GIC's Li Ning profit warning sends shares to 6-1/2 year low

[Confuseous]

(Reuters) - Private equity-backed Chinese sportswear brand Li Ning Co Ltd (2331.HK) warned of a "substantial decline" in profit for 2012 due to weaker sales and higher marketing costs, knocking its shares to a 6-1/2 year low.

The warning is the latest blow for China's domestic retail brands, which are facing challenges including high inventory, rising costs and competition from foreign brands such as Nike (NKE.N) and Adidas (ADSGn.DE).

"Investors are likely to lose confidence in the company due to its unclear market position and intensifying competition from local and foreign brands," said Conita Hung, head of equity research at Delta Asia Financial.

Shares in Li Ning, backed by TPG Capital TPG.UL and Singapore sovereign wealth fund GIC GIC.UL, fell as much as 7 percent to their lowest level since January 2006. The drop took its loss for the year to 13 percent, against a 1.8 percent gain for the benchmark Hang Seng Index finance/markets/index?symbol=hk%21hsi">.HSI

 

[ginfreely]

(Reuters) - Private equity-backed Chinese sportswear brand Li Ning Co Ltd (2331.HK) warned of a "substantial decline" in profit for 2012 due to weaker sales and higher marketing costs, knocking its shares to a 6-1/2 year low.

The warning is the latest blow for China's domestic retail brands, which are facing challenges including high inventory, rising costs and competition from foreign brands such as Nike (NKE.N) and Adidas (ADSGn.DE).

"Investors are likely to lose confidence in the company due to its unclear market position and intensifying competition from local and foreign brands," said Conita Hung, head of equity research at Delta Asia Financial.

Shares in Li Ning, backed by TPG Capital TPG.UL and Singapore sovereign wealth fund GIC GIC.UL, fell as much as 7 percent to their lowest level since January 2006. The drop took its loss for the year to 13 percent, against a 1.8 percent gain for the benchmark Hang Seng Index finance/markets/index?symbol=hk%21hsi">.HSI

Is there any stock that they invest that doesn't drop in price? So fed up of hearing price drop of whatever they invest in all the time.

 

[Narong Wongwan]

HJ is worst than Adam Cheng's 'Ding Hai' effect.

Li Ning is a crap copycat brand.

Thumbs up to him for able to market and the sell the crap stamped with his name to his fellow countrymen.

 

[palden]

As long as Temasek or GIC touch sure die. They are just gambling. Double up trying to recoup past losses. Carry on like this retirement age will be raised to 120 yrs old.

The best investors/traders are never scholars.

 

[garlic]

Li Ning and the other brand Erke.. both are crap..

 

[laksaboy]

GIC eh? Now you know why Li Ning opened a store in Ion Orchard.

The prices are a joke too. For all that money I could have got equivalent quality Yonex products and still have some spare change left over.