Lyon'S Approval Of Lining'S Share Pfer Is Difficult.

According to Hongkong Economic Daily reported that gymnastics Prince Lining [4.39-4.57%] intends to

(02331) shares were injected into the [0.12-4.17%] (08032) paction of the extraordinary China, which led to a sharp approval by the securities firm Lyon, who believed Lining was in the sports shoes unit.

Difficulties and share prices are at a critical juncture. Sudden reduction is a negative move. It also means that the private equity fund's TPG short line has failed to turn Lining around.

Lining (HK:02331) latest price: 4.390.214.57% market trend

Lining's share price did not stop yesterday, and it was 4.35 yuan lower at a time, closing at 4.39 yuan, or 4.6%.

Especially on Wednesday, when it rose more than 80%, it also showed up yesterday, down 4.2% and closed at 0.115 yuan.

Disguised reduction means no improvement in business.

In October 18th, a report was issued to criticize Lining's pfer of shares to the extraordinary practice, which is equivalent to the reduction of shares of the company, from the current level of 25% to 18% to 20% (depending on whether the convertible bonds can be exchanged for profit or not).

Analysts of the bank believe that Lining's reduction in the face of challenges in the industry shows that the company's business has not improved. His personal commitment to increase shares will not be fulfilled.

Lyon also pointed out that although Lining was the first exercise unit to reduce inventory, it did not mean that it could become the first enterprise to solve inventory problems, because Lining's distribution network and distribution structure level were more than that of the same industry, and the quality of distribution management was also poor. In the interim results, it was estimated that 886 million yuan should be accounted for, and the account period would be 180 to 270 days after the end of September.

Lyon maintains Lining's target price of 3.6 yuan, and the investment rating "sells".