DOCSLIB.ORG

Research Report (19.02.2013)

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Research Report (19.02.2013) Pou Sheng International (3813 HK) Rating Maintain Neutral Privatization undone but life still goes on Target price HK$1.19 From HK$1.45 Current Price HK$1.39 Upside: -14.4% Privatization proposal disapproved, no surprise on FY18E guidance Company Update PS announced on Apr 9 that its parent’s (Pou Chen) plan to take the company private had been canceled as 10.8% of the votes held by all the Disinterested Scheme Shareholders voted against the proposal. Under the relevant restrictions 13 April 2018 of the Takeovers Code relating to the making of subsequent offers, Pou Chen, Yue Yuen (551.HK) or any other related party in the privatization proposal cannot Hayman Chiu propose another deal within the next 12 months. PS share price tumbled as [email protected] much as 37.5% after trading resumed on Apr 10. (852) 2235 7677 Management held a call yesterday to clarify the above issue and provide update/guidance on revenue (target low-teens growth Yoy), GM (~FY17 due to Trading Data inventory provision continues), OPM (3.5%-4.0%) which gave us no surpeise, 52-Week Range (HK$) 2.03/1.05 however, the current market consensus for FY18E OPM is higher than PS guidance (average at 4.4%), we expect a new round of earnings downgrade 3 Mth Avg Daily Vol (m) 23.3 cycle would occur again and poses pressure on share price. Meanwhile, PS No of Shares (m) 5,341.0 Market Cap (HK$m) 7,424.0 target ~300 net store openings in FY18E (vs.PS guided 600-800 net openings during FY16 result call in Mar 2018). Though PS would still benefit from both Major Shareholders (%) Yue Yuen (62.41%) Nike and Adidas continued expansion in China, emerging brands is still Auditors Deloitte undergoing de-stocking this year, we believe the net sore openings is still quite Result Due 1Q18: May 2018 challenging task for PS. Company description Transformation still possesses execution risks, current competitive landscape and investors’ lack of confidence remains an overhang Established in 1989 and listed in June 2008, Pou Sheng (PS) is one of the leading sportswear Pou Sheng continue to explore and invest heavily in various new initiatives such distributors in China with ~25% market share. In as i) expanding omni-channel capabilities; ii) planning organized addition to Nike and Adidas, the company adopts promotional activities; iii) enhancing store offering and iv) providing multi-brand strategy and distributes Puma, sports-related content and services. We believe these initiatives may benefit Converse, Under Armour and PONY products etc. Pou Sheng in the long run, however would still involve execution risks that would pose negative impact on Pou Sheng’s near term operation. In addition the As of December 2017, Pou Sheng’s retail network investors’ confidence has not been recovered since the outbreak of the comprises of 8,778 stores, in which ~62% are accounting treatment issue in Jan 17, hence still remains an overhang on Pou directly operated stores. Sheng’s valuation. PCG Bros still ramping up, expect loss narrows in FY18E Price Chart