Hosa International (2200)

Anybody knows the brand?

fundamentally looks solid from the annual reports

what does it do for business?

indoor sportswear

especially swimwear

"Corporate Profile" copied from the company report :

We own and operate HosaTM, the largest indoor sportswear brand in terms of 2010 ex-factory sales in China. We design and produce a wide range of mid-to-high end sportswear products, including swimwear, fitness wear, sports underwear and accessories, which we sell under our well known HosaTM, brand. We believe that our leading market position and strong brand name in China, our industry know-how and our extensive and efficiently managed sales and distribution network effectively differentiate us from multinational and domestic competitors.
In addition to continuing our strong presence in first-tier cities, we have extended our sales coverage to China’s second- and third-tier cities, and we are poised to further penetrate and capture these growing markets in their early development stage.

We promote our HosaTM, brand as a symbol for active, fashionable and healthy lifestyles. Our reputation in China as a high-quality and fashionable indoor sportswear brand has been strengthened over the years by numerous events and recognitions. Our HosaTM, brand has been recognized as one of China’s 500 Most Valuable Brands for three consecutive years since 2008. In 2008, our HosaTM, brand was recognized as an exemplary brand in the PRC swimwear industry and we were chosen to be the exclusive provider of swimwear products at the National Aquatics Centre (Water Cube), the site of aquatic events during the 2008 Olympics.

last Autumn, Hosa made a share placement 54 mil shares at $2.85.

Hosa shares have fallen to the $2 level and last week company has started a buy-back of 978,000 shares.

(24-03-2014, 09:23 PM)soros Wrote: last Autumn, Hosa made a share placement 54 mil shares at $2.85.

Hosa shares have fallen to the $2 level and last week company has started a buy-back of 978,000 shares.

You seems to like 财技 stocks with pattern liao liao?

I don't understand your meaning. Can you explain in plain english ?

(25-03-2014, 05:55 AM)soros Wrote: I don't understand your meaning. Can you explain in plain english ?

I mean you seems interested in stocks with the substantial shareholders who are perceived to be using 'financial engineering'. In this case, doing rights issue then buying back shares.

财技 - 'financial engineering' in a negative sense. Usually benefit the major shareholders more than minority shareholders.

Hope I explained it clearly ..hahah...

They did placement, when I asked the CFO replied there's institutional investor coming in.
but looking at balance sheet and further cash raising, i asked him if they r planning for doing takeovers or massive capex plan

if i remember correctly he only states next 3 years' capex plan which looks normal to me, with no concrete plan with the huge cash on balance

exited my position at the time

Took a look at Hosa International yesterday and i was quite curious how it achieves higher margins(GM: 58% OM:43% NPM:37%) as compared to similiar peers in the same industry like Anta, Xtep International, Peak Sport, China Dongxiang, 361 Degrees.

Although i understand that Hosa is in the higher end of the swimwear/fitness wear/sports underwear market, but it still sounds too good to be true. Did anyone pose this question to the management?