Hong Kong's Regina Miracle drops after scaling 4-yr high on Victoria's Secret deal

Regina Miracle International (Holdings)

26/01/2022 04:57

** Shares of lingerie maker Regina Miracle International
 2199.HK  drop 10.7% to HK$6.70, their biggest daily percentage
decline since May 2020, as the stock gives up all gains after
hitting an over 4-year high fuelled by Victoria's Secret JV deal
    ** Stock jumped 6.7% in early trade to HK$8, highest since
November 2017, before it lost steam and fell to lowest since Jan
18
    ** Victoria's Secret & Co  VSCO.N  said on Tuesday it will
sell a 49% stake in its China business to Regina Miracle for $45
million in cash, aiming to boost sales with the help of a local
partner  urn:newsml:reuters.com:*:nL4N2U52ZY
    ** The two companies will form a joint venture, with Regina
Miracle operating all Victoria's Secret stores and related
online business in China 
    ** Jefferies says the JV will help enhance China business of
Victoria's Secret as the partnership will improve the speed of
the business, driving better sales and earnings growth in the
market over time
    ** Regina Mircale says the JV with Victoria's Secret, one of
its customers, will provide the firm an opportunity to capture
growth of China's intimate clothing sector  urn:newsml:reuters.com:*:nFWN2U50N1
    ** Hang Seng consumer goods and services index  .HSCGSI 
falls 1.3%, Hang Seng Index  .HSI  climbs 0.2%


 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))