Management mentioned during the call that PCG Bros posted RMB50mn loss in FY17. As the business is still ramping up and recruitment of experienced staff is still required, management still expect the business to be loss-making in the near term (expect loss narrows to ~RMB26mn) Cut FY18E/19E EPS, unattractive valuation on near term fundamentals; Maintain Neutral, investors to stay aside We cut Pou Sheng’s FY18E/19E EPS by 19.5%/10.1% respectively and hence Sources: Bloomberg, CIRL expect a stagnant EPS growth in FY16-19E. Pou Sheng is trading at FY18E 14.4x P/E (~6.5% discount to leading peers) which we believe is unattractive on the grounds of near term fundamentals. We lowered Pou Sheng’s TP from HK$1.45 to HK$1.19 (20% discount to international peers, implying a largely unchanged FY18E 12.3x target PE (vs. 12.2x in our last update in Feb) and reiterate Pou Sheng’s rating at Neutral. We advise investors to stay aside. Page 1 / 5 Exhibit 1 :We cut Pou Sheng’s FY18E/19E EPS forecasts and introduce FY20E estimates Exhibit(USD Mn) 1: FY18 (old) FY18 (new) Diff FY19 (old) FY19 (new) Diff FY20E Yoy PorkRevenue 2,754 3,052 10.8% 3,000 3,411 13.7% 3,833 12.4% products 1,068 11.1% 1,200 14.3% 1,348 12.4% soldGP in 961 1,050 supermark etGPM counters 34.9% 35.0% 10bps 35.0% 35.2% 20bps 35.2% flat Net Profit 79 64 -19.1% 95 85 -10.5% 118 38.9% EPS 0.015 0.012 -19.5% 0.018 0.016 -10.1% 0.022 38.9% Source: CIRL estimates Exhibit 2:Pou Sheng’s 4Q17 SSSG and GM improved Exhibit16.0 1: 38.0 36.3 36.3 14.0 14.0 36.0 35.8 Pork 36.2 35.6 34.9 34.5 12.0 12.3 34.0 33.4 34.7 33.2 33.6 products10.0 10.0 32.0 31.1 9.0 8.6 30.530.8 30.3 30.9 8.0 8.0 8.0 30.3 29.8 sold in 7.5 30.0 29.6 29.5 29.7 29.7 28.9 29.4 29.1 29.0 6.0 6.0 5.9 5.6 28.0 28.3 supermark5.0 5.0 27.4 4.0 26.0 3.0 2.0 et counters 1.9 1.5 24.0 0.0 (1.0) 0.4 (1.0) 22.0 (2.0) 20.0 1Q13 2Q13 3Q13 1Q14 3Q14 4Q14 1Q15 2Q15 4Q15 1Q16 2Q16 3Q16 1Q17 3Q17 4Q17 2Q14 3Q15 4Q16 2Q17 (2.0) 4Q13 (4.0) 2Q11 4Q11 2Q12 4Q12 5Q12 2Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 2Q16 4Q16 2Q17 4Q17 1Q11 3Q11 1Q12 3Q12 4Q13 2Q14 4Q14 2Q15 4Q15 3Q16 1Q17 3Q17 Pou Sheng's SSSG (Yoy%, Year ended 31 Dec) Pou Sheng's GPM (%) Source: Company data, CIRL Exhibit 3: Nike’s Greater China sales picked up last quarter while Adidas growth momentum continues Exhibit 1: 35.0 32.0 30.0 30.0 Pork 30.0 30.0 26.0 28.0 28.0 products 25.0 25.0 21.0 20.0 20.0 sold in 19.0 16.0 15.0 13.0 13.0 15.0 supermark 13.0 10.0 11.0 9.0 11.0 11.0 et counters 8.0 6.0 5.0 6.0 5.0 0.0 3Q12 4Q12 1Q13 4Q13 1Q14 2Q14 1Q15 2Q15 3Q15 2Q16 3Q16 4Q16 3Q17 4Q17 1Q12 2Q12 2Q13 3Q13 3Q14 4Q14 4Q15 1Q16 1Q17 2Q17 Adidas (Greater China) Overall Source: Company data, CIRL Page 2 / 5 Exhibit 4: Increased franchised stores net openings drove Pou Sheng’s total store counts slightly increased in 3Q17 QoQ PouExhibit Sheng's store 1: count FY12 FY13 FY14 FY15 FY16 FY17 *1Q17 **2Q17 **3Q17 **4Q17 DirectPork operation 3,659 3,665 4,263 4,943 5,560 5,465 5,545.0 5,464.0 5,464 5,465 Franchised 2,276 2,263 2,689 2,893 3,199 3,313 3,298.0 3,036.0 3,152 3,313 Totalproducts 5,935 5,928 6,952 7,836 8,759 8,778 8,843 8,500 8,616 8,778 Direct