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Li Ning plummets 8.4% in HK
Source: Bloomberg News |
May 25, 2011, Wednesday
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LI Ning Co, China's largest sportswear maker, fell the most in more than two months in Hong Kong trading after the company said three senior executives resigned, adding to concern sales growth may slow.
The stock dropped 8.4 percent to HK$13.90 (US$1.79) at the close in Hong Kong, the biggest slump since March 17. That extends a 44 percent decline in the past year, the second-worst performance on the MSCI China Index. The benchmark Hang Seng Index was little changed.
Chief Operating Officer Guo Jianxin, Chief Marketing Officer Fang Shih-wei and Lin Li, head of the e-commerce department, have left, Zhang Xiaoyan, a company spokesman, said yesterday, without elaborating.
"The fact that more than one senior executive is leaving the company causes concern about its operations," Katharine Song, a Shanghai-based analyst at Sinopac Securities Asia Ltd, said. She rates the stock "neutral."
Yesterday's decline was the steepest since March 17, when the sportswear maker tumbled 10 percent after saying order growth in the second half won't surpass that of the first six months and rising costs will hurt margins.
Li Ning, based in Beijing and founded by the former Olympic gymnast of the same name, said on March 16 income growth in the country "has not quite translated into a sustainable increase in purchasing power for sporting goods."
Profit rose 17 percent to 1.1 billion yuan (US$169 million) last year, according to a stock exchange filing.
The stock dropped 8.4 percent to HK$13.90 (US$1.79) at the close in Hong Kong, the biggest slump since March 17. That extends a 44 percent decline in the past year, the second-worst performance on the MSCI China Index. The benchmark Hang Seng Index was little changed.
Chief Operating Officer Guo Jianxin, Chief Marketing Officer Fang Shih-wei and Lin Li, head of the e-commerce department, have left, Zhang Xiaoyan, a company spokesman, said yesterday, without elaborating.
"The fact that more than one senior executive is leaving the company causes concern about its operations," Katharine Song, a Shanghai-based analyst at Sinopac Securities Asia Ltd, said. She rates the stock "neutral."
Yesterday's decline was the steepest since March 17, when the sportswear maker tumbled 10 percent after saying order growth in the second half won't surpass that of the first six months and rising costs will hurt margins.
Li Ning, based in Beijing and founded by the former Olympic gymnast of the same name, said on March 16 income growth in the country "has not quite translated into a sustainable increase in purchasing power for sporting goods."
Profit rose 17 percent to 1.1 billion yuan (US$169 million) last year, according to a stock exchange filing.
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