According to the Zhitong Finance APP, Ping An Securities has released a research report stating that based on the optional consumer recovery logic, the sports and outdoor sector will become a key industry for the recovery of the optional consumer industry. After a long period of adjustment, leading stocks in the sports and outdoor industry have a valuation that offers good value for money and will welcome a new round of market dynamics. It is recommended to allocate quality core assets in the sports and outdoor sector, especially leading hakuba stocks that have shown signs of recovering from bottom difficulties.

Ping An Securities pointed out that due to the highly developed and very segmented consumer demand in overseas mature markets, their social consumption phenomena represent a stable state of consumer demand after high-level social development. Therefore, the current state of social consumer demand may provide certain reference value for the trends of consumer demand in our country in the future. The development of our country's sports and outdoor industry has only been for over thirty years, and it is currently in the golden period of rapid development.

Currently, although the economic growth rate is slowing, the industry is still in its early development stage, and many subcategories of sports are just beginning in our country. Therefore, the improvement of industry penetration will bring more incremental space. Ping An Securities believes that there are three major development trends for the industry in the future:

Firstly, high-cost-performance domestic brands have a competitive advantage. Our country has a good grassroots base for sports and outdoor footwear and clothing, and the public's recognition of local brands is increasing. In the short term, due to the impact of the global pandemic, consumers prefer cost-effective products, and the cost-performance advantage of domestic sports brands has been recognized by the public. With the change in e-commerce shopping methods and the emergence of online shopping and live-streaming sales channels, domestic brands are rising rapidly.

Secondly, footwear major products still have high growth potential. According to the 2023 financial reports of various companies, compared to NIKE's 64.7% share of footwear, anta sports and li ning's footwear shares are 40.5% and 48.6% respectively, indicating considerable room for improvement. Ping An Securities believes that increasing the proportion of footwear revenue and focusing on footwear technology research and development will become another development direction.

Thirdly, a global strategy direction is emerging, with an expansion trend overseas. From a medium to long-term perspective, expanding the commercial footprint overseas will become a new growth point for brand performance. Domestic sports brands in our country are seizing opportunities to timely initiate global strategies, looking for breakthroughs overseas, which is also a direction for future performance expansion.

Investment main line: Main line one, top-down, selective market share expansion and valuation cost-effective leading companies in niche tracks. Among them, it is recommended to focus on investment opportunities in footwear manufacturing related export enterprises. Suggested attention: shenzhou international group holdings limited unsponsored adr (02313) etc. Main line two, bottom-up, selective companies with strong earnings certainty and higher dividend yields. Among them, it is recommended to pay close attention to apparel brand companies with marginal improvements and leading companies with stable dividends. Suggested attention: anta sports (02020) etc.

Risk warning: Changes in consumer preferences, uncertainty in overseas demand, and overall inventory backlog risk in industry retail channels.