stores' growth 0.2% 16.3% 16.0% 12.5% -1.7% -0.3% -1.5% 0.0% 0.0% Franchisedsold in stores' growh -0.6% 18.8% 7.6% 10.6% 3.6% 3.1% -7.9% 3.8% 5.1% Totalsupermark growth -0.1% 17.3% 12.7% 11.8% 0.2% 1.0% -3.9% 1.4% 1.9% Direct stores (%) 61.7% 61.8% 61.3% 63.1% 63.5% 62.3% 62.7% 64.3% 63.4% 62.3% Franchisedet counters stores (%) 38.3% 38.2% 38.7% 36.9% 36.5% 37.7% 37.3% 35.7% 36.6% 37.7% Source: Company data, CIRL (*1Q17 growth data vs. FY16, **2Q-4Q17 growth rate are on QoQ basis) Exhibit 5: Peers’ profitability comparison Exhibit 1: bloomberg ROE (%) ROA (%) Net Gearing (%) FY17 code FY17 FY17 FY17 GM (%) OM (%) NM (%) Pork Sportswear distributors ABC-MARTproducts INC 2670 JP 13.4 11.5 (52.5) 54% 18% 12% 11% CALERES INC CAL US 14.2 6.2 41.0 41% 4% 3% 43% FOOTsold LOCKER in INC FL US 24.8 17.1 (33.9) 34% 13% 9% 106% DSW INC-CL A DSW US 12.7 8.4 (22.3) 28% 7% 5% 39% GENESCOsupermark INC GCO US 9.3 5.9 3.8 49% 5% 3% 53% FINISH LINE-A FINL US 9.1 5.7 (20.1) 30% 3% -1% 30% DICK'Set counters SPORTING DKS US 17.3 8.4 (8.3) 30% 6% 4% 26% JD SPORTS FASHIO JD/ LN 39.8 18.9 (36.9) 49% 10% 8% -3% Average 20.1 N/A N/A 39% 8% 6% 44% POU SHENG INTL 3813 HK 22.0 23.4 (64.8) 35% 4% 2% -3% Source: Bloomberg , CIRL Exhibit 6: Financial Summary Income statement Cash flow YearExhibit to Dec (US$ 1: Mn) FY16A FY17A FY18E FY19E FY20E Year to Dec (US$ Mn) FY16A FY17A FY18E FY19E FY20E Revenue 2,444 2,775 3,052 3,411 3,833 Pre-tax profit 125 97 102 133 184 GrossPork profit (reported) 868 972 1,068 1,200 1,348 Taxes paid (37) (35) (42) (45) (51) EBITDA 172 162 172 212 271 Depreciation & amortization 38 50 54 59 66 Depreciationproducts 38 50 54 59 66 Associates & Others 59 67 73 78 89 EBIT 135 112 119 152 205 CFO bef.
Load more

Recommended publications
  • Research Report (19.02.2013)
    Pou Sheng International (3813 HK) Rating Maintain BUY Penetrate into sports marketing regime Target price HK$2.81 From HK$3.10 Current price HK$2.20 Upside.27.9% 3Q16 NP slight miss; GPM still near record high on healthy retail 23 December 2016 discounts and channel inventory; Higher SG&A on new store openings Hayman Chiu Pou Sheng’s (PS) 3Q16 net profit accounted for ~68% of our FY16E [email protected] estimates (vs. 70% in FY15) on higher than expected SG&A ratio, while (852) 2235 7677 GPM soared 300bps Yoy to 36.2% (vs. 36.3% in 2Q16), which is higher than our FY16E estimate (35% GPM). The GPM hike was mainly driven by healthy channel inventory (~4-5 months) and hence a better retail discount (~low 20% Trading Data off in 3Q16 vs. mid 20’s in FY15). However, 9M16 SG&A ratio rose 182bps to 52-Week Range (HK$) 2.84/1.11 ~30.2% of sales in 9M16, which is higher than our FY16E estimates at 29.4%, 3 Mth Avg Daily Vol (m) 5.90 driven by faster than expected new store openings in 3Q16 (net adds: 233 in No of Shares (m) 5,337.62 3Q16 vs 386 in 1H16). By end-Sept, Pou Sheng’s net openings reached 619 Market Cap (HK$m) 11,742.7 (low-end target of 600-800 in FY16E). We expect PS’s SG&A ratio to be slightly >30% sales in FY17E/18E (vs. avg at 29.4% in FY13-FY15) driven by Major Shareholders (%) Yue Yuen (61.27%) international brands’ expansion plan in China.
