Foreign Luxury Goods Get Together With Hongkong IPO&Nbsp; Or Because Hong Kong Stocks Are Higher Valuations.

Last May French cosmetics brand L'OCCITANE (L 'Occitane) was listed in Hongkong recently, and Italy is famous. Luxury brand Prada (Prada) announced that it plans to go public in Hongkong from the end of June this year to early July. Subsequently, the high-end footwear brand Jimmy Choo, the handbag and accessories manufacturer of the United States Coach, and the luggage manufacturer Samsonite (Samsonite), or even the new world development (13.32,0.00,0.00%, real-time quotes) chairman Zheng Yutong (column) holding the largest gold jewelry store in China, Zhou Dafu jewelry, also announced that the second half of this year will be listed in Hongkong.

Ma Ruiguang, President of YEMA management consultant, told an information times reporter: "on the one hand, more and more luxury brands choose IPO in Hongkong, which is a strong signal to potential consumers in China market. On the other hand, it also shows Hongkong capital. market The pursuit of luxury retail enterprises.

Collective efforts to list in Hong Kong

It is understood that since last May, L'OCCITANE raised $707 million in Hong Kong to expand the global expansion of new stores and product lines, and the listing of international brands in Hongkong has become faster and faster. First, Prada submitted an initial public offering application to the Hongkong stock exchange, which is scheduled to be launched in late June or early July. The total amount of the IPO is estimated to be 1 billion 500 million ~20 billion. It is reported that this is the fifth time that Prada has struck IPO in Hongkong. Coincidentally, the US luxury brand COACH also set the next round of financing destinations in Hongkong. Subsequently, the British high-end shoe brand Jimmy Choo and the American luggage manufacturer Samsonite publicly announced their listing in Hongkong, respectively, to raise $1 billion 80 million and $1 billion through initial public offerings (IPO).

Ma Ruiguang said that the intention of these big names in listing in Hongkong is obvious, that is, taking the capital market of Hongkong as a platform, making full use of the enthusiasm of Chinese consumers for famous brand products to develop the market. Compared with the listing procedures of Shanghai and Shenzhen stock markets in mainland, the examination and approval procedures for listing in Shanghai are quick and simple, so they are more popular with big names.

　　 Listing in Hong Kong is higher than other regions.

In addition to the simple examination and approval of listing in Hong Kong, the industry believes that the big deal gets together with Hongkong IPO, which reflects that Hongkong investors are willing to invest in luxury goods at a higher premium. Or investors expect the Asian market to grow faster than other parts of the world, so Hongkong's IPO demand is higher than other regions.

Take L'OCCITANE as an example, the company has been popular in the listing process, and its share price has risen by more than 30% since its listing in Hongkong last May, which is higher than that of other similar stocks listed in other markets. Its listed shares in Hongkong are expected to earn about 23 times earnings in 2011. Italy Tod, a famous shoemaking enterprise in Milan, has a 21 price earnings ratio of listed shares in Milan. L'OREAL and Louis Weedon group are very dependent on Asian business to achieve growth, and their share price earnings ratio is only about 18 times. L'OCCITANE has become a benchmark in China's consumer market nuggets. Industry observers predict that if Prada's core profits exceed 500 million euros in 2010, Prada's total market capitalization will be at least about 6000000000 Euro if it is listed in Hong Kong.

Yu Yale, an analyst with the Asia Pacific market of CLSA, said that Hongkong's capital market's enthusiasm for retailing is also an important factor due to the good macroeconomic environment, the hot financial investment market and the appreciation of the renminbi.

　　 Big abacus

Opening up China market by listing in Hong Kong

Recently, Bain consultants, a leading international consultancy, and the Italy luxury goods producers association released the global luxury market report. In 2010, global luxury sales grew by 12% in the US, 6% in Europe, 22% in Asia, and 30% in luxury sales in mainland China. China has surpassed Japan as the world's second largest consumer of luxury goods.

"Today, many international luxury brands are most interested in the Chinese pocketbook. Since last year, many consumer companies who want to enter China's huge market have chosen Hongkong instead of London or New York." Ma Ruiguang said.

It is reported that most of the revenue of L'OCCITANE's company comes from the developed market, but it hopes to use the amount raised in Hongkong to open up China and other emerging markets. According to L'OCCITANE, the company will add 500 stores in the next 5 years, and the number of stores in China will double. LV has opened 27 stores in 22 cities in China in two years. OMEGA watches have opened 20 stores in the world in recent years, 14 of which are located in China. Prada has 104 direct outlets in the Asia Pacific region, accounting for 1/3 of the total number of global outlets. This year, the company plans to open stores in 9 cities such as Harbin, Guangzhou and Changchun, and plans to open 11 stores in 2012.

Huang Wenjie, executive director of Guangdong provincial circulation industry, said that after the commercial real estate boom, the cost of expansion of the second tier cities in China is increasing year by year. Listing has become an important channel for many retail enterprises to obtain development funds. This round of big names concentrates on Hongkong's listing. On the one hand, it can use Hongkong's capital market to get financial support quickly. In addition, Hongkong, backed by the Chinese market, knows more about the market demand information of the mainland.