Hua Shang Introduction
Since the beginning of this year, the performance of listed sportswear companies in the capital market has been particularly eye-catching. The head effect of consumer brands has become more and more obvious. However, the market is also "hot", which is the overall situation of the current sportswear industry.
Anta Sports' market value exceeded 200 billion Hong Kong dollars
On October 16, ANTA Sports released the latest operational performance announcement for the third quarter of 2019. In the third quarter of 2019, the retail sales of Anta brand products (by retail value) recorded a mid-term growth of 10%-20% compared with the same period in 2018. The retail sales of FILA branded products (calculated by retail value) increased by 50%-55% compared with the same period of 2018. The retail sales of other branded products (calculated by retail value) was 30% compared with the same period of 2018- 35% growth. The announcement reminds that the disclosure data is only related to the Group's Anta FILA, DESCENTE, KOLON SPORT, SPRANDI and KINGKOW brand businesses, and does not include the Amer Sports Corporation business.
Anta Sports' 2019 semi-annual report shows that the company achieved operating income of 14.811 billion yuan in the first half of the year, up 40.3% year-on-year; operating profit was 4.257 billion yuan, up 58.4% year-on-year; profit attributable to shareholders was 2.48 billion yuan, up 27.7% year-on-year. . According to the company, all three of the above indicators are at a record high, and have maintained nearly 20% growth for six consecutive years. The semi-annual report shows that the Group's revenue in the first half of the year mainly came from the core segment Anta, which accounted for 51.2% of the overall revenue, up 18.3% year-on-year, mainly due to the increase in market awareness of Anta brand and its products, which led to the growth of Anta brand revenue, and Anta's children's income has increased significantly. The FILA segment has accounted for 44.1% of the Group's overall revenue, an increase of 79.9% year-on-year, mainly due to the increased market awareness of the FILA brand and its products, the strong performance of the retail business, the increase in physical stores and the improvement in store efficiency, and e-commerce. development of.
Anta Sports has been on the rise since the beginning of this year. The market value of the company has exceeded 200 billion Hong Kong dollars, setting a new record. As of the close of October 18, 2019, Anta Sports reported a stock price of 73.15 Hong Kong dollars, with a market value of 197.6 billion Hong Kong dollars.
Li Ning has risen more than 200% since this year
Anta Sports' market capitalization is far ahead in apparel listed companies, and Li Ning has become the most popular sportswear listed company this year. Since the beginning of the year, Li Ning's share price has risen more than 200%. As of the close of October 18, 2019, Li Ning's share price was HK$26.70 with a market capitalization of HK$55.759 billion.
Li Ning's 2019 semi-annual report showed that the company's revenue in the first half of the year reached 6.255 billion yuan, an increase of 32.7% over the same period in 2018. Li Ning said that the reason for the sharp increase in revenue was the large increase in all channels. The franchisees have increased their confidence in the Li Ning brand. The Group transferred some of its original self-operated stores to dealers and agreed to open large stores and fashion stores, which enabled the franchisees to record a 40% increase in revenue. As a result of the transfer of dealers, the growth of direct sales revenue has slowed slightly, but there is still a growth rate of more than 10%; and the e-commerce channel has developed rapidly in recent years, with an increase in revenue, recording a 30% increase.
The semi-annual report showed that Li Ning's net profit attributable to equity holders in the first half of the year was 795 million yuan, up 196.0% over the same period, and the company's net profit margin increased from 5.7% to 12.7%. Li Ning said that the Group's sales revenue and gross profit margin both increased, the expense ratio decreased, other income and other income increased and the share of investment profit recorded by the equity method increased significantly. Therefore, the comprehensive profit index for the first half of the year improved significantly. Li Ning said that in the first half of the year, the company continued to focus on products, channels and retail operations and supply chain management, and promoted the strategy of “single brand, multi-category and multi-channel”, emphasizing the professional sports attributes of products and integrating professional sports with trend culture. Continue to focus on five categories including basketball, running, training, badminton and sports fashion.
Xtep International's retail sales growth slowed in September
Compared with ANTA Sports and Li Ning, the recent performance and stock price performance of another sportswear brand, Xtep International, appears to be “smooth”. On October 17, Xtep International announced the third quarter of 2019 China Mainland business operation announcement, the announcement shows that Xtep International's third quarter of 2019 same-store sales (by retail value) increased by about 10% year-on-year, retail sales (including online And offline channels) increased by about 20% year-on-year, retail discounts were 25 percent to 70%, and retail inventory turnover was about four months.