    [Show full text]
  • POU SHENG INTERNATIONAL (HOLDINGS) LIMITED Our Mission 2
    2008 年報 ANNUAL REPORT 2008 PO US HEN G INTERNAT I ONA L (HOLDINGS ) LIMITE D 寶勝國際（控股）有限公司 ANNUAL REPORT 2008 年報 POUSHENG INTERNATIONAL (HOLDINGS) LIMITED POUSHENG INTERNATIONAL (HOLDINGS) LIMITED 寶勝國際（控股）有限公司 寶勝國際（控股）有限公司 ( 於百慕達註冊成立之有限公司) (Incorporated in Bermuda with limited liability) (股份代號：3813) (Stock Code：3813) POU SHENG INTERNATIONAL (HOLDINGS) LIMITED Our Mission 2 Corporate Overview 4 Corporate Information 5 Chairman’s Statement 6 Management Discussion and Analysis 10 Biographical Details of Directors and Senior Management 18 CONTENTS Directors’ Report 23 Corporate Governance Report 35 Independent Auditor’s Report 43 Consolidated Income Statement 45 Consolidated Balance Sheet 46 Consolidated Statement of Changes in Equity 48 Consolidated Cash Flow Statement 49 Notes to the Consolidated Financial Statements 51 Financial Summary 110 2 OUR MISSION POU SHENG INTERNATIONAL (HOLDINGS) LIMITED 3 OUR MISSION As the largest sports footwear/sportswear retailer in the PRC, Pou Sheng, cooperating with several leading international brands, will continue to provide all customers with suitable and satisfactory sports and lifestyle-based products. The Group, led by a team of well-experienced management and riding on its advanced retail management and IT capabilities, will further enhance its existing retail channels in order to maintain its leading edges in scale in the Greater China Region. Besides, the Group will continuously improve its high-standard customer services and further develop the channel brand of “勝道╱YY SPORTS”, by which the “勝道╱YY
    [Show full text]
  • Annual Report 2012
    Annual2012 Report POU SHENG INTERNATIONAL (HOLDINGS) LIMITED 寶勝國際（控股）有限公司 (Incorporated in Bermuda with limited liability) (Stock Code：3813) Short Term Transforming from an acceptable player to a competitive winner OUR MISSION Long Term To be the STRONGEST and most INNOVATIVE multi- channel national retailer in sports inspired / lifestyle industry – the customers’ No. 1 choice and the brand’s best partner in China CONTENTS Corporate Overview 2 Corporate Information 5 Chairman’s Statement 6 Management Discussion and Analysis 10 Biographical Details of Directors and Senior Management 19 Directors’ Report 23 Corporate Governance Report 36 Independent Auditor’s Report 50 Consolidated Income Statement 52 Consolidated Statement of Comprehensive Income 53 Consolidated Statement of Financial Position 54 Consolidated Statement of Changes in Equity 56 Consolidated Statement of Cash Flows 58 Notes to the Consolidated Financial Statements 61 Financial Summary 160 CORPORATE OVERVIEW www.pousheng.com CORPORATE OVERVIEW THE GROUP’S FINANCIAL HIGHLIGHTS For the fifteen For the Percentage months ended year ended increase December 31, September 30, (decrease) 2012 2011 Revenue (US$’000) 2,182,450 1,589,802 37.3% Operating profit (US$’000) 2,708 82,078 (96.7)% (Loss) profit attributable to owners of the Company (US$’000) (69,151) 53,670 – Basic (loss) earnings per share (US cents) (1.56) 1.25 – KEY SHAREHOLDER VALUE INDICES Revenue Operating Profit (Loss) US$ million % change US$ million 2,400 200% 100 2,182.5 2,100 175% 80.4 82.1 80 1,800 1,589.8 150%
    [Show full text]
  • Pou Sheng International (3813 HK) Pou Sheng Inter National
    Hong Kong Consumer Discretionary 14 March 2016 Pou Sheng International (3813 HK) Pou Sheng Inter national Target price: HKD2.00 Share price (11 Mar): HKD1.70 | Up/downside: +17.6% Initiation: standing on the shoulders of giants Adrian Chan, CFA (852) 2848 4427 Sector’s structural growth likely to drive sustainable earnings growth [email protected] Valuations look undemanding at 13.8x 2016E PER Anson Chan, CFA (852) 2532 4350 Initiating with a Buy (1) rating and 12-month target price of HKD2.0 [email protected] Investment case: Bridging the gap between two of the largest global Share price performance sportswear brands and one of the largest sportswear markets in the world, Pou (HKD) (%) Sheng