Lining Made A Net Profit In The First Half Of 330 Million Months, And The Price Of Clothing Has Been Increased By 2%.

As a sponsor of sporting goods used by many national teams in Beijing Olympic Games, Lining sports (02331.HK) delivered a satisfactory mid-term answer shortly after the end of the Olympic Games.

Yesterday, Lining released the mid day report shows that in the first half of this year, Lining realized operating income of 3 billion yuan, an increase of 60.3% over the same period last year.

Among them, net profit of 333 million 700 thousand yuan, an increase of 68.3% over the same period, the company sent a medium-term interest rate of 0.0963 yuan.

China Daily reported that in the first half of the year, Lining's clothing products business income was 1 billion 448 million yuan, an increase of 45.8% over the same period.

Footwear business income of 1 billion 385 million yuan, an increase of 81.9% over the same period.

Lining said, the impact of the Olympic Games, the overall consumption of domestic sporting goods market increased significantly, which also led to a substantial increase in the sales volume of Lining products.

Influenced by the news, Lining sports yesterday rose 3.441% in the unfavorable situation of Hong Kong stocks falling by 2.29%, closing at HK $19.84.

Zhang Xiaoyan, assistant director of Li Ning Co and director of public affairs department, said that during the Olympic Games, the sales volume of Lining sports in Beijing has increased significantly.

Among them, sales of flagship stores such as Lining Wangfujing store are significantly higher than the same period in previous years.

But the specific sales figures Zhang Xiaoyan said it is not easy to disclose at the moment.

According to Zhang Zhiyong, chief executive and executive director of Lining, in from August 8th to 24th, the same store sales in China increased by 43%.

Chen Weicheng, chief financial officer, said that over the past six months, the number of labor and raw materials has increased. During the period, the company has increased its price of clothing by 2%. It is expected that by 2009 the price of clothing will increase by 10% and footwear will increase by 6% in the first quarter.

The latest research report released by Shenyin and Wanguo pointed out that Lining expects to continue the current good operating income in the second half of the year, and will continue to buy for the deepening of its multi brand management strategy, and the next target buyer will probably come from badminton.

Goldman Sachs's research report suggests selling Lining.

According to the report, although Lining's performance in the first half of the year is generally in line with the bank's expectations, its gross margin is only 12.8%, but it is lower than the market forecast. Besides, the main business Lining brand performs better, but the other brands run less than expected.