Lining Accelerated To Catch Up With Anta. In The Three Quarter, He Opened 142 Stores, And Became Younger And More Fashionable.

The local sports brand leader Li Ning Co Ltd (hereinafter referred to as "Lining") issued a notice today (October 22nd) to calculate the Lining sales point (excluding Lining YOUNG), which has been put into operation at the beginning of the same quarter last year. In the third quarter of 2019, the same store sales and sales of the whole 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 expected to exceed market expectations. The growth of e-commerce channels is accelerating, and 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 upgrading of new products and the increase of discounts, it is estimated that the gross profit margin of Li Ning Co will be raised every year in the next two years. Rose 1PCT; in addition, in the context of strict control of the company's cost and management efficiency, it is expected that Lining's future net interest rate will be further improved, while Li Ning Co children's clothing business Lining YOUNG has been developing rapidly in recent years, and is expected to become a new growth point of the company's future. In addition, we need to see that the sports and fashion market has a strong response and is expected to form a Chinese plum. Ningda category promotes the further improvement of Lining's performance.

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 wholesale in the first half of this year has increased 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.