2 0 17 18 19 20 17 18 19 20 Source: Bloomberg, Mirae Asset Daewoo Research Source: Bloomberg, Mirae Asset Daewoo Research
Figure 3. EV/EBITDA band chart I Figure 4. EV/EBITDA band chart II
(x) (Wbn) 14 8,000
7,000 11x 12 6,000 9.8x 10 +2 SD 8.5x +1 SD 5,000 8 7.3x Avg. 4,000 6x 6 -1 SD 3,000 -2 SD 4 2,000
2 1,000 17 18 19 20 17 18 19 20 Source: Bloomberg, Mirae Asset Daewoo Research Source: Bloomberg, Mirae Asset Daewoo Research
Mirae Asset Daewoo Research 4 February 14, 2020 FILA Holdings
Company overview
FILA Holdings is a sporting goods manufacturer that sells footwear, apparel, underwear, etc. FILA, founded in Milan, Italy in 1911, was sold to FILA Holdings—an independent firm established in 1997 that owned the license to sell FILA products in Korea—in 2005 through a management buyout. In 2007, FILA Holdings acquired the global FILA brand and all of its international subsidiaries.
After acquiring the global golf equipment maker Acushnet (GOLF US/CP: US$30.67) in 2011, FILA Holdings listed the company on the NYSE in 2016.
FILA Holdings generates most of its revenue from FILA Korea (estimated net profit share in 2019: 33.1%), FILA USA (19.0%), FILA China (19.0%), and Acushnet (28.8%).
Figure 5. Company history
Source: Company materials, Mirae Asset Daewoo Research
Figure 6. Net profit breakdown
(%) Acushnet China US Korea 100
80
60
40
20
0
-20 2016 2017 2018 2019F 2020F
Source: Company data, Mirae Asset Daewoo Research
Mirae Asset Daewoo Research 5 February 14, 2020 FILA Holdings
Business structure
FILA Holdings’ business can broadly be divided into direct (Korea and the US) and indirect operations.
FILA Holdings engages in the distribution of athleisure apparel and sports footwear (retail and wholesale), and also provides products under the brand names of FILA Intimo (underwear) and FILA Kids.
As of end-2018, the company operates approximately 570 stores in Korea. FILA USA is in charge of all US operations, with footwear being the largest product category.
Indirect operations include the royalty business, Acushnet, and Full Prospect. The brand has over 40 licensees around the globe, who pay royalties based on their wholesale revenues (minimum royalties are guaranteed based on revenue projections).
Full Prospect is a joint venture between FILA Holdings (15% ownership) and Anta Sports (2020 HK/CP: HK$68.15) of China. The brand distributes premium sportswear in China and pays FILA Holdings 3% of its wholesale revenue in the form of design advisory fees (royalties).
Figure 7. Corporate governance of FILA Holdings Figure 8. Overview of royalties
Source: Company materials, Mirae Asset Daewoo Research Source: Company materials, Mirae Asset Daewoo Research
Mirae Asset Daewoo Research 6 February 14, 2020 FILA Holdings
Competitiveness analysis
When FILA entered the Korean market in the early 1990s, it was widely perceived as a young, premium brand. Twenty years later, however, the aging of its target customers and intensifying competition in the outdoor market began to weigh on the brand. For two consecutive years in 2015-16, the company’s domestic revenues sustained negative growth.
Shift from retail to wholesale-centric distribution
FILA Holdings adopted a series of strategies to overcome the crisis, including changing its target customers and renewing its brands. The company narrowed its target age group to teenagers and people in their 20s and took steps to better appeal to young customers, such as 1) hiring young celebrities as brand models and 2) adopting a more wholesale-centric distribution model, shifting from department stores to multi-brand shops such as ABC Mart and Folder.
Wholesale distribution has helped boost FILA Holdings’ cost competitiveness thanks to more efficient inventory management (with only the amount ordered by retailers being produced). The focus on wholesale has also allowed the company to better cope with the online conversion of the retail business and ever-changing consumer needs.
