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Glorious Sun spreads the gains

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Glorious Sun Enterprises is among that select group of Hong Kong-listed garment manufacturing stocks on a bull run in recent months as big Western brands turn to outsourcing in low-cost Asia.

Glorious Sun turns out clothes for the likes of DKNY, The Gap and JC Penney from its factories on the mainland, Bangladesh, Cambodia, the Philippines and Indonesia.

But last week Glorious Sun demonstrated again it was capable of doing far more than just the grunt work of the fashion world when it tied up a joint venture deal with Quiksilver to distribute the California-based sports and swimwear giant's products on the mainland.

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Both companies are confident the partnership will bring tremendous benefits.

'China is increasingly linked to the global youth culture,' said Quiksilver chairman Robert McKnight.

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'While the development of the board-riding culture is still in its infancy in this [Chinese teenage and young adults] market, indoor snow parks and skate shops are beginning to show up in a number of high-profile locations.'

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