Anta'S Market Value Was The First To Break 200 Billion, Due To The Average Store Efficiency Of Over 800 Thousand Of FILA'S Three Quarter Results.

Anta Sports Products Limited (hereinafter referred to as "Anta sports") latest business performance in the three quarter of 2019 October 16th. Data show that the retail sales of Anta brand products (calculated at retail value) in the third quarter of 2019 compared with the same period in 2018, and achieved a 10%-20% growth. In the same period, the retail sales of FILA brand (calculated at retail value) increased by 50%-55% compared with the same period in 2018. The retail sales of other brand products (calculated by retail value) increased by 30%-35% compared with the same period in 2018.


The announcement is only related to group Anta, FILA, DESCENTE, KOLONSPORT, SPRANDI and KINGKOW brand businesses, and does not include AmerSportsCorporation business.


According to the insiders, the sportswear and footwear market is one of the few apparel industries with large scale, high growth and high concentration. It is also a key link in the sports industry chain. In 2018, the scale of China's sportswear market was 264 billion 800 million yuan, and it was CAGR=10% in the past ten years. China's sports market has experienced three stages of development, and it continues to boom and grow.


Ju Xinghai, an analyst with Guosheng securities, said that according to the three quarter performance of Anta, the double digit growth of Anta's main brand terminal flow has been speeded up on the basis of low double-digit basis in the first half of this year. Judging from this: Anta has realized low double-digit growth in the first quarter, and the number of stores has been basically maintained stable. The growth rate of water consumption is mainly contributed by the growth of store efficiency. The growth rate of Anta children's line is 25% while the growth rate of Anta's electricity business is 30%-35%. Anta brand terminal discount level remained at around 28% off, the Treasury sales ratio remained at 4-5, and the overall terminal performance was healthy.


Ju Xinghai believes that the FILA brand continues the trend of high growth, and the growth rate of water in the three quarter is more than 50%, mainly from the expansion of new stores and the improvement of original store efficiency, and the ratio of sales to sales is maintained at a healthy level, while the terminal discount is maintained at around 20 percent off. In terms of channels:


On the offline side, the FILAClassic line is running up by 40%+, the average store efficiency is more than 800 thousand, the sub brand FILAFusion line is 2 times the same period, and the FILAKIDS line is increasing by 70%+. Sub brand growth momentum is good, and the company's early layout of the FILA professional sports line has also entered the testing state.


Online, FILA brand e-commerce sales momentum is good, to achieve 80%+ growth. Other brands, we estimate that Desanto, KOLON and other brand terminals still maintain a good momentum of growth, to achieve 30%-35% growth, of which Desanto has performed better, the first half of the year has entered a profitable State, and maintained a good growth momentum in the three quarter.


Feng Zhongguang, a researcher at CITIC Securities, said that the core competitiveness of sports products is the ability to develop and build products around functionality. In the past ten years, Anta has built up a deep barrier in its operation, which is reflected in the strong terminal retail management capability and supply chain control capability. In the past 2-3 years, Anta's products and brands have improved significantly. Specifically, function and appearance design should be promoted together. In recent years, high performance price ratio products with core technology are appearing frequently: in 2017, Alive-foam and KT3/ dad shoes appeared; in 2018, KT4 basketball shoes, A-FLASHFOAM, A-livezone new technology acclaimed, KT4/NASA/C202 highlights were frequent; 2019 and Hayward jointly launched the market. 2. The speed and depth and breadth of products are being strengthened in three aspects. Around the series of basketball / comprehensive training / running / life / football, to achieve "new month," the current annual clothing SKU3000+, shoes 2000+, at the same time, the price range is wider, matching the increasingly expanding brand new stores and regions. From Scola to Garnett, to Thompson and Hayward, the spokesmen are constantly upgrading, and derivative activities and products are becoming more and more abundant.


In Feng Zhongguang's view, the end of the sports brand will be: (1) the boundaries of the integrated brand price are getting more and more blurred, but the strong Heng Qiang; second, the demand for high-end, personalized and niche brands is increasing, and the niche brands still have larger room for growth.


As of today's press release tonight, Anta sports rose 4.42% to HK $75.65 / share, and its market value exceeded 200 billion for the first time, reaching HK $204 billion 353 million.