China'S Sports Brand Has Huge Market Potential.

In today's "Q-Series theme report: which products have the greatest potential in China", Simon Smiles, an analyst at UBS Asia, estimates the potential market size of different products / services, and calculates the underlying potential on the basis of current market size.

Among the 23 categories of consumer products analysed in the report, the growth potential of the famous brand sneakers is third in the next 10 years.

Although some investors worry that the sports apparel market will soon reach saturation point, the report believes that the increase in the purchasing power will result in a steady growth in the market in the next 10 years.

Although we estimate that the scale of China's sports shoes market, including famous brands and general brands, is expected to reach 69 billion yuan in 2010, the report shows that by 2020, the market size of famous brand sports shoes has reached 297 billion yuan, that is, the compound annual growth rate of 15.7% in 10 years.

In our report published in March 4, 2010, "Belle (BELLE International): If trade fairs canprovide indications", we point out that the pre-sale figures of many BELLE interbank orders reflect strong dealer confidence, which is a positive indicator of consumer demand.

In addition, we expect the strong growth to continue until May, when these shoe companies will hold the 4 quarter 2010 order meeting.

Anta and Lining are two main stocks of "China's potential market" concept.

We have a neutral view on the sneaker plate, but we point out the main stock of "China's potential market" concept recommended by Anta and Lining and UBS.

In our stocks of Chinese sports shoes, we give Anta, Lining and XTEP "buy" rating.