According to the announcement, the sales growth of Xtep brand products in July and August 2019 showed a steady growth compared with the first half of the year, and the sales growth of apparel products was better than that of footwear products. The slowdown in retail sales growth in September 2019 was mainly due to the high sales base and the warm autumn caused by climate anomalies in northern China. The Xtep brand retail store has launched its autumn and winter product line, and the warm weather has affected its sales performance. However, the recent sales growth momentum has resumed, and sales in the first two weeks of October 2019 have returned to their previous levels of growth.
Xtep International's semi-annual report for 2019 showed that the company achieved revenue of 3.357 billion yuan in the first half of the year, a year-on-year increase of 23.0%, and profit attributable to shareholders was 463 million yuan, a year-on-year increase of 23.4%. Xtep International said that revenue growth was due to product mix and acceptance (especially clothing products), resulting in higher sales rates and increased replenishment orders from general agents; second, supplements to healthier inventory levels Demand; third, sales performance of downstream retail stores increased due to store upgrades and retail network optimization.
As of the close of October 18, 2019, Xtep International's share price was 4.69 Hong Kong dollars, up 15.77% from the beginning of the year, with a market value of 10.582 billion Hong Kong dollars.
Since the listing, the stock price has risen by more than 20%.
On October 10, 2019, Belle International Holdings Co., Ltd., a subsidiary of Belle International, was officially listed on the Hong Kong Stock Exchange with an issue price of HK$8.5. As of the close of the day, the company's share price rose 8.82%, with a total market capitalization of 57.4 billion Hong Kong dollars. Since its listing, the company's share price has generally shown an upward trend. As of October 18, 2019, the company's share price was reported at HK$10.28 and its market value was HK$57.733 billion.
The company is a sports business line split from Belle International, a Hong Kong-listed footwear listed company. The prospectus shows that it has a sports retail and service platform in China. As of September 17, 2019, the company has 8372 direct-operated stores. And 1,103 downstream retailers operating 1,957 physical stores, including two online and downstream retailers that each operate their online retail platform.
According to the prospectus, according to Frost & Sullivan, the company is China's largest sportswear and apparel retailer in terms of retail sales. In 2018, the market share of the Chinese sportswear and apparel retail market was 15.9%. At the end of 2018, the company's direct stores were the most extensive retail network of sports shoes and apparel products in China. The company is currently Nike's second largest retail partner and customer worldwide, and is the world's largest retail partner and customer of Adidas. The company also cooperates with the brands of Hummer, Converse and Weifu Group (ie, Fans, The North Face and Tim Buren), Reebok, Arthurs, Ghosts and SKECHERS.
According to the prospectus, the revenue from the increase of RMB 21.169 billion for the year ended February 28, 2017 to RMB 32.564 billion for the year ended February 28, 2019, with a compound annual growth rate of 22.5%; net profit by For the year ended February 28, 2017, RMB 1.317 billion was increased to RMB 2.20 billion for the year ended February 28, 2019, with a compound annual growth rate of 29.2%.
Baosheng International's performance is eye-catching
As another large-scale sports and footwear retail listed company, Baosheng International achieved double-income growth in revenue in the first half of the year. The stock price has risen more than 80% since the beginning of the year, and the market value is approaching a record high. As of the close of October 18, 2019, Baosheng International's share price was HK$2.75, with a market capitalization of HK$13.294 billion.
On October 14, Baosheng International announced that the company's net operating income in September was 2.396 billion yuan, a year-on-year increase of 15.09%. The net consolidated operating income for the first nine months of this year was 19.997 billion yuan, a year-on-year increase of 20.19%. Baosheng International's 2019 semi-annual report shows that the company's revenue in the first half of the year was 13.372 billion yuan, a year-on-year increase of 19.4%. The profit attributable to owners of the company was 427 million yuan, a year-on-year increase of 39.3%. According to Baosheng International, the growth is attributed to China's sports and leisure trends and the participation rate of sports activities, the continuous development of the Group's retail business, and the rapid growth of online business.