looks well positioned to benefit from the fitness craze and “athleisure” 1.9 345 market in China as one of Nike and Adidas’s largest retail distributors in the 1.5 271 country. With the company having recovered to positive net profit territory in 1.2 198 0.8 124 2014 (after 2 years in the red), we expect robust demand for Nike/Adidas 0.4 50 products and operating leverage to drive robust earnings growth for Pou Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Sheng, leading to a 1.2pp rise in operating margin to 5.6% in 2017E, from Pou Sheng (LHS) Relative to HSI (RHS) 4.5% in 9M15, and a 30% EPS CAGR for 2015-17E. 12-month range 0.48-1.86 We like Pou Sheng for its status as a pure play on China sportswear, while Market cap (USDbn) 1.17 peer Belle International (1880 HK, Not rated) operates in the arguably more 3m avg daily turnover (USDm) 2.00 Shares outstanding (m) 5,368 challenging ladies footwear segment in China.
    [Show full text]
  • Pou Sheng International (Holdings) Limited
    POUSHENG INTERNATIONAL (HOLDINGS) LIMITED POUSHENG INTERNATIONAL (HOLDINGS) LIMITED 寶勝國際（控股）有限公司 寶勝國際（控股）有限公司 ( 於百慕達註冊成立之有限公司) (Incorporated in Bermuda with limited liability) ： ( 股份代號：3813 ) (Stock Code 3813) 中 期 報 告 2009 INTERIM REPORT 2009 CONTENTS Group Financial Highlights 1 Interim Results Condensed Consolidated Income Statement 2 Condensed Consolidated Balance Sheet 3 Condensed Consolidated Statement of Changes in Equity 4 Condensed Consolidated Cash Flow Statement 5 Notes to The Condensed Consolidated Financial Statements 6 Management Discussion and Analysis 19 Other Information 29 1 GROUP FINANCIAL HIGHLIGHTS For the six months ended Percentage March 31, increase 2009 2008 (decrease) Revenue (US$’000) 533,895 419,627 27.2 Profit attributable to equity holders of the Company (US$’000) 4,784 34,062 (86.0) Basic earnings per share (US cents) 0.13 1.80 (92.8) Dividend per share – Interim (US cents) – – – Interim Report 2009 2 INTERIM RESULTS The directors (the “Directors”) of Pou Sheng International (Holdings) Limited (the “Company”) are pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (collectively referred to as the “Group”) for the six months ended March 31, 2009 with comparative figures for the corresponding period in 2008 as follows: CONDENSED CONSOLIDATED INCOME STATEMENT For the six months ended March 31, 2009 For the six months ended March 31, 2009 2008 (unaudited) (unaudited) NOTES US$’000 US$’000 Revenue 3 533,895 419,627 Cost of sales (358,750) (261,965) Gross profit 175,145
    [Show full text]
  • Pou Sheng International (3813 HK)
    Pou Sheng International (3813 HK) Rating BUY Maintain Target Price HKD 3.38 From HK$1.83 Undemanding valuation to ride on further recovery Current price HKD 2.01 Upside: +68.1% % Operating deleverage drove 1H20 earnings down, guidance stay put Company Update PS 1H20 result was largely in-line with the profit warning alert released in end-Jul. Both revenue and net profit attributable to shareholders slipped 15.3% 18 September 2020 Yoy/97% Yoy to US$1,667mn/US$1.7mn respectively. This was driven by i) 4.5 pts Yoy decrease in GM and came in at 29.9%, in which 2Q20 GM arrived at ~29.3% based on our calculation; ii) though SG&A ratio was slightly down Hayman Chiu 0.4pts Yoy to ~29.4% in 1H20, operating deleverage drove OPM down to [email protected] 1.7%, in which 2Q20 OPM returned to positive territory at 3.6% (vs. -0.9% in 1Q20) (852) 2235 7677 PS cash conversion cycle maintained stable at 155 days, and though PS Trading Data reduced their borrowings by ~16% and brought their net gearing down to 14.6%, cash balance reached historical high at RMB1,616mn(~US$230mn). PS 52-Week Range (HK$) 2.97/1.17 declared no final dividend for 1H20. PS net closed 306 stores in 2Q20, in which 3 Mth Avg Daily Vol (m) 3.14 No of Shares (m) 5,356.9 direction operation store took up ~93% of the total store closures. We continue to believe PS would still benefit from both Nike and Adidas continued expansion in Market Cap (HK$m) 10,767.3 Greater China.
