Thursday 28 Mar 2024
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Xingquan Int Sports Hldg Ltd (-ve)

Shares of China-based Xingquan (Fundamental: 1.95/3, Valuation: 3/3), which have been trending higher since mid-December 2014, saw renewed investor interest after it posted stronger 3QFYJune2015 earnings results last Wednesday. The stock gained 6.6% to close at 64.5 sen yesterday. 

For 9MFY2015, net profit grew an outsized 51.2% y-o-y to CNY232.24 million on the back of a 14.2% increase in revenue to CNY1.03 billion, mainly due to increased sales of shoe soles, higher average selling price of apparel and an unrealised forex gain of CNY40.11 million. 

The company manufactures and sells shoe soles to shoe manufacturers. It also manufactures and sells shoes, apparels and accessories under its own brand, ‘GERTOP’. 

For FY2014, net profit slumped 32.7% to CNY176.64 million, while revenue fell 24.7% to CNY1.23 billion, mainly attributed to lower sales of shoes and apparel. 

The stock trades at a trailing 12-month P/E of 1.55 times and 0.19 times book.

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This article first appeared in The Edge Financial Daily, on June 3, 2015.

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