Anta Is On The Wrong Side: The Growth Rate Exceeds 40% In The First Place In The Housing Industry.

In August 26th, Anta (demand area: 100-200 square meters, has been stationed in 292 shopping centers, plans to open 300 this year) released the first half of 2019 earnings report.

During the reporting period, the revenue of Anta group increased by 40.3% to 14 billion 810 million yuan; operating profit increased 58.4% to 4 billion 260 million yuan; the profit attributable to shareholders increased by 2 billion 480 million yuan, an increase of 27.7%, and maintained a nearly 20% growth every year for six consecutive years; the gross profit margin increased by 1.8 percentage points to 56.1%; the rate of increase in interest rate increased by 3.2 percentage points to 3.2; and the net cash flow of operation reached the net income.

Digest: store upgrade, full channel coverage, acquisition of new brand

In the first half of this year, Anta group's online self operated retail channel exceeded 40%. The group electric business is dedicated to young people's favorite products, making topics through IP and designers, and through big data applications, to enhance product search function and consumer insight and demand forecast. Improve shopping experience through marketing innovation.

In the store image, Anta's ninth generation of new image shops have appeared in Chongqing, Shanghai and Nanjing. With digitalization, youalization and specialization, shops have more technology sense and fashion sense and enhance the interactive experience. Anta children's new 4 store image has also been upgraded, with professional sports, trend sports, baby children as the main player, and a new child testing system, which brings new shopping experience with scientific guidance.

Anta has opened five new strategies, namely, new targets, new products, new brands, new channels and new organizations. At the same time, the layout of the four major categories increased, and in the United States, Japan, Korea and China, the R & D center was upgraded.

Around the "synergy value" and the company strategy, Anta formed three major brands: Anta, Anta children, Spandi (SPRANDI), AntapluS based professional sports brand group; FILA, FILA FUSION, FILA KIDS and Xiao Xiao cattle (KINGKOW) oriented fashion sports brand group; AMER SPORTS (amifen sports), Desanto, klong sports as the representative of outdoor sports brand group. The three brands focus on their respective fields and achieve full coverage of consumers and full coverage of channels.

In March this year, Anta and other investors formed an investor consortium to complete the acquisition of AMER SPORTS; in April, the new board of directors of AMER SPORTS was established. During the reporting period, the AMER SPORTS board and management team have formulated the company's five year development strategy and the growth plan of the Chinese market.

Positive: the growth rate ranks first in the industry and sports market in depth.

In the first half of this year, Anta group achieved a profit of 14 billion 810 million yuan, an increase of 40.3% over the same period last year, ranking the first in the industry. The total number of Anta brands (including Anta children) is more than 10200.

FILA (Fei LE) brand store, including FILA KIDS (Fei Le children) and FILA FUSION (Fei Le Chao brand) nearly 1800, Desanto (DESCENTE) in China more than 110 stores, klong sports (KOLON SPORT) more than 170. Obviously, from the report, we can see that the overall sales and sales ratio of Anta has kept healthy, and its new shop opening effect has been greatly improved compared with the same period.

At the same time, Anta made four categories of basketball, running, comprehensive training and sports life to promote growth. Among them, the growth of Anta's basketball business line was very fast, nearly 35%; sports life category was favored by young consumers, and its water flow increased by nearly 30%; running and comprehensive training classes quickly distributed professional sports market with scientific and technological innovation.

In addition, some analysts pointed out that Anta was already the first major sporting goods group in China. In the first half of the year, a few single core performance indicators all set a new high, especially over 40% year-on-year revenue growth, ranking the champion in the domestic sporting goods industry (including international brands).

Negative: questioned by the three big short selling agencies

In the past year or so, Anta has encountered Blue Orca Capital, GMT Research Limited and Muddy Waters Research muddy water three big short selling agencies sniper raid. Only muddy water family has made 5 short selling reports for Anta, making Anta's share price like roller coaster, ups and downs.

In July 8th, mudshui released the first short selling report for Anta, saying that Anta secretly controlled most of its first class dealers, thereby inflated sales and profit margins. The report caused Anta's market value to evaporate by about HK $10 billion 900 million and choose an emergency suspension. The next day, Anta issued a notice and resumed.

In the second reports of muddy water, he questioned Anta's largest shareholder, saying that in the 2008 Anta IPO, Anta insiders were suspected of using the agent system to transfer high-quality assets of listed companies (international brand retail business). But at this point, Anta has entered the "prepare for war" state, issued a statement quickly denied, stabilized the stock price of the day, and a small increase. In fact, despite Anta's claim that FILA is the "growth engine" of the group's revenue, there has been little disclosure of the specific data of the brand in previous years.

This year's semi annual report may be a powerful counterattack by Anta on the short selling of external agencies. Anta first disclosed the core data of FILA. From the report, we can learn that in the first half of 2019, the gross margin of FILA was far ahead of that of ANTA brand. The gross profit of 4 billion 673 million yuan was 79.2% higher than that of 2018, while the gross profit margin of ANTA increased by 14% from 2 billion 829 million 600 thousand yuan to 3 billion 225 million 300 thousand yuan in the same period of 2018. With the support of FILA, Anta sports medium term gross profit increased by 45%, from 5 billion 726 million 400 thousand yuan to 8 billion 302 million yuan.

The median operating profits of FILA and ANTA brands were 2 billion 442 million 300 thousand yuan and 1 billion 894 million 400 thousand yuan respectively, representing an increase of 42.1% and 80.9% respectively compared with 1 billion 718 million 900 thousand yuan and 1 billion 47 million yuan in 2018.

Since the short report, at least 10 investment banks have published research reports to support Anta. Among them are Boshi Asia Pacific, the global strategy of BOC, the new ICBC economy, the Greater China of Huaxia and the new era of China. At present, Anta's stock price is still rising. As of midday closing in August 26th, Anta's market value is about HK $164 billion 776 million.