The Hong Kong Stock Movement Brand Seems To Have Become The Core Asset Of QDII.

In the eyes of QDII, the sportswear of Hong Kong stocks seems to have become a core asset. In the first half of this year, the share prices of sportswear companies such as Lining, Anta, Shenzhou International and Hong Kong stocks rose all the way, and the share price rose to close to 130%, 50% and 30% respectively from the beginning of this year. The QDII fund's buying in the two quarter of this year has further played a role in adding fuel to the flames.

　　 Rapid expansion of industry demand

After several years of decline, the domestic brand Li Ning Co has risen vigorously, and its revenue has gone far beyond the market expectation. The former Chinese sportswear owner Lining has returned. By the end of July 19th, Li Ning Co's share price remained near HK $19.4, already creating a new high price since 2011, with a market value exceeding HK $44 billion.

There are also many sporting goods companies that are keeping strong momentum with Lining. For example, the market value of Anta sports has exceeded 150 billion Hong Kong dollars. Despite the fact that it has been hit by short selling agencies in recent times, Anta sports has been pushing up again in the last five trading days after a short adjustment, which is very close to the company's historical share price.

The strong performance of the main leading companies of sportswear reflects that the demand of the whole industry is growing rapidly. In fact, from the "hindsight" of some listed companies, it can be seen that sportswear field may be a new hot spot.

For example, the red bean stock of A shares announced in November last year that it intends to set up a sports company with a total investment of 100 million yuan with its controlling shareholders. In March of this year, BELLE international, which was privatized, plans to spin off its sportswear business. It is no wonder that institutional investors are starting to follow the layout.

According to statistics from consulting firm Ou Rui International, China's sports apparel market has been forced to rebound in the past 2014-2018 years, and the scale of sports apparel market has increased year by year, and its growth rate has been accelerating. In 2018, the size of China's sportswear market exceeded 40 billion dollars, an increase of 19.5% over the same period last year.

Judging from the growth rate, the average annual compound growth rate of China's sports apparel market in recent ten years is nearly 10%, significantly higher than that of other countries. In the same period, Britain's growth rate was 6.4%, the United States was 5.5%, and Japan was 2.6%. Although the scale of China's sports apparel market continues to increase, the proportion of sportswear in the overall apparel market is also rising. But in the developed countries, the per capita sports costumes are still low, and there will still be huge room for development in the future.

Market analysts believe that in the next five years, the compound growth rate of sports apparel industry is obviously better than that of other sub sectors, and it is still one of the best racetracks for clothing. It is estimated that China's sports apparel market will reach 65 billion 900 million US dollars in 2023, and the composite growth rate will exceed 10% in the next five years, and the market scale will account for over 16% of the total clothing proportion.

In the whole sportswear sector, Li Ning Co, seen as a fundamental reversal, is most favored by institutional investors, largely to a large extent after the adjustment of business strategy. According to the 2018 earnings report released by Lining in late 2019, the total revenue of 2018 was 10 billion 500 million yuan, an increase of 18.4% over the same period last year. This is the first time that Li Ning Co has broken billions of revenue. The net profit for the same period was 715 million, an increase of 38.8% over the same period last year.

　　 Sports brand transformed into QDII core assets?

The QDII fund's second quarter report revealed that the first time China's QDII fund was transferred to the core stock pool in the two quarter, and Li Ning Co became the tenth largest shareholder of the QDII fund, and the shares of Li Ning Co accounted for 2.68% of the net asset value of the fund.

Bozhou Asia Pacific, China silver global strategy, new economy of ICBC, China Greater China, new China and many other QDII also suddenly favored Shenzhou International, Anta, Lining and other companies in the second quarter. For example, Shenzhou Morgan global emerging market will include Shenzhou International in the 8th largest heavy position stock, and Bozhou Asia Pacific QDII listed Anta sports as its tenth largest warehouse stock, while the Bank of China Global Strategy listed Li Ning Co as the third largest warehouse stock and the Huaxia Greater China QDII fund to buy the seventh largest heavy warehouse stock of the fund.

In a sense, the uncertainty of technology stocks has led many QDII funds to "return to tradition" in stock selection. In the two quarter report, the QDII fund of Lining, a Chinese new era, said that taking into account the uncertainty of trade disputes and the potential threat of technological competition, it reduced some of its technology stocks and increased some consumer and domestic demand stocks.

Obviously, sportswear domestic enterprises in the second quarter became the target of QDII fund collectively. Based on the imagination of Anta and Lining growing from small companies to large market capitalization companies, some relatively small Chinese sportswear companies were also excavated by QDII fund. Take the QDII of the southern fund as an example, compared to the lack of sportswear in the first quarter, the southern Hongkong growth QDII fund began to buy the Hong Kong stock's sportswear company in the two quarter, which was bought in the two quarter for the first heavy warehouse stock of the QDII, the two quarter of XTEP was bought to fourth big heavy positions, and Anta sports was listed as the fifth largest margin in the two quarter.

Tianfeng securities research report that Li Ning Co as of June 30, 2019, the company expects revenue growth of more than 30%, is expected to reach more than 6 billion 100 million yuan; net profit is expected to achieve net profit of about 709 million yuan, compared to the same period in 18 years, an increase of about 440 million yuan, an increase of about 164% over the same period, to achieve rapid growth, the super expected. Research report pointed out that Lining's performance is in the stage of continuous recovery. It is estimated that the company's operating net interest rate will increase by 2pct every year in the next two years, and it will have greater room for improvement. Through the two fashion week in New York and Paris, Lining played the role of nostalgia and Chinese elements, making the "China Lining" movement fashion market rapidly, and making the national tide become the label of Chinese Lining sports fashion category.

The company not only excavated sportswear Brand Company, but also those of international sportswear subcontracting companies, such as Shenzhou International with a market value of more than 160 billion. Thanks to the rapid growth of orders from Nike and Adidas, Shenzhou International Business, as an OEM operator, has maintained rapid growth for many years. According to the financial bulletin issued by Shenzhou International, the company's operating income increased 15.8% to 20 billion 950 million yuan in 2018 compared with the same period last year, and its net profit increased 20.7% to 4 billion 540 million yuan over the same period last year. Gross profit margin increased by 0.2 percentage points from last year to 31.6%, gross profit increased 16.6% to 6 billion 614 million yuan over the same period last year, and achieved double-digit growth in revenue and net profit for sixth consecutive years. It also made Shenzhou International surpass Anta sports and became the largest sporting goods listed company in Hong Kong stock market.