In-house sourcing center: Competitive costs and nimble response to changing trends
FILA’s unique production process is also noteworthy. Generally, footwear manufacturing involves: 1) planning; 2) outsourcing of sample manufacturing; 3) sample confirmation; and 4) outsourcing of manufacturing (to the sample maker).
While this process eschews the fixed-cost burden of operating production facilities/workforce, outsourcing production to the sample maker reduces a brand’s pricing power.
FILA Holdings makes samples at its own sample production facilities (in mainland China and Hong Kong) and then invites bids from multiple factories based on those samples. In this way, FILA secures more competitive prices as well as the ability to respond in a more agile manner to changing market trends.
With this innovative process, FILA Holdings has been able to reduce its footwear prices to W60-70,000 (from over W100,000) and better appeal to young consumers. (The retro trend in fashion has also helped the brand’s image with young consumers.)
Mirae Asset Daewoo Research 7 February 14, 2020 FILA Holdings
Focused customer segmentation
As one of its key marketing strategies, FILA Holdings engages in co-branding, or brand collaborations. Its frequent co-branding work has even earned the nickname “FILAboration.” The collaboration with Melona (a popular melon-flavored ice cream brand) was particularly popular among students. Recently, the company extended its reach to the game industry (PlayerUnknown's Battlegrounds and Woowakgood, a popular Korean game streamer). In the US, it partnered with World Wrestling Entertainment (WWE).
Figure 10. Customers lined up ou tside Foot Locker to buy FILA Figure 9. Brand collaborations x WWE products
Source: Company materials, Mirae Asset Daewoo Research Source: Press materials, Mirae Asset Daewoo Research
Mirae Asset Daewoo Research 8 February 14, 2020 FILA Holdings
FILA Holdings (081660 KS/Buy/TP: W70,000)
Comprehensive Income Statement (Summarized) Statement of Financial Condition (Summarized) (Wbn) 12/18 12/19F 12/20F 12/21F (Wbn) 12/18 12/19F 12/20F 12/21F Revenue 2,955 3,408 3,410 3,551 Current Assets 1,338 1,690 1,759 1,737 Cost of Sales 1,487 1,695 1,689 1,755 Cash and Cash Equivalents 149 300 334 221 Gross Profit 1,468 1,713 1,721 1,796 AR & Other Receivables 474 553 571 609 SG&A Expenses 1,110 1,236 1,254 1,299 Inventories 632 729 747 795 Operating Profit (Adj) 357 477 467 497 Other Current Assets 83 108 107 112 Operating Profit 357 477 467 497 Non-Current Assets 1,966 2,004 2,041 2,076 Non-Operating Profit -20 10 10 22 Investments in Associates 44 0 0 0 Net Financial Income -52 -45 -31 -18 Property, Plant and Equipment 311 352 393 432 Net Gain from Inv in Associates 20 20 20 20 Intangible Assets 1,492 1,468 1,445 1,421 Pretax Profit 337 487 477 519 Total Assets 3,304 3,695 3,800 3,813 Income Tax 127 122 119 130 Current Liabilities 672 774 840 827 Profit from Continuing Operations 210 365 357 390 AP & Other Payables 249 288 288 300 Profit from Discontinued Operations 0 0 0 0 Short-Term Financial Liabilities 176 200 300 300 Net Profit 210 365 357 390 Other Current Liabilities 247 286 252 227 Controlling Interests 144 270 264 288 Non-Current Liabilities 1,126 1,052 752 460 Non-Controlling Interests 67 95 93 101 Long-Term Financial Liabilities 810 714 414 114 Total Comprehensive Profit 280 365 357 390 Other Non-Current Liabilities 316 338 338 346 Controlling Interests 192 270 264 288 Total Liabilities 1,798 1,826 1,592 1,287 Non-Controlling Interests 88 95 93 101 Controlling Interests 991 1,230 1,453 1,663 EBITDA 423 544 540 576 Capital Stock 61 61 61 61 FCF (Free Cash Flow) 190 224 252 258 Capital Surplus 118 118 118 118 EBITDA Margin (%) 14.3 16.0 15.8 16.2 Retained Earnings 822 1,185 1,524 1,842 Operating Profit Margin (%) 12.1 14.0 13.7 14.0 Non-Controlling Interests 515 639 755 863 Net Profit Margin (%) 4.9 7.9 7.7 8.1 Stockholders' Equity 1,506 1,869 2,208 2,526
