The distributor YGM Trading (0375.HK) plans to acquire European luxury brands to expand its portfolio in China, a promising market that may well become the first in the world within 10 years.
YGM, which already holds licenses on Aquascutum Asia and the French brand Guy Laroche, said Tuesday aimed unlisted companies, European, preferably already in the Asian market.
“We really think our strength is in Asia, and it is a growing market,” said the CEO Shirley Chan.
Immediately after the announcement, the action group YGM – with a market capitalization reached $ 435 million (300.4 million euros) – has jumped from 9.3% to its highest since December.
YGM, which distributes men’s suits, evening dresses and leather goods from a range of brands wanted to expand “more aggressively” in China in coming years.
According to analysts, YGM has ample cash to engage in acquisitions, or 54.85 million dollars last fiscal year, nearly double the previous year.
Last week, YGM has reported an annual profit increase of 42.4% for the fiscal year ended in late March, to 36 million. Buoyed by strong demand in China, its sales came out up 16.4%.