Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Peak Sport Products Co., Limited (1968.HK)2010 Interim Results
26 August 2010
11
DisclaimerDisclaimer
The presentation is prepared by Peak Sport Products Co., Ltd (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and do not purport to be a complete description of the Company, its business, its current or historical operating results or its future business prospects.
This presentation contains forward-looking statements which are subject to market risks and uncertainties. This forward-looking statements can be identified by terminology such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar statements. Among other things, Peak's expectations with respect the footwear and apparel and other related businesses above contain forward-looking statements. Such statements involve certain risks and uncertainties that could differ materially from what we have discussed today to those in the forward-looking statements. In addition, any projections about Peak's future performance represent management's estimates as of today August 26, 2010. Peak Sport Products Co. Ltd does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise.
22
AgendaAgenda
Financial Review3
Business Operation12
Future Strategies21
Open Forum25
Financial Review
44
Results Highlights Key indicators Results Highlights Key indicators
(RMB million) 1H 2010 1H 2009 Change
Turnover 1,808.6 1,357.3 + 33.3 %
Gross profit 681.2 516.7 + 31.8 %
Operating profit 421.0 305.2 + 38.0 %
Net profit 346.6 267.4 + 29.6 %
Gross profit margin 37.7 % 38.1 % (0.4 pts)
Operating profit margin 23.3 % 22.5 % + 0.8 pts
Net profit margin 19.2 % 19.7 % (0.5 pts)
Basic earnings per share (RMB cents) 16.52 16.82 (1.8 %)
Diluted earnings per share (RMB cents) 16.51 16.82 (1.8 %)
Dividend per share (HK cents) 7.00 N/A N/A
Dividend payout ratio 37% N/A N/A
55
Results Highlights Key indicators Results Highlights Key indicators
Current ratio 6.7 8.4
Gearing ratio (1) 0.0 % 0.0 %
Net asset value per share (RMB) 1.49 1.43
(1) The calculation of gearing ratio is based on the total bank loans divided by equity.
(2) Average inventory turnover days is equal to the average of the opening and closing inventory divided by costs of sales and multiplied by the number of days during the period/ year.
(3) Average trade and bills receivable turnover days is equal to the average of the opening and closing trade and bills receivable divided by turnover and multiplied by the number of days during the period/ year.
(4) Average trade and bills payable turnover days is equal to the average of the opening and closing trade and bills payable divided by costs ofsales and multiplied by the number of days during the period/ year.
Avg inventory turnover days (days) (2) 40 36
Avg trade and bills receivable turnover days (days) (3) 74 70
Avg trade and bills payable turnover days (days) (4) 46 42
30 June 2010 31 Dec 2009
66
Results Highlights Turnover by market segments Results Highlights Turnover by market segments
China89.3%
Overseas10.7%