According to the semi-annual report, as of the end of June 2019, Baosheng International had 5,895 direct retail stores and 3,756 franchised stores. Baosheng International said that the rise in consumer spending coupled with the accelerated development of sports and leisure trends, such as the increasing concern of the Chinese people for fitness and health, the increased participation rate of sports activities, the increase in the subscription volume of sports services, and the support of government policies, have enabled the Group to China is optimistic that demand for sportswear and sports services will continue to grow substantially. The Group will continue to focus on opening and upgrading physical stores that offer a rich experience and enhance online channels, while planning to open new large-scale stores that better integrate in-store sports services and network elements with online products and other sales channels.
Yue Yuen Group's share price has fallen by nearly 10% since the beginning of the year
As the parent company of Baosheng International, Yueyuan Group, a sportswear and apparel manufacturing company, is not as good as Baosheng International in terms of performance and stock price performance. Yue Yuen Group announced on October 14 that the net operating income of the company for the month of September 2019 (that is equivalent to total sales minus sales discounts and sales returns) was US$ 823 million, down 1.9% year-on-year; the company was as of 2019 The net accumulated operating income for the nine months ended September 30 was $7.520 billion, an increase of 5.13% year-on-year.
Yueyuan Group's semi-annual report for 2019 showed that the company's revenue for the six months ended June 30, 2019 was US$5.071 billion, an increase of 6.32% year-on-year. The profit attributable to owners of the company was US$166 million, an increase of 10.52% year-on-year. Yue Yuen Group said that in the first half of the year, the Group faced various kinds of adversity, especially the US threatened to impose tariffs on shoes made in China, and several customers changed their purchasing strategies under the uncertainty of global trade friction, which accelerated the Group's adjustment in the first half of the year. The pace of capacity allocation in the country. The Group also continues to face the business impact and challenges caused by the more flexible procurement methods and the changes in consumer preferences. These have led to more volatile monthly orders, unstable capacity utilization and lower production efficiency in the first half of the year. The product portfolio is more complex and changeable. In order to meet these challenges and strengthen the Group's long-term position, the Group continued to accelerate the implementation of automated production and improve operational efficiency through the reorganization process.
According to the semi-annual report, compared with the same period of last year, the gross profit margin of Yue Yuen Group's manufacturing business decreased by 0.7 percentage points to 18.1%. According to the group, the decline in gross profit margin of the manufacturing business was mainly due to the current “retro trend” trend leading to more complex product processes and the migration of production facilities between different countries. The Group's challenges in investing in optimized manufacturing operations to achieve sustainable growth, including increased levels of automation and the introduction of SAP's enterprise resource planning system, have led to temporary inefficiencies in some production facilities.
As of the close of October 18, 2019, Yue Yuen Group's share price was reported at 21.40 Hong Kong dollars, down 8.35% from the beginning of the year, with a market value of 31.137 billion Hong Kong dollars.
Hua Shang Conclusion: There is differentiation in the "hot" sportswear market
Since the beginning of this year, the performance of listed sportswear companies in the capital market has been quite impressive. The market value of Anta Sports has exceeded 200 billion Hong Kong dollars for the first time. Li Ning's share price has doubled since the beginning of the year. Since the listing, the stock price has risen by more than 20%. The stock price of Baosheng International has increased by more than 80% since the beginning of the year, and the market value is approaching a record high. However, as its parent company, Yue Yuen Group's share price has fallen by nearly 10% since the beginning of the year.
These listed sportswear listed companies can be regarded as the head enterprises with large revenues. Broadly speaking, Anta Sports and Li Ning, as the head enterprises of domestic sportswear brands, can be said to be the strongest in their stock price performance. Qibo and Baosheng International, as international sportswear retailers, are not as good as domestic sports. The clothing brand's head enterprise is as strong as it is, but its performance is also quite bright. The Yueyuan Group, as the foundry manufacturer of international sportswear, is most affected by the external market environment. The stock price performance this year is quite weak.
Overall, sportswear is a sub-sector that is the most eye-catching performance of the apparel industry this year. The performance of some head enterprises in the capital market is even called “hot”. However, from the inside of the industry, we can see that the domestic sportswear brand is on the rise, the international sportswear retailer market performance is also quite good, and the international sportswear manufacturers are in a slightly inferior position. In general, the consumption end of the sportswear industry is better than the manufacturing end, and the head effect of consumer brands is becoming more and more obvious. The market is “hot” and is the overall situation of the current sportswear industry.
