Peak privatization returns A shares

The reason Peak chose privatization to return A shares at this time is because the stock price of Hong Kong stocks is too low and there is little room for it. On the other hand, the upgrading and outbreak of the Chinese sports industry will undoubtedly give the domestic sports brands greater imagination. . According to Lazy Bear Sports, Peak has already started to build industrial groups long ago. It is only a matter of time before returning to A shares.

Currently, the vast majority of sports brands in China, including Anta, Xtep, 361 Degrees, Li Ning and China Trends, are all in Hong Kong stocks. The only exception is the elegant bird. As the first and now the only sports brand of A-shares, the elegant birds have enjoyed great success in the past two years. They and the Tigers have established sports sports and investment projects and quietly completed the transformation. The company is extending to the sports industry chain.

In terms of valuation, at the time of this draft, the dynamic price-to-earnings PE of A-share listed company is 43.39 times, while Peak Sports listed on Hong Kong stock is only 9.8 times. If you compare horizontally according to the valuation, in the future, Peak Sports, which returns to the A-shares, will increase its valuation by a factor of three. At present, the total market value of Peak Sports is HK$4.99 billion. According to the above valuation, the return to A-share listed Peak Sports may reach 20 billion ***.

The return of A-share stocks to A-shares is a popular concept at present. Over the past year or so, Chinese companies listed overseas, such as 360, Momo, Dangdang, and Autohome, have sought to return. Peak returns are now the product of a big era. However, unlike the privatization of US-listed companies such as 360 and Momo, from the perspective of the capital market, the privatization of listed companies in Hong Kong stocks is much more complicated than the privatization of the same US-listed companies. In the process of privatization of US stocks, major shareholders can participate in the voting; and in order to further protect the interests of small and medium-sized investors in Hong Kong law, stipulating that the delisting of Hong Kong stocks requires minority shareholders to vote.

Lazy Bear Sports noted that Peak Sports released two company announcements early on May 23. One is about the suspension announcement of listed companies, and the other is quite interesting. It is about “changing the chief financial officer, company secretary, authorized representative and agent who receives legal procedure documents and notices in Hong Kong”. Lazy Bear Sports notes that this bulletin has:

1. Mr. Cai Jiahao has resigned as the company's chief financial officer, company secretary, authorized representative and agent representing the company to receive legal process documents and notices in Hong Kong;

2. Mr. Xu Zhihua, the company’s chief executive officer and executive director, will perform the position of Chief Financial Officer of the Chief Financial Officer.

Lazy bear sports analysis believes that this personnel change is directly related to the privatization of Peak Sport Hong Kong shares.

Comparing with the trend of the domestic sports industry, the sports concept has not been alarmed by the performance of the Hong Kong stock market, and some domestic sports concept stocks and even pan-sports concept stocks have been extremely enthusiastic for related companies.

At present, the return of Chinese stocks generally uses the method of backdoor A shares. However, it is still not clear which way Peake will return. However, from the corporate structure of Peak Sports, splitting the VIE structure overseas and returning to A-share backdoor listing is the only path to its economic choice.

It is worth mentioning that Wanda had only 15 months of successful listing in Hong Kong and Wanda Commercial announced privatization. In the CCTV “Dialogue” broadcast on the evening of May 22nd, Wang Jianlin, chairman of Wanda Group, stated that Wanda’s business valuation is too low, and it’s irresponsible for shareholders and investors to be privatized.