XTEP, Anta And Other Domestic Sports Brands Are Short Of Truth.

So what is the truth about this so-called "short sale"?

"Hong Kong shares listed on the sports market value of two days evaporated X billion billion Hong Kong dollars"? The World Cup began on Friday, such a hot news network, so that the world cup to see the circle of brothers failed to watch the ball, attracted attention.

Recently, there was a sudden news that there were short selling of domestic sports brands in the market, so there were many eye catching news, such as "Hong Kong stock market sports brand market value evaporated X two billion Hong Kong dollars" and so on.

From the actual situation, similar stock market information is not worth a while, the corresponding short report is even more questionable.

Sina Financial reported that GMT, a short selling agency, issued a report in June 12th to question the financial fraud of domestic sports brands.

The short report said that since 2005, 9 of the 16 Chinese sporting goods companies listed in the market have been proved to be cheaters, all from Fujian. Unfortunately, the other 7 companies, including Anta (02020.HK), XTEP (01368.HK) and 01361.HK (360 degree), have many similar characteristics with those already proven to be cheaters.

GMT suggests selling or evading these companies.

The short report focused on Anta, which said the company's operating profit in the past 17 years was the third highest in history.

GMT claims that Anta's profitability is unbelievable, and that Anta is either the best sporting goods company in the world or a Swindlers Company. GMT said he prefers Anta to be a Swindlers Company and thinks Anta is worth only HK $10.

GMT also said that even though Anta is the best sporting goods company in the world, Anta's 34 times valuation is also very high.

The report also said that Yuyuan is relatively clean. Lining has increased the revenue since 2011 because of some violations in Baosheng accounting. China's trend has inflated profits since 2011, and the profit has increased by 316 degrees. XTEP has manipulated profits.

From the point of view of content, it seems that sports brands in China are useless.

The core of the report focuses on the financial statements of sports brands. The core of Anta's query is that Anta's profit margins can't be higher than foreign counterparts.

Judging from these contents, GMT's judgment is based on financial statements and previous cases, and there is no more substantial evidence.

As to why Anta's profit margin is higher than that of Nike and other international giants, this question is really not worth answering.

In 2017, Anta's gross margin reached 49.37%, while Nike's gross margin was only 44.60%. Why? Because of lower cost, otherwise, how could Shenzhou international market with a market value of HK $150 billion?

Shenzhou International, whose market value will break through HK $150 billion, is not short.

In addition to subcontracting, Nike adopts distributor mode, while Chinese sports brand has shifted to a more flexible direct mode after inventory crisis.

In addition, Anta is 34 times overvalued, but Shenzhou International Valuation is more than 33 times. Tencent's P / E ratio has reached 45 times.

Unlike the Hong Kong stock market, the Hong Kong stock market is different from the Hong Kong stock market, even if there are 88 times the market value of the A after the two limit.

In the past two days, Anta fell 12.25%, XTEP fell 6.64%, 331 degrees fell 8.02%, and Lining fell 6.87%.

The companies have issued clarification statements, and brokerages have also questioned the impracticality of GMT's short report.

Although Anta is not the best sports brand in the world, China is definitely the best sports brand.

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As for the decline of Anta XTEP's share price, it may have the effect of short report, but it is not the most important influence.

First of all, the decline in share prices of Hong Kong stock brands such as Anta, XTEP and Lining is not an example, but the overall market environment itself has problems.

In the wake of the downturn in the market and the anticipation and implementation of the Fed's rate hike, both Hong Kong stocks and A shares fell sharply in June 13th, 14 and 15.

Hongkong's Hang Seng Index fell 1.22%, 0.93% and 0.43% respectively, while the Shanghai stock index of A shares fell 0.97%, 0.18% and 0.73%.

Second, the decline in the share price of sports brands is based on the upsurge in the previous period.

This year, Anta's stock price has surged, the highest cumulative increase of 41.34%, and its market value once exceeded 130 billion Hong Kong dollars.

In the case of a continuous surge, the rise of Anta's share price has been under pressure. It has not been able to break through for two consecutive months. Lining and Anta have similar market capitalization to HK $20 billion, but they have not been able to break through for two consecutive months.

If we look at the lowest share price in February, Lining has the highest increase of 82.30% this year. XTEP is the best sports brand this year, with the highest price increase of 111.36%, and its market value exceeded 10 billion Hong Kong dollars in May this year, and its total market value is 12 billion 270 million.

In April 2018, when the annual earnings report was released in 2017, the chart made by the ecosphere was produced.

Again, the collapse of these sports brands may be related to the world cup.

In June 14th, the opening of the 2018 World Cup in Russia also led to the promotion of sports industry concept stocks.

This situation is more obvious in the A-share market. On the 14 and 15 days, Lehman shares and the birds in the world kept down for two days. Sanfo outdoor was on the 15 day limit. Contemporary Ming Cheng, Xing Hui entertainment, Anne shares, Mu Gao Di, Impulse, Lisheng racers and so on dropped 15 over the 15 day.

If the market value is calculated, although these companies do not have the weight of Anta, they will only lose 3 billion 260 million yuan in the two days.

Lehman's market capitalization was smaller, but it also fell by 1/5.

Sports industry stocks slumped in June 15th

Finally, the biggest problem with GMT's short campaign brand is its unfamiliarity with the Chinese market and the sports brand in China. It is very one-sided to see a company solely on the basis of financial statements. Just as it is difficult for Chinese investors to understand the details of a foreign market, it is difficult for foreign investors or investment banks to clearly see the operation of Chinese enterprises.

From the comparison between the recent muddy water and the future, we will find that there is a certain gap between GMT and muddy water.

Muddy water shortens the future. It's not just a financial statement, but a deeper investigation.

Although muddy water is better than GMT, after all, the boss claimed to be China's leading player, but he still did not find a final word to kill the real evidence of the future.

Therefore, when the international shorts are short of Chinese enterprises, it is better to know more about the situation. It is better to have a field trip. After all, domestic brokerages should also do several research in the field.

This time, GMT's short selling of Anta XTEP and so on, though of little significance, also means that Chinese sports brand has attracted the attention of foreign investors.

To a certain extent, being short is the necessary stage for the movement brand to internationalize. After all, the Alibaba who landed on the US stock market has gone through many short selling. As for the future stocks, it is hard to avoid being short.