Anta's Two Quarterly Bulletin Board, Vip.Com, Solomon Or FILA?

Anta Sports Products Limited (hereinafter referred to as "Anta sports") announced the latest business performance in the second quarter of 2019 in July 11th. The announcement is only related to group ANTA, FILA, DESCENTE, KOLONSPORT, SPRANDI and KINGKOW brand businesses, and does not include AmerSportsCorporation business.

In the second quarter of 2019, the retail sales of Anta brand products (calculated at retail value) increased by 10%-20% over the same period in 2018.

In the second quarter of 2019, the retail sales of other brand products (calculated at retail value) increased by 55%-60% compared with the same period in 2018.

In the first half of 2019, the retail sales of Anta brand products (calculated at retail value) compared with the same period in 2018, achieved a low growth rate of 10%-20%.

In the first half of 2019, the retail sales of other brand products (calculated at retail value) increased by 60%-65% compared with the same period in 2018.

Reporters have learned that Anta management has said that the company's sales in the second quarter of 2019 were solid and consistent with the target. The Anta brand is advancing towards 14% to 16% (midteens) this year, compared with 11% to 13% (low-teens) growth in the first quarter, while sales growth on Anta brand network has accelerated to 30%.

In addition, Anta also said that consumer sentiment was weak in April 2019, but the company observed a clear recovery in May 2019. Channel inventory has also maintained a very healthy level in recent months. Anta also started cooperation with vip.com in the 2 quarter of 2019, which will benefit the company's future e-commerce business.

Industry analysts believe that following the strong growth in retail sales in the first quarter (an increase of 70% over the same period), Anta sports should raise the target of FILA retail sales (up 30% over the previous year). As for AmerSports, it is expected that the recent macro instability will not have a significant impact on the growth prospects of these brands.

Xue Yuan, an analyst with CITIC Securities, said that at the moment, the market was worried about the boom of the sports industry. However, in the second half of 2018 and the first quarter of 2019, the performance of sports leading companies was obviously better than that of the whole garment industry, for two reasons:

First, the sports industry in recent years has carried the diversified demand of consumers for functional, fashionable and healthy lifestyles. Sales are more vigorous and sustained than other clothing sectors.

Two, the industry attribute determines that the sports industry concentration degree is higher, while the domestic sports industry is still concentrating stage. The trend of leading companies to seize share dividends and increase concentration is more obvious.

In the view of Xue Yuan, the growth of Anta sports in 2019 is still certain.

1, the main brand aspect, Anta sports has successfully constructed from terminal retail, supply chain to product building ability. It is expected that there will still be room for improvement in adult clothing business efficiency, and children's clothing and electricity suppliers hope to maintain rapid growth. It is estimated that 100-200 stores (mainly children's clothing) will be opened in 2019, and the income will maintain double-digit growth in the next few years.

2, FILA continued high growth to verify the ability to build more brands, and 30%+ growth is expected in 2-3 years. Among them, there is still room to open for adult wear, and dozens of new products are expected in 2019. The branch brand takes root, and the high-end children's clothing in Kids leads / enjoys a continuous increase in the industry bonus, and the Fusion tide brand enjoys consumption growth and growth. It is estimated that two brands will be added dozens of new products in 2019. Descente expects to open about 20 stores in 2019 to achieve breakeven.

3, Amer began to affect the report in the two quarter, and actively promoted integration. But considering that Amer is dominated by winter products, the two quarter of the past is mostly a loss and the acquisition has a one-time cost, it is expected to have an impact on the company's first half performance, but it is expected to increase EPS in the whole year.

Xue Yuan judgement, in the short term, Anta sports is expected to make efforts from three aspects: first, we should focus on creating the brand of the bird and Solomon, enrich the product line and strengthen the fashion elements; two, strengthen the direct camp; three, strengthen the investment in China; in the long run, Anta is expected to make quick efforts to build a niche market with Amer, in addition, the main brand will go up the steps again, and finally achieve a leap from excellence to excellence.