Home >

Anta Sports Brand Value Has Advantages

2011/3/1 9:33:00 39

Anta

Sports (2020) profits increased by 24% to 1 billion 551 million yuan in 2010, which exceeded our expectations, and sales increased by 26% to RMB 7 billion 408 million yuan as a result of higher sales volume than expected.

The dividend of the company at the end of the year and the whole year is 0.25 yuan and 0.45 yuan respectively, and the dividend payout ratio is equivalent to about 62%.

Footwear and clothing accounted for about 52% and 45% of the turnover in 2010 respectively, while accessories accounted for the remaining 3%.

Revenue increased by 15% and 38% to 3 billion 825 million yuan and RMB 3 billion 333 million respectively, while the income of accessories increased by 68% yuan to 250 million yuan per year.

The main reason for the increase in turnover is that the sales of footwear and clothing increased by 10.9% and 27.1% respectively compared with the previous year, while the average selling price increased by 4% and 8.8% respectively.

By brand, Anta brand accounts for 92% of total revenue, while sports life series, children sporting goods, Fila and sales to overseas customers account for the rest.

We believe that the series of sports life will continue to make more contributions than children's wear and Fila series. With the company's active expansion of this product line, sports life series will still have potential for growth in the future.

Strong bargaining power

Gross margin increased by 0.7 percentage points to 42.8%, but due to

Raw material

As the price rises, the gross profit margin in the second half of 2010 is lower than that in the first half of the year.

The main reason for the slight increase in gross margin is that the average selling price of footwear and clothing exceeds the average cost.

The average price increase reflects Anta's strong brand value and brand reputation.

In 2010, as the company purchased raw materials in advance and had strong bargaining power, the average cost of footwear increased by 3.6% to 55.1 yuan per year, while the average selling price increased by 4% to 99.5 yuan per year.

On the other hand, the average selling price of clothing increased by 8.8% to 65.8 yuan per year, but as the company expanded its design team and further upgraded its product range, the average cost increased by 5.7% to 39 yuan per year.

By the end of 2010, the number of Anta stores was 7549. In addition, the company had 749 sporting life series and 383 children's stores, with a net increase of 958, 406 and 155 respectively.

The total sales area of Anta stores (excluding sports life series and children sporting goods Series) continued to grow by 24% year-on-year, similar to the increase in 2009.

The company will expand its stores more actively in North China, so that its distribution in East China, Southern China and North China will be more balanced, which will reduce the impact of seasonal factors on the supply chain.

The average sales area of each store increased by 8% to 116 square metres per annualized year.

Looking ahead, Anta will continue to expand its distribution network, and will increase 651 Anta stores, 251 sporting life series stores and 117 children sporting goods stores in 2011, bringing the total number of three to 8200, 1000 and 500 respectively.

The company also announced its performance in the third quarter of 2011, with an annual increase of 20% in orders.

footwear

And the average selling price of clothing was recorded double digit increase.

Costs continue to be pferred to customers.

The company's financial position is still robust. By the end of 2010, Anta had a net cash of 4 billion 300 million yuan, or 1.72 yuan per share.

We believe that Anta will remain the leading position in the market of the mass sports wear market in the mainland.

The rising cost of raw materials will continue to create pressure on gross margins, but we believe that the company can continue to pass costs to customers by raising the average price by 8-10%. However, because of the elasticity of demand for sports apparel products, this will have a negative impact on sales.

Anta will continue to launch the Olympic themed marketing campaign, which will further enhance brand value.

We set the target price of the unit at 13.70 yuan, equivalent to 16 times the expected price earnings ratio in 2011.