Youthful And Fashion Sense Is Getting Better. Lining, Who Is Desperately Trying To Catch Up With Anta, Has Opened 142 Stores In The Three Quarter.

The Li Ning Co Ltd (hereinafter referred to as "Lining"), the first local sports brand leader, announced its announcement today (October 22nd) at the beginning of the same quarter last year (excluding Lining YOUNG). In the third quarter of 2019, the same store sales of the entire platform increased by 10%-20% over the same period last year. As far as channels are concerned, both retail (direct) channels and wholesale (franchised dealer) channels have achieved 10%-20% low growth, and the virtual store business of e-commerce has increased to 50%-60% in the same period.


On the basis of the tag price, the Lining brand product order of the second quarter of 2020, which was held by the franchisee in September 2019 (excluding Chinese Lining and Lining YOUNG), achieved a low 10%-20% growth over the same period last year.


In the third quarter of 2019, Lining sales point (excluding Lining YOUNG) achieved a low 30%-40% growth in the retail sales of the entire platform compared with the same period last year. In terms of channels, offline channels (including retail and wholesale) achieve high 20%-30% growth, with retail channels achieving 10%-20% mid growth and wholesale channels achieving 30%-40% mid growth; e-commerce virtual store business achieves 50%-60% low segment growth.


As of September 30, 2019, the number of sales outlets in the Chinese market (excluding Lining YOUNG) totaled 6564, representing a net increase of 142 from the end of last quarter, and a net increase of 220 so far this year. In the net sales of 220 outlets, the retail business decreased by 163, and the wholesale business increased by 383.


Tianfeng securities analyst Lv Ming believes that Li Ning Co's performance in the three quarter is faster than market expectations, and the growth of the electricity supplier channel has been accelerated. The overall performance has always maintained rapid growth. The continuous improvement of the net interest rate logic is the leading company with long-term growth logic. With the promotion of new products and the increase of discounts, it is expected that the gross profit margin of Li Ning Co will be increased by 1PCT every year in the next two years. In addition, under the background of strict control of expenses and management efficiency, it is expected that the net non interest rate level of Lining will be further improved in the future, while the development of Lining's YOUNG has been developing rapidly in recent years, and is expected to become a new growth point for the company in the future.


The market generally believed that Li Ning Co, with "Lining" as its sole brand, set up product lines such as Lining, China Lining, LNYOUNG and so on, to jointly build Lining's brand image. In the wake of the awakening of brand awareness in the domestic manufacturing industry, Lining, as the celebrity effect of athletes, overlay the hot spots caused by China Lining, providing a shortcut for the company to enhance its brand power. By the end of June, the company has opened 70 Lining stores in China, and is expected to reach 100-120 by the end of the year. Solid product and channel management, provide endorsement for the improvement of brand strength, help the company develop and become the world's top sports brand.


CITIC Securities expects that in the second half of, Li Ning Co's business revenue is expected to continue its growth in the first half of this year, and gross profit and expense rates will continue to improve. From the revenue side, we expect the overall revenue to maintain a relatively fast growth in the future. From the gross margin point of view, the gross profit margin of the wholesale market in the first half of this year will increase significantly. Considering the increase of discount rate and sales turnover rate, gross profit margin is expected to maintain steady growth. At the same time, Li Ning Co's investment in products and supply chain is getting better and better. With the continuous improvement of Li Ning Co's product capabilities, basketball, jogging, training, badminton and other sub categories have distinct functions, and the younger degree and fashion sense of products continue to improve.