Favored By The Institutions, The Hong Kong Stock Market Is Strong.

In July 22nd, the Hong Kong stock market fell all day and the Hang Seng Index fell 1.37%. The sports apparel sector was strong against the market that day. At the close, Lining rose 2.89%, Anta sports rose 1.87%, XTEP international 1.03%. 361 degrees fell slightly, but the intraday rise was over 4%. The Hang Seng Consumer Goods Manufacturing index fell 0.66%, or only slightly larger than the Hang Seng raw materials industry, showing second in the Hang Seng 11 industry index.


Analysts pointed out that the two quarter of a number of overseas investment institutions will XTEP international, Anta, Lining and other companies included in the list of heavy positions, and a number of agencies recently published research report optimistic about the mainland sports apparel plate, I believe the leading stocks will still have a larger upward space in the future.


Sports apparel plate out of independent market


In the 105 stocks tracked by Hang Seng Consumer Goods Manufacturing index, Lining rose 2.89%, or second, on the 22 day. The shares rose by 6.15% in the intraday session, and the share price stood at HK $20.55, the highest since November 2010. Anta sports rose 1.87%, or fourth, rose to 4.44% in the intraday session, the highest price was HK $58.75, only a step away from the historical high of HK $59.40. XTEP international rose 1.03%, the highest intraday gain of 1.65%. 361, a small decline of 0.72%, intraday rise of over 4%.


The muddy water on the 22 day issued fifth short selling reports for Anta sports. According to the report, Anta sports's biggest "third party" supplier is a counterparty who is secretly controlled. Anta transfers the production cost from the production entity to the supplier. Anta issued a clarification notice at noon, saying that the board strongly denied the allegations in the report, saying the allegations were not accurate and misleading. Since muddy water released its first short report in July 7th, Anta sports shares fell 7.32% in July 8th alone, and its share price has rebounded since then. It has recovered 8 days of land lost and is 3.62% higher than the closing price of 55.3 Hong Kong dollars in July 7th.


Recently, a number of sports apparel boards have released results and forecasts. Lining issued a preliminary increase report in June 24th. He said that the first half of 2019 should account for a total profit of not less than 440 million yuan, and the operating profit increased by less than 240 million yuan over the same period last year. The growth rate is not less than 90%. Anta sports announced in July 11th that the retail sales of Anta's brand products increased by 10%-20% in the two quarter, while the other brand retail sales increased by 55%-60% compared to the same period last year. The two quarter sales figures released by XTEP international in July 12th showed that retail sales (including online and offline channels) increased by more than 20% over the same period last year.


Industry is rising considerably.


Market analysts believe that in 2023, China's sports apparel market will reach 65 billion 900 million dollars, the composite growth rate will exceed 10% in the next five years, and the market scale will account for over 16% of the total apparel market. There are obvious advantages in the leading stocks of the industry.


According to statistics from consulting firm Ou Rui International, China's sports apparel market has been increasing year by year in -2018 2014, and its growth rate has been accelerating. In 2018, the market scale has exceeded 40 billion US dollars, an increase of 19.5% over the same period last year. Although the proportion of sportswear in the overall clothing market is also rising, the per capita sports apparel consumption in the developed countries is still low, and there will still be huge room for development in the future.


According to the second quarter report disclosed by the QDII fund, the first Chinese Li Ning Co fund was transferred to the core stock pool by Li Ning Co, and many QDII funds such as XTEP, Anta, and Lining were listed in the top ten heavily stock positions in the Asia Pacific, the Bank of China global strategy, the ICBC new economy, Huaxia Greater China, and China's new era. The strategy of the Bank of China has listed Li Ning Co as the third largest shareholder, and the China Great China QDII fund has bought Lining to the seventh largest share of the fund. In the two quarter report, China's new era said that, taking into account the uncertainties of the external factors, some of the technology stocks were reduced, and some consumer and domestic demand stocks were increased.


For the industry's leading stocks, CITIC Securities recently pointed out that Anta sports product R & D capability has been significantly improved, and the product performance was brilliant from 2017 to 2019. The agency pointed out that Anta sports has built up a deep barrier in operation in the past ten years, and in the recent two or three years, the product and brand integrity has been significantly improved and improved. At the same time, short selling agencies are skeptical, optimistic about the company's absolute strength and long-term steady growth, maintaining the "buy" rating.


Tiger Securities pointed out that, compared with Anta sports, Lining pays more attention to endogenous growth, and its growth is more based on its own brand influence, especially the rising tide of domestic goods. At present, Lining has the same store growth rate continuously improved, inventory turnover continuously rising, new product proportion rising, operation efficiency rising and electric business operation scale increasing and so on. As long as we take advantage of these advantages, Lining's profit margin will still have much room for improvement.