    [Show full text]
  • Interim Report 2010 中 期 報 告 CONTENTS Group Financial Highlights 1
    PO U S HEN G INTERNAT I POU SHENG INTERNATIONAL (HOLDINGS) LIMITED ONA POU SHENG INTERNATIONAL (HOLDINGS) LIMITED L 寶勝國際（控股）有限公司 (HOLDINGS 寶勝國際（控股）有限公司 ( 於百慕達註冊成立之有限公司) (Incorporated in Bermuda with limited liability) (Stock Code：3813) ( 股份代號：3813 ) ) LIMITE D 寶勝國際（控股）有限公司 中 期 報 告 Interim Report 2010 中 期 報 告 CONTENTS Group Financial Highlights 1 Interim Results Condensed Consolidated Income Statement 2 Condensed Consolidated Statement of Comprehensive Income 3 Condensed Consolidated Statement of Financial Position 4 Condensed Consolidated Statement of Changes in Equity 5 Condensed Consolidated Statement of Cash Flows 6 Notes to The Condensed Consolidated Financial Statements 7 Management Discussion and Analysis 21 Other Information 30 Interim Report 2010 GROUP FINANCIAL HIghLIghTS For the six months Percentage ended March 31, increase 2010 2009 Revenue (US$’000) 654,182 533,895 22.5% Profit attributable to owners of the Company (US$’000) 8,828 4,784 84.5% Basic earnings per share (US cent) 0.21 0.13 61.5% Dividend per share – Interim (US cent) – – N/A 1 POU SHENG INTERNATIONAL (HOLDINGS) LIMITED INTERIM RESULTS The directors (the “Directors”) of Pou Sheng International (Holdings) Limited (the “Company”) are pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (collectively referred to as the “Group”) for the six months ended March 31, 2010 with comparative figures for the corresponding period in 2009 as follows: CONDENSED CONSOLIDATED INCOME STATEMENT For the six months ended March 31, 2010
    [Show full text]
  • Pou Sheng International (3813 HK)
    Pou Sheng International (3813 HK) Rating Maintain BUY Attracting more investors’ attention Target price HK$3. 10 From HK$2.50 Current price HK$2.51 Upside.23.5% In-line 1H16 result; GPM a surprise on lower retail discounts and 23 August 2016 healthy channel inventory Pou Sheng’s (PS) 1H16 results was in-line with our estimates with both Hayman Chiu revenue and net profit accounted for 50% and 53.5% of our FY16E estimates. [email protected] The group’s GPM soared 290bps Yoy /140bps QoQ to 36.3%, which is higher (852) 2235 7677 than our FY16E estimate (35% GPM). The GPM hike was mainly driven by healthy channel inventory (~4-5 months) and hence a better retail discount ( ~20% off in 1H16 vs. mid 20’s in FY15) and. The SG&A ratio stood at 29.7% Trading Data of sales in 1H16 (vs.29.4% in 1Q16), which was driven by new store openings 52-Week Range (HK$) 2.72/0.97 in 1H16 (net adds: 386 in 1H16). We still expect PS’s SG&A ratio to remain at 3 Mth Avg Daily Vol (m) 6.53 29-30% of sales in FY16E/17E driven by international brands’ expansion plan No of Shares (m) 5,187.67 in China. Management targets 600-800 net openings by end-2016, in which Market Cap (HK$m) 13,384.2 will be Adidas and Nike driven. Major Shareholders (%) Yue Yuen (61.27%) Auditors Deloitte Nike and Adidas products’ demand still strong; New brand Result Due 3Q16: Nov 2016 partnership continue to drive growth Company description Nike and Adidas continue to account for ~80% of Pou Sheng’s revenue, and Established in 1989 and listed in June 2008, Pou we expect both companies would continue deliver at least mid-teens growth in Sheng (PS) is one of the leading sportswear revenue in the medium term which will be driven by i) new store openings ; ii) distributors in China with ~25% market share.