Cash Flows (Summarized) Forecasts/Valuations (Summarized) (Wbn) 12/18 12/19F 12/20F 12/21F 12/18 12/19F 12/20F 12/21F Cash Flows from Op Activities 275 309 342 353 P/E (x) 22.8 12.0 10.1 9.2 Net Profit 210 365 357 390 P/CF (x) 9.9 6.1 5.0 4.6 Non-Cash Income and Expense 120 169 173 190 P/B (x) 3.3 2.6 1.8 1.6 Depreciation 42 43 49 56 EV/EBITDA (x) 10.9 9.2 8.5 8.1 Amortization 24 24 24 24 EPS (W) 2,349 4,425 4,328 4,716 Others 54 102 100 110 CFPS (W) 5,397 8,747 8,677 9,478 Chg in Working Capital -107 -104 -69 -96 BPS (W) 16,226 20,129 23,782 27,208 Chg in AR & Other Receivables -91 -78 -18 -38 DPS (W) 50 299 1,170 1,593 Chg in Inventories -43 -97 -17 -49 Payout ratio (%) 1.5 5.0 20.0 25.0 Chg in AP & Other Payables 61 34 0 11 Dividend Yield (%) 0.1 0.6 2.7 3.7 Income Tax Paid -29 -122 -119 -130 Revenue Growth (%) 16.8 15.3 0.1 4.1 Cash Flows from Inv Activities -25 -85 -90 -95 EBITDA Growth (%) 48.9 28.6 -0.7 6.7 Chg in PP&E -18 -85 -90 -95 Operating Profit Growth (%) 64.5 33.6 -2.1 6.4 Chg in Intangible Assets -2 0 0 0 EPS Growth (%) 128.1 88.4 -2.2 9.0 Chg in Financial Assets 20 0 0 0 Accounts Receivable Turnover (x) 7.1 6.8 6.3 6.2 Others -25 0 0 0 Inventory Turnover (x) 4.9 5.0 4.6 4.6 Cash Flows from Fin Activities -214 -77 -218 -371 Accounts Payable Turnover (x) 7.8 7.1 6.6 6.7 Chg in Financial Liabilities -168 -74 -200 -300 ROA (%) 6.6 10.4 9.5 10.2 Chg in Equity 0 0 0 0 ROE (%) 10.5 16.0 13.0 12.2 Dividends Paid -24 -3 -18 -71 ROIC (%) 9.0 13.8 12.9 13.2 Others -22 0 0 0 Liability to Equity Ratio (%) 119.3 97.7 72.1 51.0 Increase (Decrease) in Cash 41 147 34 -114 Current Ratio (%) 199.0 218.3 209.3 209.9 Beginning Balance 108 153 300 334 Net Debt to Equity Ratio (%) 54.2 61.6 52.0 45.4 Ending Balance 149 300 334 221 Interest Coverage Ratio (x) 6.6 9.8 13.3 23.2 Source: Company data, Mirae Asset Daewoo Research estimates
Mirae Asset Daewoo Research 9 February 14, 2020 FILA Holdings
APPENDIX 1
Important Disclosures & Disclaimers 2-Year Rating and Target Price History
Company (Code) Date Rating Target Price (W) FILA Korea FILA Korea (081660) 01/09/2020 Buy 70,000 100,000 10/04/2019 Buy 77,200 80,000 12/03/2018 No Coverage 06/11/2018 Buy 42,000 60,000 04/30/2018 Buy 32,000 40,000
20,000
0 Feb 18 Feb 19 Feb 20
Stock Ratings Industry Ratings Buy : Relative performance of 20% or greater Overweight : Fundamentals are favorable or improving Trading Buy : Relative performance of 10% or greater, but with volatility Neutral : Fundamentals are steady without any material changes Hold : Relative performance of -10% and 10% Underweight : Fundamentals are unfavorable or worsening Sell : Relative performance of -10% Ratings and Target Price History (Share price (─), Target price (▬), Not covered ( ■), Buy (▲), Trading Buy (■), Hold (●), Sell ( ◆)) * Our investment rating is a guide to the relative return of the stock versus the market over the next 12 months. * Although it is not part of the official ratings at Mirae Asset Daewoo Co., Ltd., we may call a trading opportunity in case there is a technical or short-term material development. * The target price was determined by the research analyst through valuation methods discussed in this report, in part based on the analyst’s estimate of future earnings. * The achievement of the target price may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions.
