Domestic Sporting Goods Sector Usher In New Opportunities For Development

In the past six months, capital

The market is cold.

Under the overall trend of high inventory and low profit industries, the domestic sporting goods unit has always been determined to face the cold current and walk according to its business logic.

In the near future, the sporting goods companies that have been losing the market have suddenly become stronger. The industry analysis is that the sector is ushering in a new opportunity for development after re capitalization.

Hot sports stocks

On the eve of national day, after the report on "capitalization of sporting goods stocks" was published, the sporting goods unit that had been losing to the big market suddenly stepped up in just a week.

In October 4th, Hong Kong stocks rose by 1.7%. Under the influence of this trend, the sporting goods stocks, which had picked up at the end of September, were also collectively heated up.

The rise was XTEP international, the day the rise was 10%, 3.03 yuan, and Lining's share price rose by 8.8% to 4.66 yuan.

It has been 8 months since the last collective rally of sports stocks.

In September 24th, the prestigious investment agency, UBS, released a 44 page report saying it was optimistic about mainland sporting goods shares and gave Anta, XTEP and Lining a "buy" rating.

Stimulated by this report, in late September, the sporting goods sector was good.

HKEx paction data showed that during the week before the national day, Anta and XTEP rose by 9.2% and 6.7% respectively. Li Ningsheng's 5.4% offer was 4.08 yuan, and the 360 degree rise was 5.9%, with a price of 1.99 yuan.

The market believes that all this is related to UBS reiterates its "buy" rating on Anta, XTEP and Lining, and raises Lining's target price from 6 yuan to 6.5 yuan.

"UBS optimistic about sporting goods shares, mainly based on the industry's past decline, is ending integration process."

Ni Zhongsen, head of Hengrun Financial Consulting Co., believes that the re strengthening of sports stocks is not unexpected. In the UBS report, "sporting goods stocks" will be the first to recover in the mainland's non essential consumer goods stocks.

"It seems that the facts are also being verified.

According to a press survey, after the re capitalization, the above sporting goods stocks, which ended in the end of the integration period, slowed down the pace of closing stores before and reorganized marketing business from a strategic level.

UBS evaluation seating

"A truly powerful brand is fully equipped with the industry problem of resistance."

Half a month ago, Xiao Lihua, XTEP's brand operation manager, told the business daily reporter, "now the so-called industry inventory problem is actually not as terrible as the outside imagination. In the face of the rise of quality and brand, XTEP is more confident to go international and bend over."

A business reporter survey found that despite the group's popularity, the prospects for individual stocks still rank in the rating agencies such as UBS.

According to the report, UBS is more optimistic about the three stocks of XTEP, Anta and Lining in many sporting goods shares. The three have been rated as "big cities", while the rest of the domestic sports stocks, PEAK and 361 degrees are neutral.

The reason for UBS's "favouritism" is also clear. "Undoubtedly, XTEP's performance data in sports stocks are the best among the three stocks. Under the leadership of TPG, Lining has moved forward in the right direction of inventory management, distribution structure, formal distribution process, and Anta's cash balance is strong, similar to XTEP's. it is expected that the two big companies will send a high dividend this year to 2014."

Goldman Sachs continues to fail

Although some investment institutions are promising, people in the industry have expressed caution.

"It has been heard that the inventory of sporting goods exceeds the warning line. Even if the whole line is stopped, the inventory will be enough to digest for three years, and I am not optimistic about the sports sector."

Yesterday, on the other hand, Ren Wei, an analyst at Quanzhou branch of Huafu Securities Co., Ltd., said that the current rise in sports stocks is a capital speculation or the real impact of industrial revitalization. I am afraid it will still be waiting for some time.

Goldman Sachs, who has been deeply worried about sports stocks this year, has recently spoken against UBS.

Goldman Sachs said it is too early to say that sports stocks have bottomed out.

The reason why sports stocks are all rising is that the number of orders in China from September to January of next year is 6% lower than that of the foreign sports brand Nike.

The bank pointed out that the decline in Nike orders was due to the intention to reduce the number of distributors' inventories, not to represent a drop in their market share.

In response to the most sensitive inventory problem, Goldman Sachs did not hesitate to say small and medium-sized.

The company's withdrawal from the market, or the reduction of production capacity, merely reflects the problem of overcapacity, which can not be used as an indicator of the industry's bottom. It is estimated that sales and gross margins of the industry will not be improved immediately.