Sporting Goods Stocks Rose Nearly 30% Over The Past Three Weeks.

Since September 27th, the sporting goods unit has been on the rebound, and has continued to rise after the national day.

As of 16 o'clock yesterday, most sporting goods companies had risen by more than 30%, and the share price of many companies rose by more than 10% a day.

Among them,

In more than three weeks, the stock price has risen 31.9%, XTEP has risen 34.9%, and 360% has risen 22.7%. PEAK has risen 31.5%, and Lining has risen 14.7%.

Sports stocks were collectively heated up

Analysis says,

The recent collective rise of stocks is partly stimulated by the institutional optimism.

In September 27th, UBS published a 44 page analysis, predicting that sports clothing will become one of the fastest recovery sectors of non essential consumer goods, and more to Anta, XTEP and Lining's "buy" rating.

On the same day, XTEP, Anta and

Share prices rose with the big market, of which Anta rose nearly 4.81% to 5.44 yuan, while XTEP and Lining rose 0.39% and 1.04% respectively.

Next, in September 28th, the sporting goods unit was popular. Among them, XTEP rose 10.71%, Anta rose 9.56%, Lining rose 6.72%, PEAK rose 10.48%, and the 360 degree rise was 9.04%.

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.

Led by XTEP international, the day rose 10%, to 3.03 yuan, Lining stock price rose 8.8%, to receive 4.66 yuan, and the rest of the sports brands also have 4% to 8% increase.

It is understood that the recent surge in sporting goods stocks is the mid-term of the Olympic Games.

In August 6th, in the domestic sporting goods unit, Anta sports rose 17.15%, recovering the lost territory in nearly a month; Li Ningzhang 12.15%, XTEP international rose 8.75%, PEAK sports rose 8.93%, and the 31st degree was up 5.71%.

Investment banks frequently raise their ratings

In September 27th, UBS reported that the consolidation stage of sports apparel industry was nearly completed.

Most of the listed companies have slowed down, while most of the non listed sports apparel enterprises still operate or reduce the scale of operation.

The bank expects that the mainland's leading sports apparel companies have been reorganized recently, and the mainland brands must improve their replenishment capacity to improve their distribution system.

To this end, the bank reiterated its "buy" rating on Anta, XTEP and Lining, and raised the target price of Lining from 6 yuan to 6.5 yuan.

In October 17th, Credit Suisse increased Anta's target price by 50% to 7.8 yuan, and the rating was raised to "win the market". The report pointed out that the rebound in the share price of the sports sector has reflected the factors such as the recovery of industry income and profits in the first half of 2013.

In addition, the Bank of America, Merrill Lynch recently released a report on sporting goods stocks, seeing some positive signs at the retail level: the reduction of new products in autumn and winter, the improvement of retail inventory, the improvement of profitability of some large domestic brand retailers, and the acceleration of industry consolidation.

To this end, Bank of America Merrill Lynch upgraded Anta's rating from "neutral" to "buy". The target price rose from 4.8 yuan to 8 yuan; the 31st degree rating was raised from "neutral" to "buy", the target price was raised from 2.12 yuan to 3 yuan; China's trend rating was raised from "running big market" to "buying", and the target price was raised from 0.6 yuan to 1.4 yuan.

Whether recovery is still controversial

It is understood that as of the end of July this year, the share price of some sporting goods shares fell by 50%.

However, from the late September to the current collective performance of sporting goods stocks, the industry is accelerating the recovery of lost territory.

However, in the judgement of the long-term trend of stock prices, there are still different voices in the industry.

Credit Suisse expects industry earnings and earnings to bottom out in the first half of next year, and the possibility of going to inventory will end in the second half of next year. Sales growth in the same store is at its worst and is expected to slow down in the fourth quarter of this year.

Bank of America Merrill Lynch also expects mainland sporting goods stocks to rebound. Investors are advised to buy selectively, such as the market leader, Anta sports with strong supply chains, low valuations with a dividend yield of 360% and China's trend.

However, Goldman Sachs announced in early September that it had terminated the study of four mainland sports brand stocks, including China's trends, XTEP, PEAK and 31st degree, and pointed out that the mainland sporting goods industry will enter a long-term downward cycle, mainly due to two structural problems, one is the slowing down of consumer demand, two is the fierce competition in the industry due to oversupply of similar products and excessive expansion of retail networks.