Anta'S First Three Quarter Orders Rose 50%

Anta sports (2020) released its first annual results list after listing yesterday, and its earnings rose more than 2.6 times, nearly 40% higher than its earnings forecast in the prospectus.

The company's chief operating officer, Lai Shi Hsien, revealed that Anta has received orders for the first three quarters of this year, an increase of 50% over last year. It is ideal and expects that the gross margin level can be further increased from about 33% to 38%.

The group released its year-round results as at the end of December last year, and recorded a turnover of 3 billion 182 million yuan (the same below), a significant increase of 154.6% over the same period of 06 years, a profit of 538 million yuan, an annual increase of 264.8%, a 39.9% rise in earnings forecasts in the prospectus, 25.3 cents per share, and 8 cents per share at the end of the year, with a closing date of from April 16th to 21st.

In the review period of more than 2.6 times earnings, Anta's gross margin increased by 8.1 percentage points to 33.2%.

Even though labor costs and raw material prices are on the rise, Lai said at the performance press conference that the gross profit margin could be further raised to 38% during the year through expanding the scale of development and adding brand effect.

He also revealed that the company has already obtained the first three quarter orders this year, and the figures are up 50% over the same period last year, and the growth is strong.

He further pointed out that the group began to actively expand its overseas business in the second half of 06, and plans to intensify its efforts in 09 years. The target is to increase the proportion of overseas market to total turnover in 2011 to 5% to 8%.

At present, Anta is mainly concentrated in Southeast Asia and Eastern Europe, and the proportion is still relatively small.

As of the end of last year, Anta sports shoes reached 11 million 400 thousand pairs of capacity, clothing production capacity reached 1 million, the internal production ratio of 62.5% and 4.3% respectively.

Lai Shixian disclosed that the plan to increase 12 sports shoes production lines, 5 of which have been completed, and the rest are expected to be put into operation by the end of the year to the beginning of next year.

Anta plans to increase 800 large retail stores through distributors this year, and integrate 200 smaller stores. The number of retail outlets can be increased to 5300, and flagship stores will increase by 10.

The group also plans to upgrade the international brand retail outlets from about 170 to 230 to 250.

In addition, the chief financial officer Ling Shengping expects that capital expenditure will increase to 368 million yuan from last year's 264 million yuan this year. It is mainly used for opening stores and building operation centers.