Lining Anta'S Medium-Term Results Are Pretty, But The Two Share Prices Are Different.

Recently, Lining, a sports brand listed in Hong Kong,

Sports released the interim results in the first half of the year, but the market showed a completely opposite reaction.

In the first half of 2018, Lining reported that the total revenue of the company in the first half of the year was 4 billion 713 million yuan (the same below), an increase of 17.9% over the same period last year, and net profit of 269 million yuan, an increase of 42% over the same period last year.

The company's main business is divided into three parts, namely footwear, clothing, equipment and accessories.

In the first half of this year, the total income of footwear in the first half of the year was 2 billion 190 million yuan, an increase of 8.6% over the previous year, accounting for 46.5% of total revenue, while the total income in 2017 was 50.5%.

Clothing revenue in the first half of 2 billion 299 million yuan, an increase of 30.7% over the same period, jumped more than footwear, become the largest proportion of the total income plate.

After the announcement,

On the 13 day, the stock price rose 4.68%, closing at HK $8.5, rising again 1.18% today and its share price was HK $8.6.

After the release of Anta sports interim results, the market was bearish. In the first half of the year, Anta group's revenue was 10 billion 550 million yuan, the growth rate was 44.1%.

Anta overall performance in the first half is better, revenue and gross margin growth has hit a new high in recent years.

But it is worth noticing that the sales cost rate of the company has increased significantly, and the sales cost in the first half of 2018 has reached 26.2%, the highest in history, the increase of 1.8 percentage points, up 5.4 percentage points from the same period last year.

Despite the increase in gross profit margin, the increase in the rate of sales expenses was offset by a 35.18% increase in net profit in the first half of 2018 and a net profit margin of 18.97%, down 1.3 percentage points from the same period last year.

On the top of the operation, the inventory turnover days of the company increased significantly. The first half increased 15 days to 83 days compared with the same period last year.

A market person told sina finance,

Not only depends on inventory, but also the inventory turnover days, so the performance of Anta is not easy to satisfy the market.

In addition, the company's accounts receivable also increased significantly.

This situation is similar to that in the second half of 2017. In the second half of 2017, the company's revenue growth also hit a new high, but inventories and receivables increased considerably.

As the working capital expenditure increased, the free cash flow of the company decreased significantly.

Feng Hongyuan, analyst at the financial asset management division, said Anta's performance looks very good. But in many industry analysts, Anta's cash flow situation is not ideal this year. According to Anta's medium-term earnings report, the net cash flow of Anta in the first half of this year was 1 billion 476 million yuan, down 28% compared to the same period last year.

In terms of share prices, Anta sports once surged 4% after opening in the afternoon, but then turned to a decline.

At the close, the stock price was HK $36.5, or 10.10%.

According to the earnings data, during the reporting period, the total number of Lining sales points (including Lining YOUNG sales point) totaled 6898, representing a net increase of 168 over the previous quarter, and a net increase of 463 so far this year.

According to the data from Anta, it is estimated that by the end of this year, the total size of Anta's stores in the mainland will reach 9700 -9800 homes.

And the total number of shops in Anta has exceeded 10000.

In addition, Anta has also been involved in the "plagiarism" whirlpool recently. A number of products are alleged to be infringed. According to media reports, the exclusive claim of the agent lawyer of Hua Hua brand design service (Shenzhen) Co., Ltd. (hereinafter referred to as "Hua Hua company") is that Anta, a sports giant, is suspected to have plagiarized the children's schoolbag with various designs and patent protection of Hua Hua company.

In August 14th, Zheng Jie, CEO of Anta group, responded to the interim results meeting in Hongkong, saying that the incident is still under investigation. At present, it is only a one-sided statement. We respect the evidence and statements of the other side and are communicating through the legal, public relations departments and the other side.

Zheng Jie added, I think it's an individual event. We respect originality.

In June this year, it also fell into a big storm.

In mid 6 2018, the short selling agency GMT issued a research report, pointing to the suspicion that many Chinese sporting goods brands (Sports stocks) had financial fraud, and directed Anta to question its "high" profit margin, saying its stock price was only 10 yuan.

At today's Anta performance meeting, the company responded to short selling. The growth in performance over the years is the best counter attack to prove that it is unreasonable to make a simple comparison between the global business and the gross margin of China's business.