Asia Europe S. America Africa N. America Australia Total1H2010 3.9% 3.4% 1.8% 0.7% 0.5% 0.4% 10.7%1H2009 2.6% 4.5% 1.4% 0.5% 0.4% 0% 9.4%
Overseas market analysis by turnover in %
Market segments Market segments analysis
1H 2010(1H 2009: 90.6%)
(1H 2009: 9.4%)
(RMB in millions)
127.1 194.1
1H2009
1,230.2
1,614.5
China Overseas
31.2%
52.7%
1H2010 1H2009 1H2010
77
Results Highlights Turnover analysis Results Highlights Turnover analysis
RMB(million)
% ofturnover
RMB(million)
% ofturnover
Change(%)
Footwear 828.7 45.8 624.6 46.0 + 32.7
Apparel 941.5 52.1 701.4 51.7 + 34.2
Accessories 38.4 2.1 31.3 2.3 + 22.7
Total Turnover 1,808.6 100.0 1,357.3 100.0 + 33.3
1H 2010 1H 2009
Footwear 45.8%
Apparel 52.1%
Accessories 2.1%
1H 2010
2007 2008 2009 1H2009 1H2010
1,015
2,042
3,095
1,3571,809
33%
(RMB in millions)
Turnover by product category
Turnover growth Percentage of turnover
88
Results Highlights Sales volume, Average unit selling price Results Highlights Sales volume, Average unit selling price
Revenue (RMB million) 828.7 624.6 + 32.7 %
Volume (million) 10.3 7.6 + 35.5 %
ASP at distribution level (RMB) 80.5 82.2 (2.1 %)
Footwear 1H 2010 1H 2009 Change %
Revenue (RMB million) 941.5 701.4 + 34.2 %
Volume (million) 21.7 16.5 + 31.5 %
ASP at distribution level (RMB) 43.4 42.5 + 2.1 %
Apparel
31.8%CAGR: 94.7 %
516.7
681.2
306.0
667.8
37.7%38.1%32.7%
30.2%
37.5%
0
200
400
600
800
10%20%30%40%50%60%70%80%
99
Results Highlights Gross profit & Gross profit margin Results Highlights Gross profit & Gross profit margin
30.0%33.0%
37.2% 38.4% 37.6%
2007 2008 2009 1H2009 1H2010
30.3% 32.1%37.8% 37.7% 37.8%
2007 2008 2009 1H2009 1H2010
Footwear – Gross profit margin Apparel – Gross profit margin
0
10
20
30
40
0
10
20
30
40
Overall Gross profit(RMB in millions)
Gross profit margin
1,159.7
2007 2008 2009 1H2009 1H2010Gross profit margin (0.4% pts)
CAGR: 94.5%CAGR: 101.1 %
Results Highlights Profitability Results Highlights Profitability
1010
305.2421.0
177.4
717.7
417.6
23.3%22.5%20.4%17.5%23.2%
0
200
400
600
800
10%20%30%40%50%60%70%80%
Operating profit
346.6267.4
166.0
376.0
628.319.2%19.7%
16.4%18.4% 20.3%
0
200
400
600
800
0%
5%10%
15%
20%25%
30%
Net profit
Net profit margin
2007 2008 2009 1H2009 1H2010
(RMB in millions)
Operating profit margin 0.8% pts Net profit margin (0.5% pts)
(RMB in millions)
2007 2008 2009 1H2009 1H2010
Operating profit margin
38.0 % 29.6 %
1111
Results Highlights Cash flow Results Highlights Cash flow
1000
1500
2000
2500
Cash & bank deposits Net operating cash inflow
488.6
1,988.2
807.0
2,174.1
2008 2009 1H 2009 1H 2010 2008 2009 1H 2009 1H 2010
284.3 268.9
27.5
470.6
0
500
0
100
200
300
400
500
(RMB in millions) (RMB in millions)
Business Operation
1313
Multi-level cooperation with the NBA, the world’s most recognized basketball league
Stadium
NBA Players
Official Marketing Partner of the NBA in China Rights and license to use the NBA logo on advertisement of the Peak brand
Right to display signage in home stadiums of the Houston Rockets and New Jersey Nets The Houston Rockets are the most broadcast NBA team on CCTV.
