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By Pehon | June 21, 2007
China Hong Xing recently had their stock split 5 for 1. Which means if i had bought 10 lots at $2.56, I would have 50 lots at $0.512 each.
And on the 7th May 2007, China Hong Xing released an impressive Q1 2007 results. Turnover grew 62.9% and Net Profit grew 161.9% and EPS grew from 7.52 to 17.74.
“China Hong Xing’s quarterly EPS growth definitely meets my criteria for a growth stock. A very strong growth stock to be exact.”
China Hong Xing’s aggressive expansion plan has been churning out impressive results quarterly.
China Hong Xing has recently opened their first flagship store in Beijing, and has plan for more, in anticipation of the upcoming Beijing Olympics. With the olympics coming up, and the increasing wealth of the Chinese, more will be spent on recreational sports. That is where China Hong Xing steps in.
Over the last 3 months (4Q06 to 1Q07), China Hong Xing has opened 100 flagship stores. China Hong Xing has set a target of 1 store to be opened a day, and they are hence on target to achieving it.
Despite the aggressive expansion, China Hong Xing has been able to keep a healthy asset:liabilities ratio., in fact, in improving ratio. Asset vs Liabilities was 2.5 vs 2.3 in Q4 06.
“Improving Asset:Liabilities ratio indicates sustainable and controlled growth”
In addition, China Hong Xing has saw a successful diversification of products with a 325% increase in sports accessories sale and a 138% increase in Apparel sales. To top it off, China Hong Xing has been increasingly active in marketing themselves, with sponsorship deals with several sports events and teams, including the North Korea Olympics team.
“China Hong Xing is introducing more products that yield larger margins”
China Hong Xing has been executing its lead up to the Olympics extremely well, and there is no indications that performance is going to cool off.
Maintain BUY, pending target.
Topics: ChinaHongXing |
Comments
China Hong Xing’s aggressive expansion plan has been churning out impressive results quarterly.
June 24th, 2007 at 11:57 am
Ur picks are the greatest… Thanks a lot for sharing … For the past few months, I really misss you update. Thks again for coming back ..
June 24th, 2007 at 1:47 pm
You’re welcome my friend =) its good to be back