Posted on May 9,$Sporting Goods (BK1185.HK)$The concept sector is picking up collectively. As of press release,$XTEP INT'L (01368.HK)$Up 7.77% to HK$5.41;$LI NING (02331.HK)$Up 4.07% to HK$21.75;$YUE YUEN IND (00551.HK)$Up 3.50% to HK$14.80.

According to the news, on May 8, Gao Zhidan, Party Secretary and Director of the State Administration of Sports, issued an article stating that he will work with relevant departments to develop policy documents to promote the transformation and upgrading of sporting goods and equipment, continue to build a national sports consumer brand event, host the China Outdoor Sports Industry Conference, further enhance the popularity of a series of activities such as “Follow the Event to Travel” and “Outdoor Sports Vitality Landscape”, carry out the second batch of national sports consumption pilot city assessments, and organize multi-themed sports consumption promotion activities to innovate and create sports consumption scenarios and continue to expand the scale of sports consumption.

According to Shanxi Securities, the completion of retail sales for 2024Q1 sportswear brands is in line with the company's expectations. Retail sales growth in mid-late March increased sequentially compared to January-February. Due to differences in the base for the same period last year, online channels are generally growing faster than offline channels. Retail discounts have remained stable, moderate and positive. We expect the company's gross profit margin at the reporting level, especially the Anta brand, which has a high direct management share, and franchisee business confidence to stabilize, moderate and improve. The inventory sales ratio at the end of the period was less than 5 times, and it was within the manageable range of each company, providing support for subsequent revenue growth to drive reporting revenue growth.