News from First Textile Network on December 6 (reported by reporter martin): ANTA Sports Goods Co., Ltd. (hereinafter referred to as “ANTA Sports”) today (December On the 6th), a profit forecast was released at noon. The company’s profit attributable to shareholders in fiscal year 2019 (the following are all based on a comprehensive basis) will increase by no less than 45% year-on-year.
Data previously released by First Textile Network shows that as of the year ended December 31, 2018, Anta Sports achieved revenue of 24.100 billion yuan (the same unit below), a year-on-year increase of 44.4%; Gross profit was 12.687 billion yuan, a year-on-year increase of 54.0%; operating profit was 5.700 billion yuan, a year-on-year increase of 42.9%; profit attributable to shareholders was 4.103 billion yuan, a year-on-year increase of 32.9%; basic earnings per share was 152.82 cents; a final dividend of 28 cents per share was declared HK cents, including the interim dividend, a total dividend of 78 HK cents was paid for the year.
Anta Sports said at that time that the group’s three indicators of revenue, operating profit and profit attributable to shareholders not only hit new highs, but also maintained double-digit growth for five consecutive years. .
Anta Sports explained today that compared with the previous fiscal year, product sales of Anta and other brands maintained continued strong growth in fiscal 2019, resulting in an increase in revenue of more than 35% . At the same time, due to the increased contribution from the retail business and the relatively stable operating expense ratio (as a percentage of revenue), Anta Sports’ operating profit margin increased year-on-year in fiscal year 2019.
In the profit forecast, the losses of Anta Sports’ joint venture MascotJVCo (Cayman) Limited were not included in the statistics. If related losses are taken into account, Anta Sports predicts that the profit attributable to shareholders of the company in fiscal year 2019 will increase by no less than 30%.
Industry insiders said that the sports shoes and apparel market is one of the few industries in the apparel field that is both large-scale, high-growth, and highly concentrated. It is also a key link in the sports industry chain. In 2018, China The sportswear market size is 264.8 billion yuan, with CAGR=10% in the past ten years. China’s sports market has experienced three stages of development and is still booming to this day. Since taking the lead in completing the retail reform in the industry in 2012, to FILA’s rapid growth against the trend and becoming the group’s new growth pole, and then to the launch of its international acquisition of AmerSports, Anta’s forward-looking and action capabilities as a leader in the sports industry are obvious to all.
First Textile Network reporter noticed that the third quarter operating data released by Anta Sports recently showed that the retail sales of Anta’s main brand achieved mid-range growth of 10%-20%, and the retail sales of FILA brand achieved 50%. %-55% growth, and other brands (excluding AmerSports) achieved 30-35% growth.
Dongxing Securities analyst Liu Chang previously believed that the operating data of Anta Sports brands in the third quarter were good, showing the king of sports brands. In an environment where the entire apparel industry is under pressure, Anta Sports’ retail sales in the third quarter maintained a high growth rate: Anta’s main brand retail sales achieved mid-range growth of 10%-20%, an increase from the low double digits in the first half of the year ; The FILA brand faced a high base of over 90% growth in the third quarter of 2018, but still achieved a retail growth rate of over 50%. Looking at the third quarter alone, the inventory-to-sales ratio of Anta’s main brand remained between 4 and 5, and the inventory-to-sales ratio of FILA’s brand remained between 5 and 6, showing the healthy inventory status of the channel. The two major brands have maintained good retail discounts through long-term operations, with 72% off and 20% off respectively in the third quarter. ANTA Sports was the first to implement a retail-oriented development model. Among them, the FILA brand adopts a full direct operation model. The current average store sales is 800,000/month. In terms of channel ratio, it even surpasses the international first-line brands, showing Anta’s style as the king of sports brands.
In Liu Chang’s view, benefiting from the excellent and robust channel and supply chain management capabilities, the core highlights of Anta Sports lie in several aspects:
1. The brand is of high quality. The main ANTA sports brand has established a clear brand advantage among domestic brands through product improvement and emerging marketing promotion in recent years; the common feature of the acquired brands (including FILA) is that the brand quality is high but the operating conditions before the merger and acquisition were poor. Anta empowers the management of these brands and revitalizes them.
2. Product progress. ANTA Sports has invested heavily in research and development in the past few years. Sports shoes, especially basketball shoes, have made significant progress in independent technology. The recognition of KT series shoes has increased with each generation.
3. Channel supply chain barriers are getting deeper. ANTA Sports is the first in the industry to implement a retail-oriented development model, and its channel efficiency has obvious advantages in the industry. The company’s multi-brand strategy has accumulated a number of high-quality suppliers, and the company has also continued to invest in production and research and development, allowing the company to improve the quality and efficiency of the supply chain. Improvements have been made in all aspects.
Feng Chongguang, a researcher at CITIC Securities, also pointed out that Anta Sports’ brand line includes all income segments and different subcategories, from fashionable outdoor to leisure and fitness to sports fashion, and is committed to creating a full sports Ecosphere. FILA is a sports fashion brand that has grown rapidly in recent years, leading the popular sports fashion trend. The two brands Sprandi and DESCENTE focus on leisure, fitness and outdoor, and are accelerating their opening into the Chinese market. The KOLON brand fills the high-end fashion outdoor product line, while KINGKOW and Anta’s children’s product lines complement each other and complete the children’s sports layout. At present, the main brands Anta and FILA are the main profitable brands. Other sub-brands are accelerating to open up the Chinese market to adapt to the rapidly growing sports consumption. There is huge room for future growth. Anta, as a rising domestic brand, will have a larger market share. .
Dongxing Securities analyst Liu Chang predicts that the multi-brand strategy�� gives Anta Sports a broad space for development. It is expected that Anta Sports will achieve operating income of 30.824 billion yuan, 38.111 billion yuan, and 45.226 billion yuan from 2019 to 2021, and net profits attributable to the parent company will be 5.629 billion yuan, 7.218 billion yuan, and 8.671 billion yuan respectively.
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