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Fibre Chem in my watchlist for a week liao........
teeth53 ( Date: 13-Apr-2008 11:17) Posted:
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Here another one, cut and paste, hope it help also......
For more info . Pls click B-low.
http://sgshare.blogspot.com/2008/04/china-eratat-sports-fashion-ipo.html
China Eratat Sports Fashion is a new comer that would join the growing list of china sport company listed on SGX. The current listed peers are China Hongxing and China Sports.
By its own right, the company has a reputable brand and is in a fast growing industry. However, if we look at the track record, the company has achieved significant growth on FY2007 only. It is unclear to me that how the future growth rate would be.
It is also fair for us to compare the company against China Hongxing and China Sports since they all operate in the same market segment. I should focus the discussion on 3 aspects ? PE, margin and market cap.
China Hongxing: price 0.61, eps 0.035, PE 17.4x, gross margin 41.1%, market cap 1.8billion
China Sports: price 0.91, eps 0.106, PE 8.6x, gross margin 22%, market cap 306mil
Hongxing is in its own league in terms of PE, margin and market cap. ERATAT is much a smaller player compare to both, or maybe more appropriate to compare against China Sports. Even looking at forecast number, ERATAT 12.7 vs China Sport 8.6, I am hesitate to subscribe.
In the industry discussion, the prospectus cited that
Sportswear in China encompasses apparel, shoes and accessories. China?s sportswear market in 2006 is estimated to be worth between US$4.13 billion to US$5.69 billion. We estimate the Chinese sportswear market to grow by 18.6% to 23.6% between 2007 and 2010. The market size by 2010 is expected to be worth between US$8.16 billion to US$13.26 billion.
Nike, Adidas and Li-Ning are the top three players in the Chinese sportswear market. They collectively occupy between 28.0% and 37.0% of China?s fragmented sportswear market. The remainder comprises approximately 200 smaller players. These players produce sportswear as original equipment manufacturers and original brand manufacturers. There are more than 600 different brands of sportswear in the Chinese market.
This shows that the competition is very intense. I think only the strong brand would survive and thrill.
In the competition discussion, it was highlight that there are two market segments
1.Global brand market segment which brands like Nike, Adidas occupied and targeting top tier cities
2.PRC leading brand market segment which have Li-Ning, Anta, Kangwei, Hongxing Erke and XTEP which mainly targeting second to third tier city
It is interesting to evaluate the competition position and brand equity of each China sports brand and try to identify who is the rising star. Once I have time, I might do some research on this.
Cut and paste...hope all the best. Rgds...thk to 178
Ya...thk Qs for sharing ur info..
Vested, it is good to have other view to post their opinion here.
"My Remiser ask me to pickup the offer, so i'm doing just that, look like good enuff for a STAG".
Please read this..it may help U to decide 1 or don't 1 to.....
Thk Qs
http://extraordinaryprofits.blogspot.com/2008/04/china-eratat-sports-ipo.html
Thk Qshttp://extraordinaryprofits.blogspot.com/2008/04/china-eratat-sports-ipo.html