Recently, the sporting goods sector of Hong Kong stocks has been strong. Xtep International has hit new highs, rising about 55% this month. Li Ning Co. Ltd. has continued to rise since mid-March and has risen more than 50% in the past month and a half. ANTA Sports Products is up more than 4% today and about 12% this month.

Strong growth of domestic sports brand Q1

So far, listed domestic sporting goods enterprises have completed the disclosure of their operations in the first quarter of 2021. From the flow end, they have achieved substantial year-on-year growth due to the low base under the 2020 epidemic, the recovery of clothing consumption and the cotton incident.

• Among themLi Ning Co. Ltd.Outstanding performance, directly benefiting from the external boom in domestic products and the upgrading of its own brand and operational efficiency, the platform-wide pipeline increased by 80% Mel 90% compared with the same period last year, offline pipeline increased by 80% Mel 90%, and online pipeline increased by 100%.

• Multi-brand sports clothing leaderANTA Sports ProductsThe three growth curves are clearly positioned. In the first quarter, Anta's main brand, FILA and other brands increased by 40%, 75%, 80% and 115%, respectively.

• Other domestic brands are also showing good momentum.Xtep InternationalThe running water increased by 55%.361 degreesThe running water of adult and children's wear series is the same as the increase of double digits and 20% Mel 30% low segment respectively.

Head enterprises enter the middle and high-end market, domestic substitution accelerates

In terms of industry logic, Guojin Securities said, adhere to"continuous prosperity of good industries + share expansion of good companies"The point of view.

The agency believes that with the long-term consumption upgrading, popular sports, and the continuous release of dividends from sports industry support policies, the consumer base and unit prices of sportswear will increase significantly, and the sportswear track will have a deterministic growth in the next 5-10 years.

Domestic sports brands headed by ANTA Sports Products, Li Ning Co. Ltd., Xtep International and 361o have made great progress in product science and technology, brand marketing and operational efficiency. The domestic substitution process has been started with the emergence of high-praise, medium-and high-price products.

After the cotton incident, consumers are more willing to try domestic brands, thus accelerating the pace of domestic substitution.

According to Guojin Securities, since the cotton incident fermented, the process of domestic substitution has not diminished with the passage of time. In terms of daily sales of BABA platform, domestic head brands ANTA Sports Products (including Anta, FILA) and Li Ning Co. Ltd. (including Li Ning Co. Ltd. and China Li Ning Co. Ltd.) continuously maintained high one-day year-on-year growth, while international brands Nike Inc and Adidas declined by 50-80 per cent year-on-year. Judging from the cumulative sales last week (2021-4-19-2021-4-25), Nike Inc and Adidas fell 67.1% and 74.9% respectively compared with the same period last year, while ANTA Sports Products and Li Ning Co. Ltd. increased by 25.8% and 23.3% respectively.

This proves,In the case of high concentration of companies at the head of the industry, domestic brands are expected to enter the middle and high-end market in addition to enjoying the growth opportunities of the industry. gradually seize more than 40% of the market share occupied by international brands Nike Inc and Adidas (2020 data)To achieve performance growth faster than the growth rate of the industry

GF Securities Co., LTD. is optimistic about ANTA Sports Products and believes that it coincides with the "double Olympics". The company's main brand, as a partner of the Olympic Committee, is facing the best window for brand promotion, superimposed by the aftermath of the BCI incident, and the company is expected to completely get out of the previous turbulent period in which the main brand positioning has swayed.