The Short Selling Rating Anta Intends To Raise 778 Million Of The Stock Raising, The Institution: The Reasonable Value Is 65.8 Hong Kong Dollars.

Recently, SorenAandahl, founder of short selling organization BlueOrca, put forward the proposal to sell Anta Sports Products Limited (hereinafter referred to as Anta sports) at the forum, which he thought was the largest or 34% decline.

The Anta Sports Products Limited (hereinafter referred to as "Anta sports") issued a clarification notice in May 31st to deny the short selling report: the board strongly denied the speculation in the report and thought the speculation was not accurate and misleading.

Anta sports said there was no comment on BlueOrca's empty talk.

Reporters noted that Anta sports also announced today that the company intends to HK $49.11 per share (the same below) to AnameredInvestmentsInc.

The issuance of 15 million 842 thousand shares is equivalent to the expansion of 0.59% capital stock.

The total amount and net amount of the proceeds is 778 million yuan. The company intends to use the net proceeds to be used for working capital and general business purposes.

The announcement shows that the subscriber is DennisJ.

Wilson100% has an investment tool, Wilson is HoldItAllInc.

Chairman, and a pioneer for vertical retailing and technical clothing.

According to the insiders, as the leader of local sports shoes and clothing, Anta sports group takes pride in the market of Chinese sports shoes and clothing, with its 20 billion + income (2018E) and 10%+ market share second only to Nike/Adidas.

Under the 4 strategic guidelines of single focus (Sports Track), multi brand (ANTA/FILA/DESCENTE, etc.), and all channels (11316 shops covering street shops / shopping malls / electricity providers, etc.), entering the world has become an inevitable choice for Anta's long-term development.

AmerSports owns top tier brands and global distribution network such as Arcteryx/Salomon/Wilson/Suunto, which is highly matched with its strategic direction, vision and local advantages in its acquisition of Anta.

Public information shows that Anta sports as an outstanding sports shoes and apparel company, accompanied by China's sports industry for decades, the company listed on the HKEx in 2007.

Over the past ten years, the company realized its operating income and net profit attributable to parent company CAGR18%/19% from 2007 to 2017.

With the company's revenue and performance growth, the market value of nearly 100 billion Hong Kong dollars, among the global sporting goods management company's market capitalization of four.

At present, the company owns many brands including ANTA (main brand), FILA (Italy), DESCENTE (Japan), KOLON (Korea), Sprandi (UK) and KINGKOW.

Some agencies said that in 2018, Anta's sports revenue grew by 44.4% to 24 billion 100 million yuan, and net profit increased 34% to 4 billion 230 million yuan over the same period, which is 3%/10% higher than the consensus forecast of the market.

This is mainly due to several aspects: (1) the retail sales growth of Anta's main brand is stable (about 15%); (2) other brands (especially FILA) retail sales increased by >80% compared to the same period last year.

The overall operating profit margin remained stable at 23.7% (2017: 23.9%), reflecting the fact that although the recently acquired brands such as KOLONSPORTS and KINGKOW were somewhat dragged down, the cost of controlling the company was still appropriate.

And Hu Xiangyu, an analyst at Guang - FA securities, in the middle of this year in the middle of this year, in the middle of April, that Anta sports in 2009 after the acquisition of FILA brand agent, Anta successfully repositioning the brand, and gradually turn to profit.

In the past five years, FILA's business revenue has increased rapidly, and its proportion of Anta's total revenue has also increased year by year.

In 2018, the sales revenue of FILA has reached 35% of the group's revenue, which is an important driving factor for the company's growth.

Reporters learned that as of December 31, 2018, the number of FILA stores in mainland China, Hongkong, Macao and Singapore was 1652 (including FILAKIDS and FILAFUSION).

In the second half of 2018, the number of FILA shops increased by 404.

The number of stores increased in the second half of the year. In Hu Xiangyu's view, this is mainly due to the rapid growth of FILAKIDS and FILAFUSION's two largest sub series.

But compared with the international sports brands of the same grade, FILA still has considerable channels to expand its space.

As of 2018, the number of American sports leisure brand Skech stores in China was about 3000, and the number of famous international running shoes brand new brun in China has exceeded 2500.

The two leading sports brands, Nike and Adi, have more than 1 stores in China.

On the whole, Hu Xiangyu believes that Anta sports 2019/20 revenue growth will mainly come from the main brand Anta and FILA brand's revenue growth, the main brand Anta's revenue growth will continue to come from the same store sales growth driven by offline store upgrade, the sales growth of e-commerce channels and the growth of Anta children's clothing.

FILA brand sales will continue to maintain a high growth momentum in 2019.

Observation, FILA brand still has considerable store expansion space.

At the same time, more than 70% of the 566 new stores in the FILA brand in 2018 were opened in the second half of the year, and these stores will boost sales of FILA brand in 2019 after half a year's business climbing.

Hu Xiangyu said that since 2012, Anta sports's dynamic price earnings ratio (based on Bloomberg's earnings forecast) has been on the rise of the valuation center, which reflects two factors. First, the sports apparel industry has gradually recovered from the bottom of the industry cycle in 2012. The upgrading of the industry's prosperity has helped the company's valuation center improve; the two city companies have successfully turned the FILA brand into profit and become an important driving factor for the company's performance growth, making the company the only listed company in the domestic sports brand that has proved its own multi brand operation capability.

Multi brand operation capability has enhanced the company's performance growth space, and the market has given the company management capability to evaluate premium.

Hu Xiangyu judged that Anta sports valuation center will continue to improve, this is because: first, the boom of the sports apparel industry will remain at a higher level, and the industry concentration will continue to improve, and the company will benefit as a leader; two, the company's acquisition of AmerSports brings more head sports and outdoor brands.

And the adjustment of outdoor industry is coming to an end.

The company will benefit from the recovery of the outdoor industry through the development of AmerSports's brand in China, and further enhance its performance growth space.

From this point of view, Anta sports valuation center will continue to rise to 23.0x.

According to this calculation, the reasonable value of Anta sports stock is expected to be 65.8 Hong Kong dollars, corresponding to P/E 23.0x in 2020.

As of today's press release this evening, Anta sports shares reported HK $48, or 2.24%.