    [Show full text]
  • Research Report (19.02.2013)
    Pou Sheng International (3813 HK) Rating BUY Maintain Target Price HKD 3.03 From HK$2.74 A good start in 1Q21 Current price HKD 1.83 Upside: +65.6% % 1Q21 net profit beat on higher GM and stringent cost control Result takeaway PS has kicked off well in FY21, with revenue grew 59.2% to ~US$1,128mn and net profit attributable to shareholders turnaround and arrived at US$55mn. PS 14 May 2021 revenue and net profit reached 25%/36% of our FY21E forecast. We attributed the net profit beat to better than expected GM (1Q21: 34.3% vs. CIRL estimate at 33.3% )and lower SG&A ratio (1Q21: 28.4% vs. CIRL estimate at 29.0%) , while Hayman Chiu OPM hit 7.0% mark thanks to improved channel structure, omni-channel [email protected] integration and lower retail discount (852) 2235 7677 PS cash conversion cycle further shortened to 107 days (vs. 142 days/ 156 days in 4Q20/FY19), in RMB terms, mainly driven by lower inventory turnover days at Trading Data 115 (vs. 143 days in FY20). PS total borrowings maintained at ~ RMB2,000mn in 1Q21, and net gearing ratio was at 8.6%, still significantly lower than 26.8% in 52-Week Range (HK$) 2.34/1.40 1Q20. PS net closed further 68 stores in 1Q21, in which direct operation store 3 Mth Avg Daily Vol (m) 4.57 took up all the store closures (-70 stores vs. end-2020). No of Shares (m) 5,356.9 Market Cap (HK$m) 9,803.0 Management sticked to their FY21E revenue growth and OPM guidance at Major Shareholders (%) Yue Yuen (62.41%) high-teens and 7% respectively, in which omni-channel sales would reach high Auditors Deloitte teens of total revenue.
    [Show full text]
  • Research Report (19.02.2013)
    Pou Sheng International (3813 HK) Rating Maintain Neutral Still facing headwinds Target price HK$1.02 From HK$1.68 Current price HK$1.14 Upside：-10.1% 3Q17 result disappoints again accompanied by weakened KPI ; Further guided down FY17E OPM a negative surprise 17 November 2017 Though PS’s 3Q17 sales was generally in-line with our forecasts (+10.1% yoy Hayman Chiu and 78% of our estimates vs. 75% in 9M16), net profit tumbled 38.5% Yoty to US$51.9mn (accounted for only 64% of our forecast). The short fall continued [email protected] to be dragged by lower GM (3Q17: 34.5%, down 170bps Yoy/110bps QoQ), (852) 2235 7677 and SG&A ratio remained high in 9M17 (31.2%). The lower GM was due to promotional campaigns of emerging brands (non-Nike & Adidas which Trading Data accounted for 7% of total sales). Though facing a lower base in SSSG in 3Q16 (0.4% Yoy in 3Q16), as a result of increased retail discount of 200bps QoQ to 52-Week Range (HK$) 2.42/1.08 24%, this drove 3Q17 SSSG back to 1.5% (vs. 5.6%/1.9% in 2Q17 and 1Q17), 3 Mth Avg Daily Vol (m) 6.33 hence putting GM and OPM at pressure. No of Shares (m) 5,338.5 Market Cap (HK$m) 6,085.9 Meanwhile, PS’s SG&A ratio came in at 31.2% in 9M17 vs. 30.7% of sales in Major Shareholders (%) Yue Yuen (61.27%) 1H17 (30.5%/30.8%/32.6% of sales in 1Q17-3Q17 ; 1H16 :30.0% of sales), Auditors Deloitte which is slightly above our estimates at 30-31% in FY17E.
