ICBC International optimistic about China's sports apparel outdoor sportswear industry brand starters
Chinese sports apparel industry - brand starters
Insights on the industry
We are optimistic about China's sports apparel industry. A few days ago to visit major sports apparel company's orders would be, respectively, after discussions with the executives, we conclude sports apparel industry experienced four consecutive quarters after the trough has been the worst period of the past, the business environment is expected to be gradually improved.
We expect the sports apparel market experienced in 2008 Beijing Olympic ago after a high growth will be a year since 2010, an increase of 15% -20%, and power from the popularity of sports, public health awareness, and increase household incomes and urbanization.
After many months of clean-up of large discount retail inventory, consumer sentiment from the 3rd quarter of 2009 to recover. At present, the retail discount is shrinking, brand retailer-to-sales ratio improved than before. Dealers have received lessons from the past few quarters, it is now on the market's expectations have become reality, for orders and more rational. From the first two quarter of 2010, orders will be seen, most of the sports apparel company the amount of orders increased by 15% -20% growth rate is reasonable, and keep up with future industry growth story.
Stock picking advice
We are the preferred Anta, because it a) has clear objectives to five years to become the country's largest sportswear brands; 2) mass market positioning is correct, the high brand awareness, product value for money; 3) and the coming Olympic games are more closely contact is expected to follow the successful experience of the past, the development of Li Ning; 4) financial position, net cash per share, 1.3 yuan; 5) In addition to cash, the price-earnings ratio of 13.7 times in 2010, the valuation is not expensive.
Our first step for the special "buy" rating, as the Unit 1) is the investment in China's sportswear industry, cheaper choice; 2) for the popular fashion sportswear market; 3) open a new path through the sponsorship of recreational activities and artists endorsement marketing products; and 4) The spotted running the popularity of sport in China, with this sport to promote this as a platform for its products.