Topic: How To Invest

Pat: What do you think of Chinese shoe seller Zungui Haixi? Thanks.

Article Excerpt

Zungui Haixi Corp., $1.85, symbol ZUN on Toronto (Shares outstanding: 56.4 million; Market cap: $89.9 million; www.zunguihaixi.com), makes and sells athletic shoes, clothing and accessories in China. It also sells casual leather shoes. Zungui markets its casual and athletic sportswear under the Zungui brand, which is the eighth-largest domestic sportswear brand in China by revenue. The name Zungui comes from the Chinese symbols meaning “noble.” Zungui uses its “You are strong” slogan to promote its athletic products, and “High Quality, Fashionable and Durable” to promote its casual products. Zungui sells its clothing and footwear through 103 corporate-owned stores. The company also works with 47 distributors that sell its products through a network of 1,965 retail stores. Of that total, 1,555 sell the athletic products and 410 sell the casual products. All stores operate under the Zungui brand. In the three months ended March 31, 2011, Zungui’s sales rose 33.8%, to $44.6 million from $33.3 million a year earlier. Earnings per share rose 12.5%,…