Kill The Bears! Chinese Sportswear Giant Breaks The Curse Of "Local Brand"

At the time when many local clothing brands were caught up in the shop, the Chinese sportswear giant took the lead in breaking the curse of the local brand, making a steady profit and beating the bears.

Since its listing, Anta sports shares have risen more than 22 times, and are still building new heights, bringing back three institutions that have been laid up for more than a year.

　 One of the compulsory courses of the giants is to carry on singing.

In June 12, 2018, GMT, a short selling organization, issued a short report. The short selling target is a number of sports brands in China.

The short report said that since 2005, 9 of the 16 Chinese sporting goods companies listed have been proved to be liars, all from Fujian. Unfortunately, the other 7 companies, including Anta, XTEP and 31st degree, have many similar characteristics with those already proven to be cheaters. GMT suggests selling or avoiding these companies.

GMT is very concerned about Anta in the report, saying that Anta is a Swindlers Company and thinks Anta is worth only HK $10. Even if Anta was the best sporting goods company in the world, it was worth 34 times as high as it was, the report said. Anta sports once fell 7%, but it picked up quickly.

At the end of May 2019, Soren Aandahl, founder of Blue OrcaCapital, published an empty talk on Anta's Sohn Investment Conference in Hongkong, saying Anta's share price should fall by 34% at most. According to the information from the conference, Blue Orca Capital mainly questioned the fact that the profit data was too perfect, and the dividend rate dropped when the cash flow was steady.

Blue Orca Capital is famous for its airport share Samsonite. Anta sports declined 13% due to Soren Aandahl's comments, but then Blue Orca Capital did not issue a detailed short report.

The most violent muddy water is coming, aiming at the same sport apparel giant Anta sports.

Muddy water issued 5 short reports, finally let Anta sports share price...... We must know that once the muddy water is released to the Target Corp, we will make a short report.

During the short selling period of Anta, other Chinese sportswear giants were also affected by short selling agency reports, and share prices also fell. But with the disclosure of performance reports and market confidence, Lining shares also performed well. It was the second best constituent stock in the MSCI Asia Pacific Index, which rose 223% in the year.

Foreign media contacted Blue Orca's founder, Soren Aandahl and muddy water, for their comments on shorting Anta and other Chinese sportswear brands. As of press release, neither of them responded to the media.

Gillem Tulloch, founder of GMT Research and author of a short report on sports apparel brands in China in 2018, responded that "I think Anta sports bubble is too big and the company's valuation is still problematic".

The largest securities company in Singapore, Dahua securities, raised Lining's investment rating to buy. At the same time, Anta sports also won the ratings of Citigroup, Merrill Lynch, Credit Suisse, Goldman Sachs and other international institutions such as "buy" and "overweight".

Industry insiders commented that the growth of Chinese sports clothing may last for ten years, and is still in its infancy.

　　 Two of the big business's compulsory course: to get the bottom up and to play with fashion week.

In fact, the domestic sports brand is not always so popular.

In the three or four years since 2010, the domestic sports brand is the representative of "local flavor", and it is a kind of clothing that the old and middle-aged people disdain. Both Anta and Lining experienced a trough during this period. What is more interesting is that once "Daphne" and "China Zara" La Natsu Bell Du became the top clothing and footwear brand in China during this period.

The most profound feeling of chill in this period is Lining. In 2012, Lining began to close the store in large numbers, losing 1 billion 979 million yuan in that year. In the next two years, the losses were 391 million yuan and 781 million yuan respectively, and the total amount of losses from 2012 to 2014 exceeded 3 billion 100 million yuan. From 2010 to 2013, Anta sports also experienced a trough, and its share price fell more than 55%.

After the two giants experienced the trough, they adjusted their strategies separately and finally realized their respective beauty.

Anta sports side, on the one hand, R & D costs continue to increase, to master more core patent technology. According to the data released by Anta, in 2014-2017 years, the cost of R & D activities of Anta was 211 million yuan, 308 million yuan, 351 million yuan and 479 million yuan respectively, accounting for 2.36%, 2.77%, 2.63% and 2.87% respectively, and Anta's R & D costs showed an upward trend.

At the same time, after the acquisition of FILA, Japan's functional sports brand Desanto (Descente), Korean brand Kolon Sport, children's wear brand Xiao Xiao Niu KingKow, and amamin sports international high-end brand income pocket. Through the integration and expansion, Anta sports has nothing to do with Tu Wei in the minds of consumers. It has become one of the first brands of "chao chao".

Through optimizing the channel, Lining stopped the unrestricted expansion and started to distribute and expand e-commerce to stimulate brand vitality again. In 2018, Lining appeared in New York fashion week. Many showrooms sold out in the next few minutes after the end of the show.

In addition to going to fashion week, Lining and Disney worked together to launch "Mitch family", "Star Wars" and "Toy Story" and other products. They also joined hands with the top domestic electric club "RNG" and "Newbee", launched the concept of "Chinese player" joint clothing, and combined with Losangeles fashion artist DavidFlores to pour graffiti works into Lining brand.

In basketball, Lining expanded the influence of his products through different forms of cooperation with celebrities. In 2017, it sponsored rights and interests of shirts, sports shoes and game balls which were renewed by CBA for 1 billion yuan in 5 years. In 2018, it gave NBA player Wade a life contract, and made the core of "Wade road" in depth through the long-term binding of the NBA player.