Xtep expects profit to rise 100% this year

Xtep International Holdings Ltd, a well-known Chinese sports wear producer, said on Tuesday that its net profit for this year is likely to increase 100% to HK$520 million.

The company's market share in China stood at 3.4%, only next to some international titans such as Nike and Adidas. And it booked a net profit of RMB 222 million in 2007, according to its IPO prospectus.

Boosted by rising retail prices in the nation this year, average prices of sport products may rise 15%, said company chairman Ding Shuibo, and Xtep will reach industry benchmark levels.

Xtep, also the sole distributor of Disney Sport in China, sold sport shoes at an average price of RMB 70 a pair and RMB 54 a piece for garments last year.

The company plans to offer 550 million shares for sale in its Hong Kong IPO with the indicative offer price ranging from HK$4.05 to HK$5.50. The shares are scheduled to start trading at Hong Kong Stock Exchange on Jun. 3.

Public subscriptions are ongoing from today till next Monday. Based on the medium offering price of HK$4.78, about HK$2.15 billion proceeds will be raised from the IPO, excluding all kinds of costs.