Annual report data display
Key accounting data and financial indicators
Annual review: In 2020, the operating income of ANTA Sports was 355.120 billion yuan, up 4.7% year-on-year; the gross profit margin was 206.510 billion yuan, up 10.7% year-on-year; Net cash flow from operating activities was $66.26 billion, up 3.0% year-on-year.
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Brokerage China
"I didn't expect it!" The stock price of this domestic brand has soared a hundred times in 10 years What are the highlights of the global sportswear "competition" in the Winter Olympics? 》
At the opening ceremony of the Winter Olympics held on the evening of February 4, well-known brands such as ANTA, Adidas, Lululemon, Uniqlo, and Armani appeared. Interestingly, there are many listed companies behind these brands, among which Anta Sports, a representative of domestic products, ranks among the top four with a market value of 273.5 billion yuan.
As a domestic brand, ANTA's appearance at the Beijing Winter Olympics attracted special attention. In the capital market, ANTA Sports is a big bull stock with a higher yield than Moutai. Based on the compound share price, the ten-year income is more than 100 times. Behind the rapid expansion of ANTA's market value is its expansion of its brands. In 2009, ANTA Group acquired the trademark operation rights of Italian brand Fila in Chinese mainland, Hong Kong and Macau, officially launching an international brand acquisition strategy.
In 2016, ANTA operated de sant's brand business in Greater China exclusively with a 60% stake of 150 million yuan, and in the first half of 2017, it launched its retail business operations to enter the high-end winter sports market, covering various products such as skiing, comprehensive training, running and golf. The brand is also the designated clothing brand for the Japan Winter Olympics.
The most well-known acquisition occurred in 2018, when ANTA Sports, together with private equity fund Fontaine Vest Partners and Fangyuan Capital, successfully acquired AmerSports with a tender offer value of approximately €4.6 billion (approximately RMB36 billion). "Amer Sports" may not be heard of, but its outdoor brands Archaeopteryx and tennis brand Wilson are all well-known sports brands that are familiar. Since then, ANTA has taken the big outdoor brand of Archaeopteryx under its doors.
Recently, ANTA Sports announced the retail turnover of Q4 in 2021, anta main brand recorded 10-20% mid-term growth year-on-year, Fila recorded a high-unit growth year-on-year, and other brands increased by 30-35% year-on-year. For the whole year, ANTA's main brand increased by 25-30% year-on-year, FILA increased by 25-30% year-on-year, and other brands increased by 50%-55% year-on-year. In addition, the company issued a profit forecast, and it is expected that the overall revenue of the Group will increase by no less than 35% year-on-year in 2021, the net profit (excluding the loss of the joint venture company) is expected to increase by no less than 35% year-on-year, and the net profit (including the loss of the joint venture company) will increase by no less than 45% year-on-year.
On December 18 last year, ANTA Group officially announced the new decade strategy and sustainable development goals, clarifying that the next development goal will be upgraded from "single focus, multi-brand, omni-channel" to "single focus, multi-brand, globalization". "Single focus" and "multi-brand" continue the company's previous planning, indicating that the group will continue to focus on the golden track of sporting goods, adhere to the multi-brand business strategy, and give full play to the synergy effect. "Globalization" means that the company is committed to achieving the global market share of ANTA Group + Amer Group by 2030. 1) ANTA main brand: to open up the international market, to the world stage. 2) Amer: Strengthen the development of the three major markets of China, North America and Europe, and accelerate the realization of the five 1 billion euro targets, that is, by 2025, Archaeopteryx, Wilson, Salomon, the Chinese market, and DTC channels will achieve sales of 1 billion euros each.
Securities Daily
"ANTA Sports Released 2021 Performance Forecast, its core brand FILA growth hit a bottleneck"
On January 20, Credit Suisse released a research report pointing out that it is optimistic about the long-term prospects of ANTA Sports and the company's ability to execute, reiterating its "outperform the market" rating with a target price of HK$145.59. On the same day, Tianfeng Securities also issued a document pointing out that it maintained the buy rating of ANTA Sports.
In terms of stock price, the stock price of Anta Sports has continued to rise in the past two days. However, for the retail sales amount of the brand, ANTA Sports announced that it does not represent the overall revenue of the Group, but can be regarded as a business operation indicator of the different brands of the Group.
It is worth noting that the FILA brand showed a lackluster growth momentum in the second half of 2021. From the data point of view, in the first quarter of 2021, the brand's retail sales recorded a year-on-year increase of 75%-80%, and since then it has begun to decline. In the first half of the year, it achieved positive growth of 50%-55% year-on-year. In the third and fourth quarters, only single-digit growth was completed.
