Just over half of the listed shares Knoch clothing week stock price suffered a “Waterloo.” On Monday, the company’s share price fell 32% no sign yesterday continued to fall 6.9%. The company announced that “no reasons noted,” but there is news that its investor base has been selling their shares in full, resulting in stock price plunged.
Market is not approved “fast fashion” concept
January 9, 2014, the board of Fujian Knoch company shares as a New Year’s first non-listed listed on the HKEx introduced, offering 150 million shares at an issue price of HK $ 2.13 to HK $ 320 million total funds raised.
In fact, this is already the third sprint IPO Knoch, and the last trip. March 6, 2011, A-share listed Kilinochchi submitted to the Commission an application for the first time. In the same year on November 9, the Commission respects to product sales to the region is limited, the company’s brand promotion expenses and research and development costs are lower than in the same industry listed companies, as well as operational risks and other reasons, not out of a listing application Knoch. After six months, Knoch resubmitted to the Commission a second A-share listing application, but then met the IPO suspended. March 19, 2013, Knoch second application for revocation, and eventually turned to HKEx listed.
Knoch prospectus, the company is a men’s casual fashion company, brand “N & Q” to provide products, target customers aged 25 to 40 years old young man. The company claims to be “one of China’s earliest adoption of market-oriented business model of fast fashion company” has a huge customer base member and customer information for product design and development, more than 80% of the total members of consumer spending. As of October 31, 2013, the company has a total of 438 retail outlets.
In the men’s overall downturn in the market, Knoch be a very good performance. Company 2010-2012 compound annual growth rate of revenue 33.3% 2012 revenue of 572 million yuan, net profit of 81.7 million yuan, the previous three years at a CAGR of 33.7%.
However, it can be seen from the 2013 Annual Report, the company profit growth has stagnated last year, achieved a turnover of 683 million yuan Kilinochchi, representing an increase of 19.3 percent year on year in 2012; But profit attributable to shareholders was 81.7 million yuan, compared with the same period last year growth of only 0.1%.
In the IPO stage, many pundits have Recommend Hong Kong companies in the major local newspaper column, called Notch is the first mainland adopted fast fashion retailer SPA (specialty retailer of private label apparel) mode, in the past three years profit CAGR of over 30%, plus other business model and successful international clothing brand ZARA similar earnings compared to other mainland brands performed well. Even the idea that it is the “Chinese version ZARA”.
However, the “fast fashion” concept and good performance did not win the capital market recognition. Knoch first day of listing, the stock market opened at HK $ 2.18, slightly higher than the offer price, but the offer price fall afternoon intraday low of HK $ 2.09, to close the offer price unchanged. Since then the company stock has been tepid.
Two days nearly forty percent of market value evaporated
Such calm was broken on Monday.
Since the market six months, Knoch’s stock has remained at about $ 2, once the period rose to about HK $ 2.4, but soon went back to around $ 2. Most of the time but also the level of tens of million of turnover, even when only a few thousand lowest shares. Until Monday, the company’s share price fell suddenly appeared cliff-style, down to 32.56%, turnover enlarged to 2143 shares. Yesterday’s share price fell by 6.9%, on volume of 1,956 shares. Just two days, the stock has fallen to $ 1.36, the market value has shrunk to HK $ 219 million, compared with the beginning of the listing has shrunk nearly forty percent.
What had happened? After the stock price plummets, Notch announced that “confirmed the Board is not aware of any reasons for such increases fell, no insider information to be disclosed.” Reporters repeatedly call the company as an investor, but has not been a response.
Hong Kong media said the Hong Kong stocks failed to break up a long time, investors rushed to sell goods leave, triggering capital flight tide. Knoch holds a Hong Kong investors on the “Daily Economic News” reporter, said there is a TV program that cornerstone investors Evergreen International (00238, HK) has been selling all hold stocks. “Do not want to sell at a loss, two days fell too much!” The investor said.
Since the implementation of the Hong Kong settlement T +2, the fact that some investors holding less than 5%, so the reporter did not change in recent days found holdings of shareholders. However, on July 9 are listed Knoch half a day, lifting shares of selling pressure does exist. “This company on January 9, 2014 listing, 6 month lock-up period has expired strategic shareholder.” Securities analyst BDA 岑智勇 on the “Daily Economic News” reporter said.
