Li Ning Co. Ltd., Xtep, Anta, Bosideng International and other sporting goods stocks joined hands to hit new highs in intraday trading today. Li Ning Co. Ltd. announced on Friday that the net profit in the first half of this year is not less than 1.8 billion yuan, compared with 683 million yuan in the same period last year.
Looking back on the first half of this year, thanks to positive factors such as the national tide and the resumption of sports events, Hong Kong sporting goods stocks were considered "coquettish" in non-essential consumption, rising more than 300% in 361 years, Xtep soared nearly 29%, Li Ning Co. Ltd. rose nearly 80% this year, ANTA Sports Products rose more than 50% this year, and Bosideng International rose nearly 40% this year.
Although most US sporting goods stocks did not rise much this year, Nike Inc benefited from the pent-up demand for sneakers and sportswear by US consumers this spring, which also allowed investors to see a repair of its global operating capacity. it jumped 15 per cent to an all-time high after reporting record quarterly sales last week.
How does the market view the future trend of sporting goods and even large consumption? If ordinary investors don't have much energy to keep track of individual stocks, what funds are there that have lost bets on related stocks?
Many institutions are optimistic about the long-term trend of consumer stocks, and the fundamentals of Chinese sports brands are expected to continue to improve.
Taikang Capital Management said in the outlook of the Chinese and Hong Kong stock markets in the second half of the year.
Consumption, medical care, information technology and other leaders with strong growth and technical strength enjoy a significant valuation premium because of their stable growth and the quality of the company. Investment opportunities are more structured: Internet leading companies; consumer goods with strong pricing power; manufacturing stocks.
Wang ran, general manager of Oriental Fund Rights and interests Research Department, said recently
Consumer core assets can pass through bulls and bears for a long time, and it may take time for space in the short term, but in terms of the longer-term dimension, its long-term moat has not changed. As overall consumption escalates, people buy more wine to buy quality and brands, rather than real sales.
Consumption this year is still three main lines, the first one is the core consumer assets that have been verified by the market, or the core consumer assets with a very wide moat. The second is the main line of the emerging consumer category. The third main line is that this year or even next year, we can track and allocate travel consumption one after another.
CICC said
Chinese consumers' recognition and acceptance of local brands have increased. In the long run, we believe that with the enhancement of China's economic strength and national self-confidence, as well as the unremitting catch-up of local brands in product design, scientific and technological innovation and the application of new materials, the logic of increasing the market share of local sports brands will continue for a long time and accelerate. Li Ning Co. Ltd. will benefit from the general trend of the rise of local brands, and the fundamental improvement is expected to continue.
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Maintain the "buy" ratings of Li Ning Co. Ltd. and ANTA Sports Products, raising their target prices by 47 per cent from HK $70 to HK $103 and HK $180 by 19 per cent to HK $215, respectively, and the market share of domestic brands is expected to increase; in the long run, ANTA Sports Products and Li Ning Co. Ltd. have 47-50 per cent up room for 48-49 per cent.
These funds have been invested in sporting goods stocks
As of May 31, 2021, Li Ning Co. Ltd. wasFuture assets Asian Consumer Stock Excellence Fund (LU0593848301.HK) $Accounts for 6.7% and is the largest position for the time being.
As of May 28, 2021, Nike Inc was$Patek Select Brand Fund (LU0280433847.HK) $Accounting for 3.77%, temporarily the eighth largest position.
As of May 31, 2021, Nike Inc was$Jinda Global quality Equity income Fund (LU1228905037.HK) $Accounting for 3.3%, temporarily the ninth largest position.
What are the characteristics of these funds that take a fancy to sporting goods stocks?
Future Asset Asian Consumer Stock Fund of ExcellenceAccording to public information, the investment objective is to achieve long-term growth in fund prices through the capital appreciation of the relevant stock portfolio. Investment managers achieve the Fund's objectives by focusing on stocks and equity-related securities of Asian companies that are expected to benefit from increasing consumer activity in Asia (excluding Japan).
The monthly report of the fund in May 2021 shows that Li Ning Co. Ltd., China China exemption, Tencent, Kakao and HDFC Bank Ltd are the top five best investments.
Patek Select Brand FundAccording to public information, it invests at least 2/3 of its total assets in shares issued by companies operating in a selected brand industry covering all products and services to seek capital growth. There are no geographical restrictions on investment.
According to the monthly report of the fund in May 2021, LVMH, American Express Co, L'Oreal, Kering Group and Apple Inc were the top five positions, while Nike Inc and Lulu Lemon were the eighth and ninth positions respectively.
Jinda Global High quality Stock income FundAccording to public information, the fund achieves income and long-term capital appreciation mainly by investing in stocks of global companies. The company election of the fund will not construct the portfolio according to size, industry, or regional restrictions. The Fund will focus on investing in shares that are considered by the investment manager to be of high quality.
According to the monthly report of the fund in May 2021, Microsoft Corp, Visa Inc, Philip Morris International Inc International, Swedish match Company and ADP were the top five positions, while Nike Inc ranked ninth.
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