KUALA LUMPUR (Nov 20): Shares of XingQuan International Sports Holdings Ltd rose as much as 23% today, after posting a double-digit growth in its first financial quarter ended Sept 30, 2014 (1QFY15) results yesterday.

At 2.54 pm, the counter was up 6 sen or 16.22% at 43 sen, with some 3.97 million shares done.

For 1QFY15, XingQuan’s net profit rose 19.6% to RM33.56 million or 11 sen per share, from RM28.08 million or 10 sen per share a year ago. 

Revenue came in 24.4% higher at RM171.97 million compared with RM138.29 million in 1QFY14, which the group attributed to increase in sales volume of shoes, shoe soles, apparels and accessories, as well as an increase in average selling price (ASP). 

In a filing with Bursa Malaysia yesterday, XingQuan said the ASP of apparels, which increased from RMB177.8 per piece to RMB185.6 per piece in 1QFY15, was due to the “successful brand upgrade to GERTOP which is in the outdoor casual wear segment compared with the previous outdoor sports wear”. 

In 1QFY15, selling and distribution expenses grew to RM20.11 million from 14.24 million a year ago, mainly due to higher expenses in relation to renovation subsidies for the sales outlets, display shelf for the sales outlets and expansion of sales network expenses, XingQuan noted.

On prospects, XingQuan said it was aware that the global economic uncertainties may impact the spending pattern of the Chinese consumers which may impact its business, and will continue to be wary of the changes in the economic conditions.

“Nevertheless, our board of directors believes that the group’s prospects for the financial year ending June 30, 2015 should remain positive,” it said.