Sports Brand As A Whole Is "Flaunt"

Half year report six

During the past 10 years, a number of sports companies under the "Fujian Legion" have been rapidly growing stronger and larger, and many listed companies have emerged, becoming a major highlight in the development of Chinese clothing.

Judging from the overall size and strength of the enterprises, the leading brands of these enterprises are none other than Anta. In the first half of the year, its sales amounted to 4 billion 450 million yuan, and the industry has evaluated that it has replaced Lining as the NO.1 of China's sports brand. However, the differentiation between male and female listed companies is obviously different. Apart from the leading brands, the strength of several enterprises such as 360, XTEP, PEAK and so on has been stronger, to some extent, they can be said to be "evenly matched". In the first half of the year, turnover was 3 billion 186 million yuan, XTEP was 2 billion 570 million yuan, PEAK was 2 billion 256 million yuan, and the gap between them was not very obvious.

From the perspective of product characteristics, several enterprises have their own advantages. XTEP Clothing and footwear products emphasize fashion features; 360 degrees and PEAK's footwear products are strong, competitive in the field of basketball shoes and so on; leader Anta's shoes and clothing products have strong comprehensive strength, and have great potential to go hand in hand. In the first half of the year, the total sales of clothing and accessories products were 2 billion 240 million yuan, and footwear sales amounted to 2 billion 208 million yuan.

From the point of view of the channel, the strategies of several listed companies are deep ploughing and meticulous two or three line market, expanding the first tier cities, and the total number of stores in three enterprises, including 360 degrees, XTEP and PEAK, now exceeds 7000, and the number of Anta's various stores has reached more than 9400. At the end of the year, it is expected that they will take the lead in entering the era of "Wan shop". It can be said that they are in the 234 line market and the public. market The comprehensive occupancy rate has not been able to be shaken by Nike and ADI.

Anta: at the end of the year, it will take the lead in entering the era of "Wan Dian".

Anta sports (02020.hk) grew 28.9% to 4 billion 450 million yuan in the first half of the year, with a net profit of 930 million yuan, an increase of 22% compared with the same period last year, with a gross margin of 42.8%, down 0.9 percentage points from 43.7% in the same period last year. According to the calculation of the third party market and interviews by various brand dealers, Anta's sales volume has exceeded Lining in the first half of the year, becoming the largest national sporting goods company in China.

Meanwhile, the order volume of Anta's three and fourth quarter orders is ideal, representing an increase of 20% and 25% respectively over the same period last year. Orders for orders increased by 15% in the first quarter of 2012, down from 22% on average in 2011. The average selling price of its products has increased by more than 10%, supporting the growth of orders.

Anta currently has a series of professional sporting goods and sports life. children Sporting goods series. In the first half of the year, the company increased its average selling price, provided more product categories and expanded distribution network, so its turnover increased by 28.9%. About 1200 new shoes, 2000 garments and 800 accessories were introduced.

According to the category, the proportion of clothing and accessories sales increased from 49.6% in the same period last year to 50.4% in the first half of this year, with a total sales volume of 2 billion 240 million yuan, an increase of 31% compared with the same period last year, while sales of footwear decreased from 50.4% in the same period last year to 49.6% this year, with sales of 2 billion 208 million yuan, an increase of 26.9% over the same period last year. In addition, the gross margin of footwear and accessories decreased by 3.6 and 0.7 percentage points to 42.8% and 40.7% respectively, while the gross profit margin of clothing products increased by 2 percentage points to 43%.

From the perspective of regional turnover, the turnover in the three regions of the eastern, southern and northern regions of the domestic market basically maintained at 13-15 billion yuan, of which the sales growth in the southern region was slightly ahead. Overseas markets were outstanding, earning 18 million 300 thousand yuan in the first half, up 118% from 8 million 400 thousand yuan in the same period last year.

As of June 30th, the company managed the national distribution network through about 60 regional distributors. The number of Anta professional sporting goods stores increased by 295 to 7844. The total sales area and the average sales area were 937 thousand square meters and 119 square meters respectively. Anta Sports Life Series reached 920, an increase of 171 compared with the end of last year, and the number of children's sporting goods stores increased by 123 to 506. In addition, Anta's FILA brand, which was acquired in 2009, has continued to develop this year. As of June 30th, there were nearly 200 stores in major cities in the mainland, and nearly 10 stores in Hongkong and Macao.

The company plans to increase the number of sporting goods stores to 8200 by the end of the year, expand the range of sports life shops to 1100, expand the children's sporting goods stores to 600 stores, and expand the FILA stores to 300, thus bringing the total number of shops to 1, and take the lead in the sports brand "WanDian" operation era.

In addition, Anta has expanded its influence on sports and leisure and children's sporting goods market through network advantages. It strategically strengthens the influence of e-commerce, and cooperates with Taobao, Le Tao, Amazon and Holland buying platforms to attract more online shoppers.

