Lining Is Ushering In A New Peak In The Past 10 Years, Its Market Value Has Increased By Nearly 10 Billion.

Contrary to Anta sports, which is frequently targeted by short sellers, Lining is ushering in a new peak in the past 10 years.

According to the fashion business bulletin, Lining shares in Hong Kong rose 5.3% to HK $19.46 today, a record high since August 2010, with a market value approaching 45 billion Hong Kong dollars. Since its two degree show in Paris in June 22nd, Lining's stock price has risen more than 27%, and its market value has increased by nearly HK $10 billion.

In June 24th, Lining issued a notice that the net profit of the company in the first half of 2019 was about 709 million yuan, an increase of about 440 million yuan over the same period in 2018, an increase of about 164% over the same period last year, and a continuous profit of 509 million yuan, an increase of about 240 million yuan compared with the same period in 2018, an increase of about 90% compared with the same period.

According to Credit Suisse in a recent research report, although the sports wear industry is facing more competition and slower growth, Lining can go against the trend. In the next three years, its compound annual growth rate will reach 42%. It is expected that the net profit margin of will rise from 6.8% in 2018 to 11.7% in 2021, and the profits in 2021 and 2021 will reach 1 billion 400 million yuan and 2 billion yuan respectively, which will drive the market to reassess its market potential.

In fact, Lining has only aroused the attention of the industry for more than a year. In February last year, the sports brand was first launched on the New York fashion week. It was regarded as an important turning point in the development history. But for cross-border fashion initiatives, Lining admitted that it was accidental.

At the beginning of last year, Lining boarded the fashion week in New York on the occasion of the invitation from Tmall New York China Japan. Lining, general manager of the electricity supplier Feng Ye, said at the time, "still underestimated the enthusiasm of users, the show just finished 1 minutes, and many products were sold out in Tmall."

Then, Lining appeared in Paris men's wear week last June and New York fashion week in February this year. In March this year, when Lining held the fashion line 2019 autumn and winter product launch activities, he first put forward the concept of Lining fashion line, and made clear the positioning of the product line targeting the middle and high-end market with sports fashion style, marking the development of Lining's fashion strategy from a casual test to a sustainable business.

Li Gang, general manager of Lining fashion line, first revealed to the fashion headline last month the positioning and expansion plan of the new product line after its establishment. He said that the design team, including the four fashion week series, is a team composed of designers with different product lines. It is an independent project that is different from conventional business. But after that, the Lining fashion line will be run by independent teams from design, products, merchandise to sales.

In terms of actual sales, Lining's fashion line now relies heavily on the domestic market. Since August last year, the group has opened a new channel for the fashion line. It is tentatively called the Lining fashion store in China. Up to now, more than 60 stores have been opened in China, with a shop area of about 150 square meters, which is mainly distributed in the top business circles of the first tier and second tier cities, such as Sanlitun, Beijing and SKP. Shanghai's iapm and Hong Kong Hui are also planned to open.

Li Gang disclosed that the Chinese Lining fashion shop generally opened the shopping center in the leisure trend floor instead of the sports floor. It was adjacent to Adidas clover, FILA and international leisure brands such as Calvin Klein, and the price segment was higher than that of Lining before. Li Gang believes that if the brand and product strength are enough, the pricing of Lining's fashion line still has room for improvement.

It is reported that the number of Lining fashion stores in China opened more than 20 stores in 2018, and plans to open 100 stores this year, bringing the total number to 120. Although this type of store has not yet made significant contributions to group sales, the internal data show that the store has a strong profitability of single stores, and its goods are strong, and terminal flow discount is more than ten percent off.

Thanks to the wide acclaim of the new style and design, Lining's income increased 18% to 10 billion 511 million yuan last year, the first billion times in 8 years, and the net profit rose 39% to 715 million yuan. To better stimulate performance growth, the group decided to implement product cycle management PLM system to help manage business growth and replace its original management system.

Lining, director of IT system, Zhu Yuangang, said the new Centric PLM is powerful and easy to use. The system covers not only core processes such as product planning, design and development, fabric and accessory management, cost and quality control, but also flexible and expansible, which can effectively meet the needs of Lining brand.

WeChat public number LADYMAX pointed out earlier that the public consciousness is often lagging behind. When people began to notice the fashionable Lining, the actual change had already been brewing or even happened. There are indications that Lining is becoming stronger and stronger under the guidance of the fashion line, but whether or not we can take this opportunity to attract more consumers in many aspects will be the key to Lining's long-term sustainable growth. Author: Zhou Huining