China's Sports Brand Continues To Improve And Its Future Development Prospects Are Promising.

The development prospect of China's sports apparel industry is constantly optimistic.

As of August 26th, the semi annual report of Anta sports, Lining and XTEP international, known as the "three carriages" of domestic sports costumes. The net profit of three leading companies has maintained an increase of more than 20%. The development prospect of sports apparel industry is constantly optimistic.

The performance of many brands is good, and the stock price is even higher.

Dong Wu pointed out that sportswear is the best product segment in the brand clothing industry. The change of lifestyle and consumption habits catalyzes the rapid growth of this subdivision track. "The continuous growth capability of the track, especially in the Chinese market, is amazing." In the first half of this year, the performance of the three sports giants in China, Anta sports, Lining and XTEP international, once again illustrates this point.

In the first half of 2019, Anta sports achieved 14 billion 811 million yuan of operating income, an increase of 40.3% over the same period last year, a net profit of 2 billion 483 million yuan, an increase of 27.7% over the same period last year, and Anta's gross profit margin in the first half of the year was 56.1%, an increase of 1.8 percentage points compared with that of the previous year, especially the FILA brand of the company.

Statistics and growth of Anta's sports revenue and gross profit in 2014-2019H1

Lining achieved operating income of 6 billion 255 million yuan in the first half of this year, an increase of 32.72% over the same period last year, and realized a net profit of 795 million yuan to the parent company, an increase of 196% over the same period last year, exceeding the 709 million yuan announced before the earnings pre announcement, which far exceeded the market expectations. Tianfeng Securities pointed out that Lining's net interest rate improved significantly in the first half of the year, still in the stage of performance improvement, net interest rate still has much room for improvement, and profitability in the future is expected to continue to improve.

XTEP achieved 3 billion 360 million yuan in the first half of the year, an increase of 23% over the same period last year, and a net profit of 463 million yuan, an increase of 23.4% over the same period last year. Everbright Securities pointed out that in the first half of the year, the company relied on product, marketing and channel's continuous efforts to drive steady growth of performance. At the same time, through the establishment of joint ventures and mergers and acquisitions, the company continues to accelerate the landing of multi brand strategy and create long-term impetus for performance growth.

With the continuous improvement of performance, many sports apparel brand enterprises share a record high. This year, Anta sports shares rose 64.01%, repeatedly refresh a record high, the market value has reached HK $165 billion 500 million. Lining's stock price has surged 165.53% this year, continuing to refresh its record highs. Its market capitalization has broken through the 50 billion Hong Kong dollar mark. XTEP international has risen 11.76% this year.

　　 Sports apparel industry has broad market space.

The performance of leading companies continues to grow rapidly, and the development prospect of sports apparel industry is continuously optimistic by the market. Tianfeng securities research report pointed out that in the various categories of large textile and apparel, sportswear is one of the fastest growing sub sectors in the next ten years.

According to the statistical data of the foresight Industry Research Institute, the Chinese sports apparel market has been forced to rebound in 2014-2018 years after 2012-2013 consecutive years of decline, and the scale of sports apparel market has increased year by year, and the growth rate has been accelerating. In 2018, the size of China's sportswear market exceeded 40 billion US dollars, reaching 40 billion 100 million US dollars, up 19.5% from the same period last year, the highest growth rate in the past seven years.

Statistics and growth forecast of China's sports apparel market in 2012-2023 years

Judging from the growth rate, the average annual compound growth rate of China's sports apparel market in recent ten years is nearly 10%, significantly higher than that of other countries. In the next five years, the growth rate of the sports apparel industry is obviously better than that of other sub sectors, and children's wear is the only 22 sub garment industry with a compound growth rate exceeding 10%.

Statistics on composite growth rate of sub sectors in China's apparel industry in the next five years

In recent years, policies on promoting the development of sports industry have been released frequently to promote the development of sports apparel industry. In July, the opinions on the implementation of the healthy China action announced that there were 15 special actions in three areas. Through the joint efforts of the government, society, family and individuals, the masses could not get sick, get sick and improve their quality of life, and up to 5 of them involved sports.

Guoxin Securities believes that China's per capita sports consumption remains to be improved, and the brand concentration is high. The per capita consumption of sports goods in China is less than 1/2 in the US. The main consumer of sporting goods is 14-65 years old, which is much higher than that of the United States. In the future, the per capita consumption of sports goods in China still has great potential for growth.

Guoxin Securities pointed out that with the growth of the disposable income of our residents, the popularization of sports fitness activities and the upgrading of sporting goods consumption, the brand concentration continued to improve. The concentration of the top ten brands of sporting goods reached 72%, while the concentration level of the top ten of the US market was only 40%. With the increase of professionalism and diversity of residents' participation in sports activities, sports brand positioning in the more subdivided areas is expected to increase in domestic market share, and the long-term growth space is larger.

Judging from the current situation, the development strategy of the major sports brand enterprises in China is gradually differentiated. Among them, Anta has a more sophisticated brand layout, across professional and fashion positioning, in depth high-end and the mass market; Lining through the improvement of the overall business, brand remolding extends the Chinese Lining series; XTEP will focus on the main brand of mass running position, while buying high-end running, outdoor, fashion brand, complement the brand matrix.