In the past three years, Li Ning's stock price has risen more than 11 times, and Anta Sports has risen more than 5 times
The domestic sports brand is on fire, and the performance stock price is steadily rising
Two months ago, the domestic sports brand "Li Ning", which was slammed for a pair of sports shoes for nearly 50,000 yuan, has exploded in the past two days: its performance has increased greatly, and its stock price has risen.
Coincidentally, the domestic brands Anta Sports and Bosideng, which are also listed on the Hong Kong stock market, have also seen significant performance gains recently. Their stock prices continue to rise and become a trend in the Hong Kong stock market. Analysts in the textile and apparel industry of securities firms believe that this is the rhythm of the surge of domestic products.
Li Ning, Anta's mid-term report announced a big increase, stocks become big bulls
Last weekend, "Li Ning" (02331.hk), which is listed on the Hong Kong stock market, announced its first-half performance forecast. In the first half of the year, its revenue increased by more than 60% and its expected net profit was not less than 1.8 billion yuan, an increase of 164.7% from the 680 million yuan in the same period in 2020.
Anta Sports (02020.hk) also disclosed its performance forecast for the first half of the year. Compared with mid-2020, the overall revenue of the group in the first half of this year increased by no less than 55% year-on-year, and net profit (excluding losses from joint ventures) is expected to increase year-on-year. No less than 65%, net profit (including loss of joint venture) increased by no less than 110% year-on-year
Bosideng (03998.hk) announced its 2020/2021 fiscal year results last weekend (April 1, 2020-March 31, 2021), achieving revenue of 13.517 billion yuan, an increase of 10.9%, and achieving a net profit of 17.10 attributable to the parent Billion yuan, an increase of 42.1%.
Brokerage analysts have raised their performance forecasts for these domestic brands.
Stimulated by news that performance exceeded expectations, Li Ning's stock price soared by more than 20% on Monday, closing the market up 13.62%, Anta Sports rose 5.45%, Bosideng rose 6.36%, all setting record highs.
On Tuesday, Li Ning rose another 1.65%, and Bosideng rose 3.99%.
Judging from the first half of the year, Li Ning's share price has risen by 79%, Anta Sports has risen 52%, Bosideng has risen 46%, while the Hang Seng Index has risen by 6.66% during the same period.
In fact, since 2019, the stock prices of these domestic brands have continued to go bullish. Among them, Li Ning's stock price has risen by more than 11 times, Anta Sports has risen by more than 5 times, and Bosideng has risen by more than 4 times.
At present, the total market value of Anta Sports is as high as 508.5 billion Hong Kong dollars, Li Ning's total market value is 237.9 billion Hong Kong dollars, and Bosideng's total market value is 62 billion Hong Kong dollars.
Behind the stock prices of these domestic brands are strong, there is strong support from the fundamentals.
For example, in the just-concluded "618" event, the domestic apparel industry sold 68 billion yuan, a growth rate of 70.4%, and domestic leading apparel brands performed well.
Compared with the negative sales growth of Adidas and Nike, the sales of leading domestic sportswear brands Anta, Li Ning, and Xtep all achieved double-digit high growth.
In addition, clothing retail sales in May increased by 12.3% year-on-year, and the cumulative increase from January to May was 31.9% year-on-year.
What is behind the explosion of domestic brands?
Li Ning was once called by the media as "following the failure of the post-90s generation", but it took just one or two years to become the leading brand of the national tide.
Mr. Cheng, a private equity person in Hangzhou, told reporters that he has been following Anta Sports in Hong Kong stocks for the past two years, and he often goes to Tmall, JD.com and other platforms to see Anta's sales in shopping malls such as Yintai.
In his opinion, there are several reasons behind the better and better performance of domestic brands such as Anta. First of all, the quality and design of these domestic brands have kept up with the international brands, and even surpassed them.
Secondly, now the mainstream consumer of sports brands is the "Generation Z". Their brand-new consumer awareness has led to the rapid rise of a large number of domestic consumer brands, and has formed a new trend of national consumption.
"You go and look at the products of domestic products such as Li Ning and Anta. Not only are they technically content, they are also high-valued, but they are also very personal and very attractive to young people. Walking on the street, many young people wear them on their feet. These domestic brands." Mr. Cheng said.
Lu Ming, an analyst in the consumer discretionary industry of Kaiyuan Securities, believes that under the rising tide of the national tide, the advantages of domestic brands such as Li Ning will continue to be released. There will be new product releases and linkages every month, and the sales of new products are bright. The penetration rate of high-end consumer groups such as young mothers has steadily increased.
After signing with star Wang Yibo, Anta's sales have also seen substantial growth.
Anxin International stated that it continues to be optimistic about the future development of China's sports industry. Domestic sports brands will grow rapidly with the development of the industry. Anta, as a leading enterprise and official partner of the Winter Olympics, will first benefit from industry growth dividends.
After Li Ning and Anta Sports disclosed their performance forecasts, the international investment bank Goldman Sachs raised the profit forecasts and target prices of the two companies, and both gave them a "buy" rating.
Goldman Sachs expects that the market share of domestic brands such as Li Ning and Anta Sports will increase.
Our reporter Liu Xianxin