In fact, for the weakness of performance, the volume of the FILA brand has reached the platform period. The next growth will tend to stabilize, and companies need to further refine the granularity of operations to seek further improvement of profit margins.
For future development, from the "five-year plan" announced by ANTA earlier, it plans to grow at a compound growth rate of 18%-25% in the next 5 years. Mainly through the rapid development of online channels and the continuous improvement of the number of offline stores. That is to say, in the next five years, the revenue planned by ANTA Sports will double.
For such performance goals, anta's main brand has room to continue to tap compared to similar competitors, both in terms of brand price and market space. At present, the main means given by ANTA is to promote the transformation of DTC. DTC literally translates as direct to the consumer, which simply means to remove the middleman link between the production enterprise and the consumer.
For the DTC strategic results, ANTA Sports said that the relevant operating data will be released in March 2022. However, what can be disclosed at present is that indicators such as electricity efficiency, commodity management efficiency, organizational efficiency, and profitability have all improved. For 2022, it also pointed out that DTC in 2022 will have a certain impact on revenue growth, but the impact will be less than in 2021.
The above-mentioned industry analysts pointed out that DTC can help companies improve profit margins and save middlemen costs. Because of the removal of middlemen and other links, direct contact with consumers, DTC brands have greater control over consumer data and experience.
However, compared with offline channels, the transfer of distribution to direct operation has invisibly increased various expenses such as rent, water and electricity, and employee wages, and while gross profit has increased, costs have also increased. Therefore, how to balance the relationship between gross profit and cost under the DTC model is also a problem that ANTA Sports has to face.
For 2022, with the holding of the Winter Olympic Games, related Olympic products will undoubtedly have great publicity for ANTA, and ANTA Sports also said that it will increase marketing efforts in this regard. At the same time, with the boom in domestic products and the transformation of achievements brought about by its high research and development investment, for Anta, a certain opportunity will be formed, but it depends on whether it can be grasped.
Summary of brokerage research reports
Everbright Securities
In 21 years, the company will promote the development of three growth curves, including ANTA's main brand, FILA, and other brands (Desante, Kolon), of which the ANTA brand as the cornerstone to promote the positioning of "volkswagen, professional, new domestic products", seize the two olympic opportunities, consolidate and enhance the competitiveness of the brand, 21 years of the company's target turnover growth in double digits (high double digits under optimistic expectations), superimposed DTC direct operation will affect the revenue growth rate will be higher; FILA brand to maintain high-quality growth, covering more and wider high-end consumer groups; Desant, Desant, As a high-potential growth brand, Kolon is expected to continue to maintain a high growth rate by tapping into the huge potential of the outdoor and winter sports markets.
We continue to be optimistic about the company's multi-brand omni-channel development, under the background of 21 years of demand recovery, we look forward to the recovery of sportswear leaders in the leading industry, the replication of excellent operational experience to promote the development of multiple brands to bring multiple growth points, with the continued optimization of retail discounts, DTC and digital transformation promotion, online and offline integration and other measures to promote, operational efficiency continues to improve, new brand cultivation gradually brings performance contributions.
Guosheng Securities
1. The main brand positioning is reshaped, FILA is growing strongly, and the advantages of multi-brand strategy are highlighted. At the beginning of the year, ANTA established the positioning of the new domestic product of "technology-led mass professional movement", and implemented the DTC channel strategic transformation based on this in the second half of the year. FILA's high-end image has been further strengthened, and the competitiveness of products has been enhanced in all aspects.
2. The quality of operation has gradually improved, and abundant cash flow has provided guarantee for the company's development. Mainly due to the main brand channel transformation to recover inventory, at present we expect the channel inventory to basically recover health, in 2021 under further optimization, anta brand and FILA brand library-to-sales ratio is expected to increase to 5-6; within the controllable range.
3. In 2021, for the 30th anniversary of the establishment of ANTA, the "Double Olympic" heat wave will help rapid growth. We expect that in 2021, the ANTA brand will achieve high double-digit/nearly 30% growth in turnover/revenue after the completion of repositioning and channel transformation, and the revenue of the integrated group is expected to exceed 30%. As the industry leader, the company does not forget its original intention to adhere to change, and on the occasion of thirty years, through the multi-level growth curve, it is re-defined the development path of its brands, and it is expected to achieve sustained and high-quality growth in the long run.
Produced by Jingguan Commercial
The content of this article is for informational purposes only and does not constitute investment advice.
Source: Brokerage China, Securities Daily, Everbright Securities, Guosheng Securities
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