National Strategy Helps Drive Sports Apparel Industry Boom

State Council No. 46 clearly pointed out that the total scale of sports industry will reach 5 trillion yuan by 2025, and the population of regular sports will reach 5 billion yuan.

Since then, rules and specific implementation policies have been introduced in various areas, which will ensure the rapid development of the sports industry in the next ten years.

As the most mature sub industry in the sports industry, the business model will benefit directly.

China's per capita sporting goods expenditure is only 18.04 US dollars, while the average level of developed countries is US $100, and that of Taiwan is US $57, which has huge market potential.

It is predicted that in the next 5 years, the annual compound growth rate of China's sports footwear industry will reach 8% (before 5%). By 2020, the scale of sports shoes and clothing industry will exceed 246 billion yuan, and the 100 billion market increments will be released urgently.

Changes in consumer behavior drive up volume and price, and substantially increase market size.

In recent years, changes in consumer dress habits have profoundly affected China.

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At the same time, with the continuous increase of public sports participation, consumer groups begin to enter the experiential consumption from the concept of consumption, thus driving the consumption of single and multi functional products.

At present, these changes are particularly evident in the second tier cities, so international brands take the lead.

We expect to expand to the mass market in the future, and local leading enterprises will benefit from it soon.

The industry concentration will continue to rise in the future.

Channel, brand and product three cart to create competitiveness of enterprises

The trend of the channel is flat structure and digitalization of management, focusing on retail efficiency and same store growth to drive the connotative development of terminal network.

At the same time, we should actively develop e-commerce and pursue synergy between online and offline.

Brand relies on high-quality Sponsorship Resources to reshape brand image, enhance brand value and seek consumer value identity.

Leading enterprises cut the market by multi brand strategy, rapidly establish barriers, and advance the layout of the draught.

Products focus on the development of R & D strength, enhance the proportion of functional products, especially sports shoes category as a breakthrough.

It also subverts traditional boundaries and works with technology companies to develop intelligent sports equipment.

Focus: Anta sports (buy), XTEP International (buy), Lining (overweight)

Anta sports (2020.HK): industry leader, brand advantage and scale effect are obvious, single focus, multi brand, all channel strategy performance is expected to grow steadily.

Shanghai and Hong Kong through the standard.

Buy rating, target price 25.36 HK dollars.

16-18 years EPS was 0.93/1.09/1.27 yuan respectively.

XTEP International (1368.HK): from fashion sports brand to sports

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The management strategy is clear and the execution is in place.

Market value, low elasticity of valuation and Shenzhen Hong Kong standard.

Buy rating, target price 5.35 HK dollars.

16-18 years EPS was 0.32/0.36/0.39 yuan respectively.

Lining (2331.HK): the inflection point is basically established, and the inventory channel situation has been greatly improved.

As a leading company in the past, the company still has significant brand advantages and abundant industry resources.

Increase the rating, the target price is HK $5.59.

16-18 years EPS was 0.13/0.26/0.37 yuan respectively.