Ding Shizhong, chairman of Anta's board of directors, said that Anta is confident of the future because of its strong domestic demand market and the government's vigorous advocacy of the concept of "national fitness". In the future, the market for mass sports goods will still maintain a relatively fast growth, and the market demand resulting from it will be the premise and foundation for Anta's rapid growth.

XTEP: the two or three line market coverage is about 80%.

XTEP International (01368.hk) grew 26% to 2 billion 570 million yuan in the first half of the year, net profit of 466 million yuan, an increase of 25% compared with the same period last year, and gross margin of 40.9%, up 0.2 percentage points from 40.7% a year earlier. During the period, the wholesale revenue of XTEP brand products increased by about 13% per retail store.

In terms of product innovation, in the first half of, XTEP launched a series of ultra light and comfortable running shoes, weighing only 170 grams, lighter than other running shoes, reaching the lightest standard of major international marathons. From the two aspects of design and function, XTEP has expanded its brand to 8 major products, including running, football, basketball and so on. Tennis Outdoor sports, leisure, skateboarding and fashion series are divided into 24 sub series. Clothing products are also extended to 6 major series, including football, running, tennis, comprehensive, urban and cowboy series, divided into 11 sub series. During the reporting period, the styles of shoes and clothing products were more than 2000 and 2700 respectively.

During the reporting period, the revenue of XTEP brand clothing increased by 29.3% to about 1 billion 400 million yuan (1 billion 100 million yuan in 2010). The strong revenue growth was mainly due to the 17.6% to 23 million 500 thousand sales volume (20 million in 2010) and the average wholesale price rose 10% to 57.8 yuan (52.5 yuan in 2010).

As of June 30th, the number of XTEP's international retail outlets increased by 407 to 7438, an increase of 14.1% over the end of last year, with a total sales area of 645 thousand square meters and 87 square meters on average. Among them, there are 40 flagship stores. XTEP brand attaches importance to the expansion of the network in the two or three tier cities, with its coverage reaching nearly 80%. The company plans to expand the number of XTEP brand retailers to 7900 by the end of 2011.

Guotai Junan analysis researcher Peng Gangxiang pointed out that XTEP's 2011 performance is in line with expectations. At the same time, the order for 2012 increased by 21%, better than 15% of Anta and 20.5% of PEAK, but slightly less than 23% of the 31st degree. Orders for footwear and clothing have increased by double digits, and the average retail price has increased by 8%-10%. It is expected that the company will maintain an order growth rate of about 20% in 2012. Maintain "buy" rating.

Chen Ziwen, an international analyst at ICBC, points out that XTEP's interim results are slightly better than expected, maintaining XTEP's "buy" rating. The median profit grew 25% to 466 million yuan over the same period, slightly higher than the estimated 452 million yuan.

The company's core brand, XTEP brand sales increased 29% over the previous year, exceeding the previously announced order growth rate (24%). The company said it was due to a small number of running shoes in the first half. In the first half of the year, the average price of footwear and clothing increased by 10%. Management revealed that the same store sales increased by 15% over the same period last year.

During the reporting period, the overall working capital cycle of the company was extended from 27 days to 66 days, and the inventory turnover period was greatly extended from 46 days to 81 days. In the first half of the price fluctuation of raw materials, the company purchased raw materials for the third quarter products in advance to improve gross profit margin, and accumulated a lot of finished products in the third quarter of June. Management indicated that the production was normal and that the number of days of inventory turnover would be reduced by the end of the year. It is expected that the inventory turnover period will remain at 80 days by the end of the year.

In addition, in order to enrich the product mix, the company plans to launch a new XTEP. Children's wear The "1+1" series opened 100 "1+1" stores by the end of 2012. At the same time, the company also plans to increase the production capacity of shoes in Hunan province and set up a new production base in Anhui in 2013.

31st degree: Sales of shoes increased by 82.36% over the same period last year.

The turnover in the first half of the year (01361.hk) exceeded 3 billion yuan, an increase of 23.78% to 3 billion 186 million yuan over the previous year, a net profit of 773 million yuan, an increase of 38.04% over the previous year, a gross margin of 42.3%, an increase of 2.7 percentage points over the same period last year, of which 42.4% percent of footwear product gross profit, 40.9% of gross profit rate of clothing products, and 36.4% of accessories and gross margins.

In the first half of the year, the average selling price increased by 31st, so the turnover increased by 24.7%. According to the category, sales revenue of shoes, clothing and accessories increased compared to the same period last year, especially in the first half of the year, the sales volume of footwear and clothing sales exceeded 1 billion yuan, of which 163 million 710 thousand pairs of shoes were sold, and sales reached 1 billion 654 million yuan, up 82.36% from 907 million yuan a year. Sales of clothing products were 156 million 730 thousand, sales reached 1 billion 461 million yuan, 10.37% yuan lower than last year's 1 billion 630 million yuan, and accessories category also maintained a larger increase, up from 38 million yuan last year to 86.84% yuan.