Equity Ratings Distribution & Investment Banking Services Buy Trading Buy Hold Sell Equity Ratings Distribution 84.05% 9.82% 6.13% 0.00% Investment Banking Services 76.67% 13.33% 10.00% 0.00% * Based on recommendations in the last 12-months (as of December 31, 2019)
Disclosures As of the publication date, Mirae Asset Daewoo Co., Ltd. and/or its affiliates do not have any special interest with the subject company and do not own 1% or more of the subject company's shares outstanding.
Analyst Certification The research analysts who prepared this report (the “Analysts”) are registered with the Korea Financial Investment Association and are subject to Korean securities regulations. They are neither registered as research analysts in any other jurisdiction nor subject to the laws or regulations thereof. Each Analyst responsible for the preparation of this report certifies that (i) all views expressed in this report accurately reflect the personal views of the Analyst about any and all of the issuers and securities named in this report and (ii) no part of the compensation of the Analyst was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report. Mirae Asset Daewoo Co., Ltd. (“Mirae Asset Daewoo”) policy prohibits its Analysts and members of their households from owning securities of any company in the Analyst’s area of coverage, and the Analysts do not serve as an officer, director or advisory board member of the subject companies. Except as otherwise specified herein, the Analysts have not received any compensation or any other benefits from the subject companies in the past 12 months and have not been promised the same in connection with this report. Like all employees of Mirae Asset Daewoo, the Analysts receive compensation that is determined by overall firm profitability, which includes revenues from, among other business units, the institutional equities, investment banking, proprietary trading and private client division. At the time of publication of this report, the Analysts do not know or have reason to know of any actual, material conflict of interest of the Analyst or Mirae Asset Daewoo except as otherwise stated herein.
Disclaimers This report was prepared by Mirae Asset Daewoo, a broker-dealer registered in the Republic of Korea and a member of the Korea Exchange. Information and opinions contained herein have been compiled in good faith and from sources believed to be reliable, but such information has not been independently verified and Mirae Asset Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information and opinions contained herein or of any translation into English from the Korean language. In case of an English translation of a report prepared in the Korean language, the original Korean language report may have been made available to investors in advance of this report. The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common practices, laws and accounting principles and no person whose receipt or use of this report would violate any laws or regulations or subject Mirae Asset Daewoo or any of its affiliates to registration or licensing requirements in any jurisdiction shall receive or make any use hereof. This report is for general information purposes only and it is not and shall not be construed as an offer or a solicitation of an offer to effect transactions in any securities or other financial instruments. The report does not constitute investment advice to any person and such person shall not be treated as a client of Mirae Asset Daewoo by virtue of receiving this report. This report does not take into account the particular investment objectives, financial
Mirae Asset Daewoo Research 10 February 14, 2020 FILA Holdings
situations, or needs of individual clients. The report is not to be relied upon in substitution for the exercise of independent judgment. Information and opinions contained herein are as of the date hereof and are subject to change without notice. The price and value of the investments referred to in this report and the income from them may depreciate or appreciate, and investors may incur losses on investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur. Mirae Asset Daewoo, its affiliates and their directors, officers, employees and agents do not accept any liability for any loss arising out of the use hereof. Mirae Asset Daewoo may have issued other reports that are inconsistent with, and reach different conclusions from, the opinions presented in this report. The reports may reflect different assumptions, views and analytical methods of the analysts who prepared them. Mirae Asset Daewoo may make investment decisions that are inconsistent with the opinions and views expressed in this research report. Mirae Asset Daewoo, its affiliates and their directors, officers, employees and agents may have long or short positions in any of the subject securities at any time and may make a purchase or sale, or offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principals or agents. Mirae Asset Daewoo and its affiliates may have had, or may be expecting to enter into, business relationships with the subject companies to provide investment banking, market-making or other financial services as are permitted under applicable laws and regulations. No part of this document may be copied or reproduced in any manner or form or redistributed or published, in whole or in part, without the prior written consent of Mirae Asset Daewoo.