Endorsed NBA players are required to wear Peak athletic footwear during trainings,tournaments and media conferences
12 endorsed NBA players (as at 30 Jun 2010)
League
Battier Artest Kidd Landry
Association with top renowned basketball promotion partners
Effective Marketing and Brand BuildingEffective Marketing and Brand Building
1414
Effective Marketing and Brand BuildingEffective Marketing and Brand Building
Other sports promotion partners
1515
New EndorsementNew Endorsement
Women’s Tennis Association (WTA)
Olga Govortsova
New Endorsed Athlete
Official footwear andapparel partner of the WTA tour
1616
Extensive Nationwide Distribution NetworkExtensive Nationwide Distribution Network
Total numbers of outlets 6,796 6,206 + 9.5 %
Number of flagship stores 15 12 + 25.0 %
Basketball specialty retail outlets 28 N/A N/A
Total gross sales floor area (sq. m) 503,098 453,038 + 11.0 %
Average sales floor area (sq. m) 74 73 + 1.4 %
30 June 2010 31 Dec 2009 Change %
Numbers of authorized retail outlets Retail outlets analysis
1H 2010
1st tier 5%
2nd tier 21%
2007 2008 2009 1H 20100
2000
4000
6000
3661
5179
6206 6796
Retail outlets increased by 590 in the 1H 2010
3rd tier 74%
(By types of cities)
1717
Authorized Retail OutletsAuthorized Retail Outlets
PEAK authorized retail outlets
PEAK basketball specialty retail outlets
In-house design team continues to improve PEAK’s
retail outlet image
Continues to explore innovative image
1818
Distribution Business ModelDistribution Business Model
Peak
Distributors
3rd party retailoutlet operators
Retail outlets
Consumers
Peak distribution business model 2010 Sales fair order book
Q1 30% ▲ 17 June 2009
Q2 35% ▲ 16 Sept 2009
Q3 34% ▲ 8 Jan 2010
Q4 31% ▲ 18 May 2010
36 distributors
3 sales fairs / year
Impressive growth
1919
Production Facilities & CapabilitiesProduction Facilities & Capabilities
1H2010 Production facilities
Outsourced 64.6%
Self-produced 35.4%
1H2010(FY2009: 60.9%)
(FY2009: 39.1%)
Outsourced 77.4%
Self-produced 22.6%
1H2010(FY2009: 80.4%)
(FY2009: 19.6%)
Footwear Apparel
Fengze (Fujian Province) 1.8 m pairs 1.2 m pieces
Shang’gao (Jiangxi Province) 1.9 m pairs --
Hui’an (Fujian Province) -- 3.9 m pieces
Self-production 3.7 m pairs 5.1 m pieces
Total actual production volume 10.5 m pairs 22.8 m pieces
Footwear Apparel
2020
Strong Market Research and Product R&D CapabilitiesStrong Market Research and Product R&D Capabilities
Strong R&D capabilities
Employed more than 200 research and design professionals
Introduced approximately 434 new footwear styles, 669 new apparel products and 343 new accessory products in the first half of 2010
Enhance products’ quality and functionality
- PK-Rocket “Cushion-3” system (PK Rocket三級減震技術技術)
- Strong ventilation (高強透氣性)
- Anti-skidding ripples (抓地水波紋 )
- Support and easy flexing capabilities (支撐性及易彎折的高端性能 )
Battier Kidd Artest Pietrus Landry
Latest basketball shoes for endorsed NBA players
Future Strategies
2222
Future StrategiesFuture Strategies
Market outlook
Continue to emphasize on international & professional brand image
Continued urbanization generates new and tremendous demands for sport
products in tier 2 & 3 cities
Change in life-style of general public results in more people participating in
sports which further increase consumption of sport products
Brand positioning
Product categories expansion
Leverage our highly recognizable basketball footwear brand to further penetrate into other sports categories, such as tennis, soccer, running
2323
Future StrategiesFuture Strategies
Target 1,000 more retail outlets in 2010 Launch more basketball specialty retail outlets Increase size of retail outlets to avg. 80 sq.m Continue to focus on tier 2 & 3 city markets
Adequately increase advertising & promotion expenditure, further enhance brand image Actively organize more promotional activities, such as NBA Star China Tour Continuously cooperate & sponsor NBA, FIBA and other sports events
Sales network expansion
Marketing & brand promotion
R & D
Complete setting up a design team in the U.S.A. to spur new product development
2424
Future StrategiesFuture Strategies
Invest approximately RMB100 million for the two production facilities -- Shang’gao & Hui’an
Production capacity enhancement
Footwear production capacity Apparel production capacity
1H 2010 1H 2010Capacity increase
(10-13)
2013 Capacity increase
2012
(10-12)
8.7
7.0
15.7
9.6
9.1
18.7
5
0
10
15
5
0
10
15
(pairs million) (pieces million)
Capacity expansion plan
Open Forum
Thank You www.peaksport.com