In addition, the 360 degree children's clothing has also achieved satisfactory results. With the brand advantage and distribution mode of 360 degrees, the order amount of this year's autumn / winter children's wear product orders increased by 60% over the same period last year. Up to now, there are 766 children's clothing stores in 360, an increase of 530 from 236 in the same period last year.

On the production side, the five mile production Industrial Park in Jinjiang is completed. The new production base has a capacity of about 5 million new cars per year, accounting for about 16% of the group's sales in the year. In addition, it has established a sole factory with a sole manufacturer in Taiwan, Jinjiang, Fujian, with a 51% stake, which aims to obtain the supply of factory shoe soles in a regular and cost-effective way.

In the first half of the year, with the continuous improvement of the distribution network, the Chinese market revenue increased by 3 billion 186 million yuan, up 23.78% over the same period last year. Sales in the north were outstanding, and the income in the first half of the year was 1 billion 181 million yuan, up 42.12% from 831 million yuan in the same period last year.

As of June 30th, compared with the same period last year, the number of retail outlets increased by 754. In the first half, 418 newly opened retail stores reached 7681, an increase of 10.88% compared with the same period last year. The total sales area and average sales area were 777 thousand and 100 square meters and 101.2 square meters respectively. Among them, the number of independent shops was 5586, accounting for more than 70% of the total number of retail outlets, 77 of flagship stores, and 361 361 Towns.

In the second half of this year, 31st degree will intensify efforts to build a new generation flagship store "361 degree Towns" and concentrate on optimizing the operation of "361 degree Towns" in Zhengzhou, Ji'nan, Wuhan and Harbin.

PEAK: sales break 2 billion mark in the first half

PEAK sports (01968.hk) turnover exceeded 2 billion yuan mark in the first half of the year, an increase of 24.7% to 2 billion 256 million yuan compared with the same period last year. Net profit was 423 million yuan, an increase of 22.1% over the same period last year; gross profit margin was 39.9%, up 2.2 percentage points from 37.7% in the same period last year, of which the gross margin of footwear products increased by 1.8 percentage points to 39.6%, and the gross profit margin of clothing products increased by 2.6 percentage points to 2.6. Meanwhile, the sum of orders increased by 23.6% in the third quarter of 2011, and the sum of footwear and clothing orders increased by 31.1% and 18.5% respectively.

According to the category, sales revenue of footwear, clothing and accessories continued to increase compared to the same period last year, especially sales of footwear and clothing in the first half of this year exceeded 1 billion yuan, including footwear category. product 11 million 800 thousand pairs were sold, sales reached 1 billion 19 million yuan, an increase of 22.9% over the same period last year, 24 million 100 thousand clothing products were sold, and sales reached 1 billion 194 million yuan, an increase of 26.8% over the same period last year.

In terms of product innovation, PEAK launched 381 new footwear products, 644 new clothing products and 399 new accessories products in the first half of this year, compared with XTEP's about 2000 new shoes and 2700 garments, the research and development of products are slightly inadequate.

In the first half of the year, the PEAK Sports China market earned 2 billion 23 million yuan, an increase of 25.3% over the first half of the year, accounting for 89.7% of the total turnover, of which the sales performance in the East was outstanding, and the income in the first half of the year was 855 million yuan, up 30.6% from the 655 million yuan in the same period last year. It is worth pointing out that as the demand for emerging markets in Asia and Africa has increased, the income of PEAK sports overseas market has reached 233 million yuan, an increase of 20.2% over the same period last year, accounting for 10.3% of PEAK's total turnover in the first half of this year.

From the point of view of production, the majority of PEAK sports products are still outsourcing production. In the first half of, PEAK sports produced 12 million 300 thousand pairs of footwear products, 52% of which were outsourced products, and 24 million 700 thousand of apparel products, of which 75.3% were outsourcing products. In this regard, PEAK sports plans to invest 80 million yuan in the second half of the year to expand its capacity. The shoe factory in Shanggao County, Jiangxi Province, is expected to be put into operation by the end of 2012. The garment processing factory in Huian County of Fujian province is expected to be put into operation by the end of 2013. In addition, PEAK sports also plans to invest 1 billion yuan to build a garment production base in Heze, Shandong, and is expected to start construction in 2012, which has been completed for 3 years.

As of June 30th, compared with the end of 2010, the number of PEAK sports retail outlets increased by 395, reaching 7619, an increase of 14.1%. The total sales area and the average sales area were 595 thousand square meters and 78.2 square meters respectively. The average turnover of each retail outlets was 273 thousand yuan, up 10.1% over the same period last year. Among them, the two or three line city is also the focus of PEAK sports layout. At present, its number of retail outlets in two or three domestic cities reaches 7193, accounting for 94.4% of the total number of shops. In the future, most of its new retail stores will be located in two or three tier cities.

Goldman Sachs said PEAK store size, current price and brand positioning relatively low base, has the best potential to maintain higher than the average growth of the industry. Reiterate the "buy" rating.