Sporting Goods Shares Go Out Of The Trough, Anta Sports

　　 universal It is believed that the revival of the mainland sports apparel industry is in sight, and Anta continues to be popular in the industry. However, the market is more concerned about the potential of China's potential because of its small holdings in Alibaba group.

On September 8th, sporting goods stocks recovered after nearly two years of low inflation. To sum up, the six general stock turnover is no longer based on sponsorship to promote sales, for example, Anta breaks the tradition, sells to the "brand retail" mode, changes the past "brand wholesale" mode; PEAK and 31st degree change to the international market; XTEP relies on the e-commerce platform and the income of children's products to increase breakthroughs, and China's trend relies on "sideline industry" to reverse the weakness.

　　 Anta PEAK and its medium-term performance recorded double-digit growth in revenue and earnings for the first half of the year. Anta owes to the "brand retail" transformation reform, that is, using new system to collect retail channel data to optimize operation.

After cleaning up the old inventory problem, Anta will reposition its electricity supplier channels, such as O2O (online to offline) synchronous operation mode, and integrate e-commerce into physical store goods. Anta chairman Ding Shizhong believes that the sporting goods market in the mainland is huge.

　　 PEAK

PEAK chose to "go out". In the first half of the year, overseas business turnover increased by 67.46% to 291 million yuan (RMB. The same below). The proportion increased to 22.57%, which is 14.83% higher than that of the same period last year. PEAK has decided to speed up the expansion of more two or three line overseas markets, aiming to increase overseas sales outlets from more than eighty to one hundred, with an export target of 10 billion yuan.

31st degree is also aimed at overseas markets. At the beginning of this year, it began to develop overseas business in its own way, instead of selling through distributors. Even though overseas sales accounted for 1.04% of the total turnover in the first half of the year, the company was exploring the possibility of expanding its business to Brazil and the United States. It also threatened to open the first Finland brand One Way self store in the second half of the year.

Six families motion In the first half of the year, the stock of goods stocks increased by the end of last year. XTEP's inventory reached 777 million yuan, an annual increase of 30.5%. The company said it was mainly due to the increase in finished products due to the continued recovery of the industry in the second half of the year. Chairman and chief executive officer Ding Shuibo (micro-blog) said that most stocks would be eliminated after the third quarter.

　　 The trend of "sideline" contributes greatly.

China's trend is the only return of six stocks, the first half of which has fallen by 17.34% year-on-year. Only 66 million 532 thousand yuan and 95 million 57 thousand yuan of revenue have been benefited from other benefits. The median profit has increased by about 5% a year. As of the end of June this year, the company had 6 billion 545 million yuan for sale and other financial assets, sitting on 1 billion 338 million yuan in cash and bank balances.

However, the stock market was not completely out of danger. Lining's losses in the first half expanded to about 585 million yuan, and the cash flow recorded a net outflow of 319 million yuan. Lining said that the transformation plan could not be completed in one to two years. It emphasized that at present, strategic investment should be made for future growth, such as optimizing sales channels, expanding self retailing network and reshaping marketing mode and supply chain system. In the first half of this year, the total revenue of its e-commerce business increased by 40%. In the future, it will focus on the relocation of the electricity supplier to the development of high profit and innovative businesses.

　　 Anta's best choice

The executive meeting of the State Council has accelerated the development of sports industry and promoted sports consumption. Brokerages generally believe that the revival of the mainland sports apparel industry is in sight. Anta continues to be popular in the industry, but the market is more concerned about the potential of China's trend, because it holds a small number of Alibaba group shares, along with Ali's upcoming stock market or favorable trend.

According to Bloomberg's analysts' rating, Anta's medium-term performance is brilliant. Many big companies have taken a different look at Anta and get the most "buy" rating. Goldman Sachs believes that although the mainland's accelerated development of sports industry has limited short-term impact on enterprises, it has a positive effect on the long-term development of the industry. The increase of sports events can provide more advertising and promotional opportunities to sports apparel brands, and maintain Anta as the industry's first choice.

Goldman Sachs has raised Anta's investment rating from "neutral" to "buying" earlier, and the target price has risen by more than 50% to 18.9 yuan from 12.4 yuan.

The trend valuation does not fully reflect the value of the company holding Ali shares. As early as one year, China moved $100 million to subscribe to Yunfeng fund founded by Ma Yun and indirectly invested in Ali 0.31%. In the interim results, the related investment has been increased to 2 billion 448 million yuan by fair value, but it is still conservative than market valuation.