    [Show full text]
  • 有限公司 (Incorporated in Bermuda with Limited Liability) (Stock Code: 3813)
    Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. This announcement is for information purpose only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities. POU SHENG INTERNATIONAL (HOLDINGS) LIMITED 寶勝國際（控股）有限公司 (Incorporated in Bermuda with limited liability) (Stock Code: 3813) DISCLOSEABLE TRANSACTION IN RELATION TO ACQUISITION OF ASSETS On 13 January 2012, PS Investment, the Owners and the Selling Company entered into the Acquisition Framework Agreement which sets out the terms and conditions for the sale of the Target Assets by the Selling Company and the purchase of the Target Assets by PS Investment. The Consideration for the Target Assets is RMB400,800,000 (equivalent to approximately HK$493,500,000), representing the book value of the Target Assets as at 30 September 2011, subject to adjustment, which shall be payable by PS Investment in the following manner: (a) as to 15% of the Consideration within 7 days upon execution of the Acquisition Framework Agreement, which is inclusive of the Deposit; and (b) as to the balance within 10 working days after PS Investment and the Selling Company have signed a list of deliverable assets, subject to fulfilment or waiver by PS Investment of the conditions precedent under the Acquisition Framework Agreement or acceptance of an alternative proposal and taking into account of the amount and progress of invoicing as agreed between PS Investment and the Selling Company.
    [Show full text]
  • Pou Chen Corporation
    Stock Code: 9904 POU CHEN CORPORATION 2015 ANNUAL REPORT Printed on: May 13, 2016 Annual Report is available at: http://www.pouchen.com/ http://mops.twse.com.tw/ Notice to readers This English-version annual report is a summary translation of the Chinese version and is not an official document of the shareholders’ meeting. If there is any discrepancy between the English version and Chinese version, the Chinese version shall prevail. WorldReginfo - 0ca4b06e-9194-46c6-8bb3-b648e0a17bde 1. Name, title, telephone number and e-mail address of Chang Hwa, Taiwan spokesperson and acting spokesperson: Telephone number: (04) 7695101 Name of spokesperson: Ho, Ming-Kun Title of spokesperson: Executive Senior Manager Telephone number of spokesperson: (04) 24615678 PYM Business Unit: No. 2, Fu-Kong Rd., Fu Hsin Hsian, E-mail address: [email protected] Chang Hwa, Taiwan Telephone number: (04) 7695032 Name of acting spokesperson: Chang, Yea-Fen Title of acting spokesperson: Manager 3. Name, address, e-mail address and website of the stock agency: Telephone number: (04) 24615678 Name: Grand Fortune Securities Co., Ltd. E-mail address: [email protected] Address: 6F., No. 6, Sec. 1, Zhongxiao W. Rd., Zhongzheng Dist., Taipei City 2. Address and telephone number of the head office, branch and Website: http://www.gfortune.com.tw factory: Telephone number: (02) 23711658 Address of the head office: No. 2, Fu-Kong Rd., Fu Hsin Hsian, Chang Hwa, Taiwan 4. Name of certified public accountant (“CPA”) who audited the Telephone number: (04) 7695147 (main) most recent annual financial report and name, address, website Fax: (04) 7680577 and telephone number of CPA Firm: Name of CPA: Wu, Ker-Chang and Yu, Hung-Bin Name of CPA Firm: Deloitte & Touche Head office: No.
    [Show full text]