KUALA LUMPUR: China-based sports shoes and apparel maker, Xidelang Holdings Ltd, jumped 27% and was among yesterday’s most active stocks even as the normally quiet counter saw 2% of its share base done off-market at a discount to prevailing market prices.
A total of nine million shares changed hands in six direct trades off-market yesterday for RM2.78 million or an average of 30.9 sen apiece. Five million shares changed hands for 30 sen apiece in the morning session while four million shares were done at 32 sen apiece in the afternoon session, stock market data showed.
On the open market, Xidelang traded between 31 sen and 39 sen before closing at 37.5 sen, up 8 sen or 27.1% for the day, its highest in six months. Some 42 million shares or 9.6% of its 440 million-share base changed hands.
There were no new filings for substantial shareholding changes at press time.
Ding Peng Peng, its co-founder, managing director and CEO, owned 54.55% of the company as at May 3, 2011.
At yesterday’s close of 37.5 sen, there is a 14.7% upside potential to the 43 sen apiece that Mercury Securities said the stock was worth in a note dated Nov 25, 2011.
Notably, Xidelang’s unaudited net asset per share stood at 72.72 sen as at Sept 30, 2011, up from 56.14 sen as at Sept 30, 2010.
Xidelang, which recently got shareholders’ mandate to buy back its shares from the open market, sold its shares for 63 sen apiece at its IPO on Nov 11, 2009.
The low valuations accorded by the market had sparked rumours that its major shareholder may take the company private, one source said. This could not be immediately confirmed at press time.
In any case, Xidelang looks poised to report higher year-on-year earnings for FY ended Dec 31, 2011, and the figures are slated for release by end-February 2012.
For the nine months ended Sept 30, 2011, net profit rose 7.1% year-on-year to RM63.2 million, even as revenue grew 5.2% to RM357.3 million over the same period. For the full year of FY10, net profit was RM77.9 million on the back of RM465.1 million sales.
Mercury Securities expects net profit to come in at RM87.4 million for FY11 and RM95.5 million for FY12. “We expect the group’s dividend payout ratio to be within the 10% to 15% range of annual net earnings for FY11 and FY12,” it said on Nov 25, forecasting a dividend per share of 3.3 sen for both years. That implies an 8.8% yield at yesterday’s 37.5 sen-close.
For FY10, the company paid dividend per share of 2.5 sen.
This article appeared in The Edge Financial Daily, January 4, 2012.
A total of nine million shares changed hands in six direct trades off-market yesterday for RM2.78 million or an average of 30.9 sen apiece. Five million shares changed hands for 30 sen apiece in the morning session while four million shares were done at 32 sen apiece in the afternoon session, stock market data showed.
On the open market, Xidelang traded between 31 sen and 39 sen before closing at 37.5 sen, up 8 sen or 27.1% for the day, its highest in six months. Some 42 million shares or 9.6% of its 440 million-share base changed hands.
There were no new filings for substantial shareholding changes at press time.
Ding Peng Peng, its co-founder, managing director and CEO, owned 54.55% of the company as at May 3, 2011.
At yesterday’s close of 37.5 sen, there is a 14.7% upside potential to the 43 sen apiece that Mercury Securities said the stock was worth in a note dated Nov 25, 2011.
Notably, Xidelang’s unaudited net asset per share stood at 72.72 sen as at Sept 30, 2011, up from 56.14 sen as at Sept 30, 2010.
Xidelang, which recently got shareholders’ mandate to buy back its shares from the open market, sold its shares for 63 sen apiece at its IPO on Nov 11, 2009.
The low valuations accorded by the market had sparked rumours that its major shareholder may take the company private, one source said. This could not be immediately confirmed at press time.
In any case, Xidelang looks poised to report higher year-on-year earnings for FY ended Dec 31, 2011, and the figures are slated for release by end-February 2012.
For the nine months ended Sept 30, 2011, net profit rose 7.1% year-on-year to RM63.2 million, even as revenue grew 5.2% to RM357.3 million over the same period. For the full year of FY10, net profit was RM77.9 million on the back of RM465.1 million sales.
Mercury Securities expects net profit to come in at RM87.4 million for FY11 and RM95.5 million for FY12. “We expect the group’s dividend payout ratio to be within the 10% to 15% range of annual net earnings for FY11 and FY12,” it said on Nov 25, forecasting a dividend per share of 3.3 sen for both years. That implies an 8.8% yield at yesterday’s 37.5 sen-close.
For FY10, the company paid dividend per share of 2.5 sen.
This article appeared in The Edge Financial Daily, January 4, 2012.