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Mirae Asset Daewoo Research 11 February 14, 2020 FILA Holdings
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Mirae Asset Daewoo Co., Ltd. (Seoul) Mirae Asset Securities (HK) Ltd. Mirae Asset Securities (UK) Ltd. Global Equity Sales Team Suites 1109-1114, 11th Floor 41st Floor, Tower 42 Mirae Asset Center 1 Building Two International Finance Centre 25 Old Broad Street, 26 Eulji-ro 5-gil, Jung-gu, Seoul 04539 8 Finance Street, Central London EC2N 1HQ Korea Hong Kong United Kingdom China Tel: 82-2-3774-2124 Tel: 852-2845-6332 Tel: 44-20-7982-8000
Mirae Asset Securities (USA) Inc. Mirae Asset Wealth Management (USA) Inc. Mirae Asset Wealth Management (Brazil) CCTVM 810 Seventh Avenue, 37th Floor 555 S. Flower Street, Suite 4410, Rua Funchal, 418, 18th Floor, E-Tower Building Vila New York, NY 10019 Los Angeles, California 90071 Olimpia USA USA Sao Paulo - SP 04551-060 Brasil Tel: 1-212-407-1000 Tel: 1-213-262-3807 Tel: 55-11-2789-2100
PT. Mirae Asset Sekuritas Indonesia Mirae Asset Securities (Singapore) Pte. Ltd. Mirae Asset Securities (Vietnam) LLC Equity Tower Building Lt. 50 6 Battery Road, #11-01 7F, Saigon Royal Building Sudirman Central Business District Singapore 049909 91 Pasteur St. Jl. Jend. Sudirman, Kav. 52 -53 Jakarta Selatan Republic of Singapore District 1, Ben Nghe Ward, Ho Chi Minh City 12190 Vietnam Indonesia Tel: 62-21-515-3281 Tel: 65-6671-9845 Tel: 84-8-3911-0633 (ext.110) Mirae Asset Securities Mongolia UTsK LLC Mirae Asset Investment Advisory (Beijing) Co., Ltd Beijing Representative Office #406, Blue Sky Tower, Peace Avenue 17 2401B, 24th Floor, East Tower, Twin Towers 2401A, 24th Floor, East Tower, Twin Towers 1 Khoroo, Sukhbaatar District B12 Jianguomenwai Avenue, Chaoyang District B12 Jianguomenwai Avenue, Chaoyang District Ulaanbaatar 14240 Beijing 100022 Beijing 100022 Mongolia China China
Tel: 976-7011-0806 Tel: 86-10-6567-9699 Tel: 86-10-6567-9699 (ext. 3300) Shanghai Representative Office Ho Chi Minh Representative Office 38T31, 38F, Shanghai World Financial Center 7F, Saigon Royal Building 100 Century Avenue, Pudong New Area Shanghai 91 Pasteur St. 200120 District 1, Ben Nghe Ward, Ho Chi Minh City China Vietnam
Tel: 86-21-5013-6392 Tel: 84-8-3910-7715
Mirae Asset Daewoo Research 12